Does Pearce Bespoke deduct any other monetary obligation that the Franchisee has to approved suppliers?
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 det
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
The 2025 Pearce Bespoke Franchise Disclosure Document outlines the financial relationship between the franchisee, Pearce Bespoke, and approved suppliers. Specifically, Pearce Bespoke calculates Gross Sales, Net Sales, and Credit Card Sales weekly, which determines certain fees payable by the franchisee. Pearce Bespoke then provides a report to the franchisee detailing these sales figures.
Pearce Bespoke pays the franchisee the Net Sales generated from their business during the previous week, but this payment is subject to deductions. These deductions include fees such as the Royalty Fee, Brand Fund Fee, POS System Subscription Fee, and Technology Fee.
The FDD does not explicitly state that Pearce Bespoke deducts any other monetary obligations the franchisee owes to approved suppliers from the weekly Net Sales payment. However, it is important to note that franchisees must satisfy all accrued monetary obligations to suppliers to transfer their franchise. It is also a condition for renewal that the franchisee has complied with all material provisions of the agreement, including payment of all monetary obligations owed to Pearce Bespoke, its affiliates, and suppliers.