Does 'Costs of Sales' for Pearce Bespoke include the cost of inventory?

According to Pearce Bespoke's 2025 Franchise Disclosure Document, the term 'Costs of Sales' does include the cost to purchase inventory. Specifically, 'Costs of Sales' encompasses the expenses incurred to acquire inventory and supplies that are utilized in providing sales and services to customers. This definition is important for prospective franchisees to understand, as it clarifies what expenses are included when evaluating the financial performance of a Pearce Bespoke franchise.

Understanding what is included in 'Costs of Sales' is crucial for accurately assessing the profitability of a Pearce Bespoke franchise. Franchisees should carefully consider inventory management and supply costs, as these directly impact the 'Costs of Sales' and, consequently, the overall financial performance of their business. Efficient inventory control and strategic sourcing of supplies can help minimize these costs and improve profitability.

Prospective franchisees should review the complete Item 19 in the FDD and request the written substantiation for the financial performance representation to gain a comprehensive understanding of how 'Costs of Sales' are calculated and how they affect the potential financial outcomes of a Pearce Bespoke franchise. This due diligence will enable them to make informed decisions about their investment and operational strategies.