How does Pearce Bespoke determine the size of a Franchised Territory?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
ards | | | Total Pages | 49 |
ITEM 12 TERRITORY
You will receive a "Franchised Territory" surrounding the location of the Franchise when granted a Pearce Bespoke franchise. Pearce Bespoke utilizes computer modeled mapping which factors in population density and average household income. The Franchised Territory for Franchiseslocated in urban areas(metropolitan areas with a population in excess of 200,000 persons) generally will have a population of between 50,000 to 200,000 people or a population of no more than 50,000 people depending on which Franchise Fee is paid to us.
You must operate the Franchise only at the accepted location and you may not relocate the Franchise without obtaining our prior written consent.
Pearce Bespoke will not establish another franchised or company-owned Pearce Bespoke Franchise in your Franchised Territory. Pearce Bespoke has established a Pearce Bespoke e-commerce site on the internet. Although Pearce Bespoke does not do so as of the issuance date of this Disclosure Document, Pearce Bespoke reserves the right to distribute products through alternative channels of distribution, including the internet (or any other existing or future form of electronic commerce), using the Marks inside or outside of the Franchised Territory.
Source: Item 12 — TERRITORY (FDD pages 27–29)
What This Means (2025 FDD)
According to Pearce Bespoke's 2025 Franchise Disclosure Document, the franchised territory is determined using computer modeled mapping that considers population density and average household income. For franchises located in urban areas, defined as metropolitan areas with a population exceeding 200,000 people, the territory generally includes a population between 50,000 and 200,000 people. However, the population can be no more than 50,000 people depending on which Franchise Fee is paid to Pearce Bespoke.
It is important to note that Pearce Bespoke franchisees do not receive an exclusive territory. Franchisees may face competition from other franchisees, company-owned outlets, other distribution channels, or competitive brands controlled by Pearce Bespoke. The document specifies that Pearce Bespoke is not required to provide any compensation if they or their affiliates solicit or accept orders within a franchisee's territory.
Pearce Bespoke also requires franchisees to meet certain performance standards to retain their franchised territory. These standards include achieving specified gross sales and making minimum weekly royalty payments. The minimum gross sales start at $50,000 in Year 1, increasing to $75,000 in Year 2, $100,000 in Year 3, and then a 10% increase over the previous year's minimum for Year 4 and beyond. Similarly, minimum weekly royalty payments begin at $100 per week in Year 1, rising to $150 per week in Year 2, $200 per week in Year 3, with a 10% increase over the previous year's minimum for Year 4 and beyond.
Prospective franchisees should carefully consider the non-exclusive nature of the territory and the potential for competition, as well as the minimum performance standards required to maintain the territory. Understanding these factors is crucial for assessing the potential profitability and sustainability of a Pearce Bespoke franchise.