What constitutes a 'Destruction Event' for a Pearce Bespoke Mobile Franchise?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
ning additional Businesses in your Development Area, you must: (i) possess sufficient financial and organizational capacity to develop, open, operate, and manage each additional Mobile Franchise in our reasonable judgment; (ii) be in full compliance with all brand requirements at any existing Businesses you operate; and (iii) be in compliance with any Franchise Agreement or any other agreement entered into with us.
- 3.2 Damaged Operating Assets. If the equipment and/or vehicles ("Operating Assets") used in the operation of any Mobile Franchise in your Development Schedule are destroyed or damaged by any cause beyond your control such that they may no longer continue to be utilized for the operation of a particular Business, you must immediately give us notice of such destruction or damage ("Destruction Event"). You must diligently work to repair and replace the Operating Assets of your Mobile Franchise as soon as possible to resume operation of your Business. If a Mobile Franchise is closed due to a Destruction Event, the Mobile Franchise will continue to be deemed "in operation" for the purpose of this Agreement for up to 30 days after the Destruction Event occurs. If a Mobile Franchise (i) is closed in a manner other than those described in this Section 3.2 or as otherwise agreed by us in writing or (ii) fails to reopen within 30 days after a Destruction Event, then we may exercise our rights under Section 6.2 (Our Remedies).
Source: Item 23 — RECEIPTS (FDD pages 39–172)
What This Means (2025 FDD)
According to Pearce Bespoke's 2025 Franchise Disclosure Document, a 'Destruction Event' occurs when the equipment and/or vehicles ('Operating Assets') used in the operation of a Mobile Franchise are destroyed or damaged by any cause beyond the franchisee's control, preventing their continued use in the business. The franchisee must promptly notify Pearce Bespoke of such an event.
Following a Destruction Event, the Pearce Bespoke Mobile Franchise is considered 'in operation' for up to 30 days, allowing the franchisee time to repair or replace the damaged Operating Assets. The franchisee is expected to diligently work towards resuming business operations as quickly as possible.
If the Pearce Bespoke Mobile Franchise remains closed for more than 30 days due to the Destruction Event, or if the closure is due to other reasons not approved by Pearce Bespoke in writing, Pearce Bespoke may exercise its remedies as outlined in Section 6.2 of the agreement. However, if the Operating Assets are completely destroyed and irreparable, Pearce Bespoke will not pursue those remedies, provided that the franchisee arranges for new Operating Assets within 30 days of the Destruction Event and reopens the Mobile Franchise within 90 days.