Can the continuing royalty rates and advertising contributions in a renewed Pearce Bespoke Franchise Agreement differ from the original agreement?

According to Pearce Bespoke's 2025 Franchise Disclosure Document, the continuing royalty rates and advertising contributions in a renewed franchise agreement may differ from those in the original agreement. To renew the franchise, a franchisee must execute the then-current Franchise Agreement, which, while not containing further renewal rights, may stipulate different royalty rates and advertising contributions than the original agreement.

This condition means that when a Pearce Bespoke franchisee seeks to renew their franchise agreement, they should be prepared for potential changes in the financial terms. The franchisor has the right to adjust these rates, which could impact the franchisee's profitability and overall financial obligations. It is crucial for franchisees to carefully review the terms of the renewal agreement to understand any changes to these rates and contributions.

This flexibility allows Pearce Bespoke to adapt its financial model over time, potentially reflecting changes in market conditions, brand development strategies, or the competitive landscape. While this benefits the franchisor, it introduces an element of uncertainty for franchisees, who must assess whether the revised terms are still favorable for their business. Franchisees should negotiate these terms carefully and seek professional advice to fully understand the implications of any changes.