What costs does the initial franchise fee for a Pearce Bespoke franchise cover?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee will pay Franchisor a non-refundable Initial Franchise Fee equal to the amount listed in ATTACHMENT A - FRANCHISEE SPECIFIC TERMS of this Agreement, which will be fully earned and payable on the date of this Agreement. The Initial Franchise Fee payable by Franchisee is payment to Franchisor for the costs that it will incur to get Franchisee into business including costs Franchisor incurs for training, territory evaluation, business overhead costs, travel costs, and for the other initial services Franchisor provides hereunder.
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to the 2025 Pearce Bespoke Franchise Disclosure Document, the initial franchise fee covers several costs that the franchisor incurs to help the franchisee start their business. This fee is non-refundable and is fully earned by Pearce Bespoke upon the signing of the franchise agreement.
The initial franchise fee covers the costs Pearce Bespoke incurs for franchisee training. It also covers territory evaluation to determine the suitability of the location. Additionally, the fee covers Pearce Bespoke's business overhead costs associated with setting up the franchise.
Furthermore, the initial franchise fee covers travel costs incurred by Pearce Bespoke and other initial services that Pearce Bespoke provides to the franchisee. It is important for prospective franchisees to understand that this fee is a one-time payment and is separate from ongoing royalty fees or other operational expenses.