What is covered under Section 5.G of the Pearce Bespoke Franchise Agreement regarding Currency?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
5. ROYALTY FEE
A. Royalty Fee.
Franchisee will, for the term of this Agreement, pay to Franchisor a Royalty Fee equal to the greater of (i) ten percent (10%) of Franchisee's Gross Sales (as defined below), or (ii) a mandatory Minimum Weekly Royalty Fee (as defined in Section 5(B) below). Franchisee's obligation to pay Franchisor the Royalty Fee under the terms of this Agreement will remain in full force and effect until this Agreement has expired or is terminated or transferred under the provisions herein.
B. Mandatory Minimum Performance Standards.
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
Based on the 2025 Pearce Bespoke Franchise Disclosure Document, Section 5 pertains to the royalty fee, but it does not contain a subsection G. Section 5 outlines the franchisee's obligation to pay a royalty fee to the franchisor for the term of the agreement. This fee is the greater of either 10% of the franchisee's gross sales or a mandatory minimum weekly royalty fee, as detailed in Section 5(B). The obligation to pay this royalty fee remains in effect until the agreement expires, is terminated, or is transferred according to the agreement's provisions.
Section 5 does not specify any details about currency or how payments should be made. The FDD lacks information regarding the currency in which the royalty fee must be paid, any potential currency conversion policies if sales are made in a different currency, or any fees associated with currency exchange.
A prospective Pearce Bespoke franchisee should seek clarification from the franchisor regarding the acceptable currency for royalty fee payments, the process for handling sales in different currencies, and any associated currency exchange policies or fees to fully understand their financial obligations.