Does Pearce Bespoke currently have a contribution requirement?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
etition covenants in the Franchise Agreement | | Type of Fee | Amount | Due Date | Remarks | |-------------------------------------|--------------------------------------------------|----------------------------------------|--------------------------------------------------------------------------------------------| | Contribution | | implementation | we reserve the right to implement | | | | | one in the future, implemented by | | | | | Pearce Bespoke or the franchisees. | | Local Marketing | Minimum 5% of your Gross | Minimum amount must be | See Note 5 below. See Note 6 below | | Expenses | Sales | spent during each calendar | | | | | year. | We reserve the right to increase to a | | | | | maximum of 6% upon 30 days' | | | | | written notice | | Transfer Fee | Whichever is greater: | Before completion of | Subject to state law | | | (i) | transfer | | | | $10,000 | | | | | or | | | | | (ii) | | | | | 25% of | | | | | the then current franchise | | We will not charge Transfer Fee for | | | fee | | transfers to immediate family.
Source: Item 6 — OTHER FEES (FDD pages 11–15)
What This Means (2025 FDD)
According to the 2025 Pearce Bespoke Franchise Disclosure Document, Pearce Bespoke reserves the right to implement a contribution requirement in the future, which could be implemented either by Pearce Bespoke itself or by the franchisees. Currently, Pearce Bespoke franchisees are required to spend a minimum of 5% of their gross sales on local marketing expenses annually. Pearce Bespoke also retains the right to increase this local marketing expense requirement to a maximum of 6% with 30 days written notice.
If a Pearce Bespoke franchisee does not meet the minimum 5% spending requirement on cooperative or local advertising, Pearce Bespoke has the discretion to require the franchisee to pay the difference between what was spent and what should have been spent. Pearce Bespoke suggests that franchisees spend between $12,000 and $15,000 on advertising and marketing during their first year of operation.
These advertising and marketing requirements are fairly standard in the franchise industry, as franchisors rely on both national brand awareness and local marketing efforts to drive business to individual franchisees. Prospective Pearce Bespoke franchisees should carefully consider these ongoing marketing expenses when evaluating the overall cost of investment and potential profitability.