What is the dependency between compliance with existing agreements and opening additional Pearce Bespoke businesses?

According to Pearce Bespoke's 2025 Franchise Disclosure Document, a franchisee's ability to open additional Pearce Bespoke locations within their development area is contingent upon their compliance with existing agreements. Specifically, before opening more businesses, the franchisee must (i) possess sufficient financial and organizational capacity to develop, open, operate, and manage each additional Mobile Franchise in Pearce Bespoke's reasonable judgment; (ii) be in full compliance with all brand requirements at any existing Businesses they operate; and (iii) be in compliance with any Franchise Agreement or any other agreement entered into with Pearce Bespoke.

This means that a Pearce Bespoke franchisee cannot expand if they are not meeting the brand's standards at their current locations or if they have violated any terms of their existing agreements with the company. This condition protects the Pearce Bespoke brand by ensuring that new locations are operated by franchisees who have demonstrated their ability to successfully manage a Pearce Bespoke business and adhere to the company's standards.

For a prospective Pearce Bespoke franchisee, this highlights the importance of maintaining compliance with all agreements and brand standards from the outset. Failure to do so could not only jeopardize their existing franchise but also prevent them from expanding their business within their designated area. This clause incentivizes franchisees to prioritize operational excellence and maintain a strong working relationship with Pearce Bespoke Franchising, LLC.