What constitutes 'Operating Assets' for a Pearce Bespoke Mobile Franchise?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
ur 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 the 2025 Pearce Bespoke Franchise Disclosure Document, Operating Assets are defined as the equipment and/or vehicles used in the operation of a Mobile Franchise.
For a Pearce Bespoke franchisee, this definition is important because it relates to the requirements for maintaining operations. If these Operating Assets are damaged or destroyed, the franchisee must notify Pearce Bespoke and diligently work to repair or replace them to resume business as soon as possible.
Pearce Bespoke allows up to 30 days after a Destruction Event (damage or destruction) for the Mobile Franchise to be considered "in operation." However, if the assets are irreparable, the franchisee must arrange for new Operating Assets with Pearce Bespoke or their supplier within 30 days of the event and be fully operational within 90 days to avoid potential penalties.
This clause ensures that Pearce Bespoke franchisees understand their responsibilities in maintaining operational capacity and provides a framework for handling unforeseen circumstances that may impact their ability to conduct business. Franchisees should clarify with Pearce Bespoke what specific equipment and vehicles are included as 'Operating Assets' to ensure full compliance.