What is the Cumulative Development Fee for two 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 two franchises under a Development Agreement is $106,800. This fee is paid in exchange for the right to develop multiple Pearce Bespoke franchises within a specific area, as outlined in the Development Agreement.
This fee structure incentivizes franchisees to commit to opening multiple locations, allowing Pearce Bespoke to expand its brand presence more rapidly. The development fee compensates Pearce Bespoke for granting the franchisee exclusive development rights within a defined territory. This up-front investment secures the franchisee's ability to grow their Pearce Bespoke business across multiple locations without paying additional initial franchise fees for each subsequent location.
It's important to note that while the cumulative development fee covers the right to develop multiple franchises, the franchisee will still need to cover other costs associated with opening each location, such as the opening inventory package and potentially clothier inventory packages. The Development Fee is deemed fully earned upon payment and is not refundable under any circumstances.
Prospective Pearce Bespoke franchisees should carefully consider their financial capacity and business plan before entering into a Development Agreement. While the reduced franchise fee for subsequent locations can be advantageous, it's crucial to ensure sufficient capital is available to successfully launch and operate each franchise within the agreed-upon development schedule.