What is the Cumulative Development Fee for three 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 three franchises will pay a Cumulative Development Fee of $152,700. This fee compensates Pearce Bespoke for granting the developer the rights to open multiple franchise locations within a specific area.
The Development Agreement allows qualified candidates to secure the rights to develop multiple Pearce Bespoke franchises. The franchisor determines the number of franchises based on factors like territory availability, the franchisee's business acumen, financial resources, and operational experience. This agreement requires the franchisee to develop a certain number of franchises deemed appropriate by Pearce Bespoke.
It's important to note that while the franchisee won't pay an additional initial franchise fee when signing individual franchise agreements under the Development Agreement, they must still execute Pearce Bespoke's current form of franchise agreement for each location. This includes the initial franchise granted concurrently with the Development Agreement. The Cumulative Development Fee is distinct from other initial fees such as the Franchise Fee, Opening Inventory Package, On-Site Training, and Clothier Inventory Package, and is non-refundable.