What constitutes 'regular business hours' for a Pearce Bespoke franchise, as it relates to abandonment?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
fit of creditors;
- (8) Franchisee voluntarily or otherwise "abandons" (as defined below) the franchised business or fails to operate the business for a period of seven (7) consecutive days without Franchisor's prior written approval. The term "abandon" means Franchisee's failure to operate the Pearce Bespoke Franchise during regular business hours for a period of ten (10) consecutive days without Franchisor's prior written consent unless such failure is due to an act of God, war, strikes, or riots;
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to the 2025 Pearce Bespoke Franchise Disclosure Document, a franchisee can be considered to have 'abandoned' the franchise if they fail to operate during regular business hours for a period of ten consecutive days without prior written consent from Pearce Bespoke. This abandonment clause is significant because it can lead to termination of the franchise agreement. The only exceptions to this rule are failures to operate caused by acts of God, war, strikes, or riots.
However, the FDD does not explicitly define what constitutes 'regular business hours'. Instead, it states that the Pearce Bespoke franchise will be open for business at the time and in the manner that Pearce Bespoke provides in the Operations Manual. The FDD also notes that the minimum hours of operation may be periodically amended by Pearce Bespoke and/or updated in the Operations Manual.
Given this lack of a concrete definition in the FDD, it is critical that prospective Pearce Bespoke franchisees carefully review the Operations Manual and discuss the specific requirements for operating hours with the franchisor. Understanding these requirements is essential to avoid any potential breach of contract due to perceived abandonment. Franchisees should also seek clarification on how any changes to the minimum hours of operation will be communicated and implemented.