Who determines whether to charge encroachment fees for Pearce Bespoke?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Encroachment Fee | 20% of all revenue generated from any client in any territory outside of your Franchised Territory, payable to us or the franchisee whose territory was | As outlined in the Manuals. Currently, they are due 10 days after notice from us | Imposition of such fees are based upon the facts leading up to the alleged encroachment and the determination of whether to charge such fees will be at our sole discretion. |
Source: Item 6 — OTHER FEES (FDD pages 11–15)
What This Means (2025 FDD)
According to Pearce Bespoke's 2025 Franchise Disclosure Document, the decision to charge encroachment fees rests solely with Pearce Bespoke. An encroachment fee, set at 20% of revenue generated outside a franchisee's territory, is levied if a franchisee is deemed to have encroached upon another's territory. These fees are payable to either Pearce Bespoke or the franchisee whose territory was encroached upon.
The imposition of encroachment fees is not automatic. Pearce Bespoke will evaluate the circumstances leading to the alleged encroachment. This evaluation considers the specific facts and context to determine whether the fee is warranted. The fees are due 10 days after notice from Pearce Bespoke, as outlined in the company's manuals.
This policy highlights the importance of clearly defined territories in the franchise agreement. Prospective Pearce Bespoke franchisees should carefully review the territory provisions and understand what activities might be considered encroachment. It is also important to understand the process Pearce Bespoke uses to evaluate encroachment claims and how disputes are resolved. Franchisees should maintain open communication with Pearce Bespoke to address any potential territorial issues proactively.