What costs are included in the audit expenses payable by the Pearce Bespoke franchisee?

According to Pearce Bespoke's 2025 Franchise Disclosure Document, if a renewal audit reveals any deficiencies, the franchisee is responsible for covering the costs incurred by Pearce Bespoke in connection with the audit. These costs are payable upon demand by the franchisee before the current term expires.

The expenses that the Pearce Bespoke franchisee must cover include audit costs, transportation, lodging, meals, and any other expenses incurred by Pearce Bespoke during the audit. This means that in addition to the direct costs of the audit itself, the franchisee is also responsible for travel-related expenses for the auditors.

This condition applies when the franchisee seeks to renew their franchise agreement. Pearce Bespoke conducts an audit to ensure compliance with brand standards, and any identified issues must be resolved before the renewal can proceed. The financial burden of the audit falls on the franchisee if deficiencies are found, which could potentially add a significant unexpected expense during the renewal process. Franchisees should maintain compliance with Pearce Bespoke's standards to avoid these costs.