What is the Cumulative Development Fee for four Pearce Bespoke franchises under a Development Agreement?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
| Number of | ||
|---|---|---|
| Franchises We Grant | ||
| Franchise Fee | Cumulative Development Fee | |
| You the Right to | ||
| Develop | ||
| 1 | $55,900 | $55,900 |
| 2 | $50,900 | $106,800 |
| 3 | $45,900 | $152,700 |
| 4 | $40,900 | $193,600 |
| 5 | $35,900 | $229,500 |
| 6 | $30,900 | $260,400 |
Source: Item 5 — INITIAL FEES (FDD pages 9–11)
What This Means (2025 FDD)
According to Pearce Bespoke's 2025 Franchise Disclosure Document, a franchisee who enters into a Development Agreement for four franchises will pay a cumulative development fee of $193,600. This fee is paid in exchange for the rights to develop and open four Pearce Bespoke franchises within a specific territory.
The Development Agreement allows Pearce Bespoke to assess a prospective franchisee's financial and operational capabilities before granting the right to develop multiple franchise locations. The number of franchises granted under a Development Agreement is determined by Pearce Bespoke based on factors such as territory availability, the franchisee's business acumen, financial resources, and overall business experience.
It's important to note that while the franchisee pays the cumulative development fee upfront, they will not be required to pay any additional initial franchise fees when they execute individual franchise agreements for each of the four locations. This structure is common in franchising, as it incentivizes multi-unit development while providing the franchisor with upfront capital and a commitment to expansion. The initial franchise fee is non-refundable under any circumstances.