What constitutes a non-curable default that could lead to termination of the Pearce Bespoke Development Agreement?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
law. | | g. “Cause” defined – curable | Not Applicable | | Not Applicable | | defaults | | | | | h. “Cause” defined – non-curable | Section 6.1 | | You fail to have open and operating, the minimum | | defaults | | | number of Businesses specified in the Development |#### B. Development Agreement
| Provision | Section in Development Agreement | Summary |
|---|---|---|
| a. Length of the franchise term | Section 5 | The term expires upon the deadline to develop the Businesses specified in the Development Schedule or upon the development of all Businesses. |
| b. Renewal or extension of the | Not Applicable | Not Applicable |
| term | ||
| c. Requirements for franchisee to | Not Applicable | Not Applicable |
| renew or extend | ||
| d. Termination by franchisee | Not Applicable | Not Applicable |
| e. Termination by us without | Not Applicable | Not Applicable |
| cause | ||
| f. Termination by us with cause | Section 6.1 | We can terminate only if you default (see (g.) and (h.) below). Subject to state law. |
| g. "Cause" defined – | Not Applicable | Not Applicable |
| curable | ||
| defaults | ||
| h. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 31–34)
What This Means (2025 FDD)
According to Pearce Bespoke's 2025 Franchise Disclosure Document, a non-curable default that could lead to the termination of the Development Agreement includes failing to have the minimum number of businesses open and operating by the specified Opening Deadline in the Development Schedule. Additionally, if any Franchise Agreement is terminated as a result of default, or if the franchisee breaches or fails to comply fully with any other provision of the Development Agreement, it can result in a non-curable default. All of these are subject to state law.
For a prospective Pearce Bespoke developer, this means that adhering to the Development Schedule and ensuring all franchise agreements remain in good standing is critical. Failure to meet the opening deadlines or any breach of the Development Agreement terms could lead to immediate termination without an opportunity to correct the issue. This places a significant emphasis on careful planning, securing suitable locations, and maintaining compliance with all Pearce Bespoke requirements.
It is important to note that the Development Agreement outlines specific obligations that must be met to avoid non-curable defaults. The Pearce Bespoke franchisee should carefully review the Development Schedule and all provisions of the Development Agreement to fully understand their responsibilities and the potential consequences of non-compliance. Understanding these terms is essential for successfully developing and operating multiple Pearce Bespoke franchises within the designated area.