What constitutes an encroachment by a Pearce Bespoke franchisee?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Encroachment Fee | 20% of all revenue generated from any client in any territory outside of your Franchised Territory, payable to us or the franchisee whose territory was | As outlined in the Manuals. Currently, they are due 10 days after notice from us | Imposition of such fees are based upon the facts leading up to the alleged encroachment and the determination of whether to charge such fees will be at our sole discretion. |
Source: Item 6 — OTHER FEES (FDD pages 11–15)
What This Means (2025 FDD)
According to Pearce Bespoke's 2025 Franchise Disclosure Document, encroachment occurs when a franchisee generates revenue from clients outside of their designated territory. If a Pearce Bespoke franchisee encroaches on another franchisee's territory, they will be charged a fee.
The encroachment fee is 20% of all revenue generated from the clients obtained outside of the franchisee's territory. This fee is payable to Pearce Bespoke or the franchisee whose territory was encroached upon. The due date for this fee is outlined in the Pearce Bespoke manuals and is currently 10 days after notice from Pearce Bespoke.
The FDD states that the imposition of encroachment fees is based on the specific facts leading up to the alleged encroachment. The decision to charge these fees is at Pearce Bespoke's sole discretion. This means that Pearce Bespoke has the authority to determine whether encroachment has occurred and whether to impose the associated fees, which introduces a degree of subjectivity and potential risk for franchisees.