What costs does the Pearce Bespoke transfer fee cover?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
subordinate to the transfereefranchisee's obligations to pay Royalty Fees or any other amounts due to Franchisor under the Franchise Agreement;
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- The transferee-franchisee successfully completes Franchisor's training program; and Franchisee pays Franchisor a transfer fee equal to the greater of (i) Ten Thousand Dollars ($10,000.00), or (ii) twenty five percent (2
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to the 2025 Pearce Bespoke Franchise Disclosure Document, the transfer fee covers costs that Pearce Bespoke incurs during the transfer process. These costs specifically include the costs of any required training for the transferee. The transfer fee is the greater of $10,000 or 25% of the then-current initial franchise fee.
This means that if a franchisee decides to sell their Pearce Bespoke franchise to a new owner, they will need to pay this transfer fee to Pearce Bespoke. This fee compensates Pearce Bespoke for their time and resources in ensuring the new franchisee is properly trained and meets the brand's standards. The fee also helps to maintain the consistency and quality of the Pearce Bespoke brand across all locations.
It is important to note that no transfer fee is payable for transfers to immediate family members, such as a spouse or children. This could be a significant benefit for franchisees who plan to pass their business on to their family. Prospective franchisees should consider the transfer fee and its implications when evaluating the overall cost of investing in a Pearce Bespoke franchise.