What is the Cumulative Development Fee for six 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, the cumulative development fee for six franchises under a Development Agreement is $260,400. This fee is paid in exchange for the rights to develop multiple Pearce Bespoke franchises, as detailed in the Development Agreement.
The Development Agreement is offered if Pearce Bespoke determines that a prospective franchisee is financially and operationally qualified to develop multiple franchise locations. The number of franchises granted under the agreement is at Pearce Bespoke's discretion, based on factors like territory availability and the franchisee's business experience and financial resources.
Importantly, while a franchisee pays the Development Fee upfront, they will not be required to pay any additional initial franchise fees when they execute individual franchise agreements for each location. This suggests the Development Fee covers the initial franchise fees for each of the six franchises. The franchisee must still sign Pearce Bespoke's current form of franchise agreement for the initial franchise concurrently with the Development Agreement.
Prospective franchisees should carefully consider the financial commitment and development timeline involved in a Development Agreement. It is crucial to assess one's capacity to manage and fund the development of multiple Pearce Bespoke locations before entering into such an agreement.