What is the deadline for Pearce Bespoke to exercise their right of first refusal?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Development Agreement | Summary |
|---|---|---|
| n. Our right of first refusal to acquire franchisee's business | Section 7 | We have the first right of refusal on all transfer, exercisable withing 30 days of receiving an executed copy of the contract of transfer. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 31–34)
What This Means (2025 FDD)
According to Pearce Bespoke's 2025 Franchise Disclosure Document, Pearce Bespoke has a right of first refusal if a franchisee wishes to transfer their business. This right allows Pearce Bespoke to step in and purchase the franchise business on the same terms as a proposed transfer agreement.
The specific timeframe Pearce Bespoke has to exercise this right is "within 30 days of receiving an executed copy of the contract of transfer." This means that once a franchisee has a signed agreement with a third party to sell their franchise, they must provide a copy to Pearce Bespoke. Pearce Bespoke then has 30 days to decide whether to exercise its right and acquire the franchise itself.
This provision is important for prospective franchisees to understand because it gives Pearce Bespoke significant control over who can become a new franchisee. If Pearce Bespoke believes it is in their best interest to acquire the franchise location, they can do so, potentially preventing a franchisee from selling to their preferred buyer. Franchisees should factor this into their long-term business and exit strategy.