Does Pearce Bespoke deduct amounts owed by the Franchisee to affiliates of Pearce Bespoke for purchases of supplies?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
On a weekly basis, Franchisor will calculate the Gross Sales, Net Sales, and Credit Card Sales (as defined below) generated from the operation of Franchisees Pearce Bespoke Business. Certain fees are payable based upon Gross Sales or Credit Card Sales. On a weekly basis, Franchisor will provide a report to Franchisee, on the Gross Sales, Net Sales, and Credit Card Sales from Franchisee's Business. Franchisor will pay Franchisee, by EFT, ACH, direct deposit, or a similar means, the Net Sales generated from Franchisee's Business during the previous calendar week minus: (i) all fees, including Royalty Fee, Brand Fund Fee, POS System Subscription Fee, and Technology Fee as detailed in and permitted by this Agreement; (ii) amounts owe by Franchisee to Franchisor or its affiliates for purchases of supplies permitted by and in accordance with the terms of this Agreement; and (iii) any other monetary obligation that Franchisee has to Franchisor or its affiliates, or any approved suppliers that Franchisor has been made aware of prior to the date that Franchisor would have to make a payment to on Franchisee's behalf, which is permitted by and in accordance with the terms of this Agreement (the "Franchisee Share").
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to the 2025 Pearce Bespoke Franchise Disclosure Document, Pearce Bespoke will deduct amounts owed by the franchisee to Pearce Bespoke or its affiliates for purchases of supplies. These deductions are taken from the Net Sales generated by the franchisee's business during the previous calendar week.
Specifically, Pearce Bespoke calculates Gross Sales, Net Sales, and Credit Card Sales weekly. From the Net Sales, Pearce Bespoke deducts fees like the Royalty Fee, Brand Fund Fee, POS System Subscription Fee, and Technology Fee. Additionally, they deduct amounts the franchisee owes to Pearce Bespoke or its affiliates for supply purchases, as well as any other monetary obligations to Pearce Bespoke, its affiliates, or approved suppliers that Pearce Bespoke is aware of before making payment to the franchisee.
This process ensures that Pearce Bespoke and its affiliates are promptly compensated for supplies and other obligations. The franchisee receives a weekly report detailing Gross Sales, Net Sales, and Credit Card Sales, providing transparency in the deductions made. This system helps Pearce Bespoke maintain financial control and ensures consistent payments for goods and services provided to the franchisee.