What is the Pearce Bespoke Development Fee based on?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
the number of Businesses specified in the development schedule in Exhibit A (the "Development Schedule"). This Agreement does not grant you any right to use the Marks (as defined in your Initial Franchise Agreement) or the System (as defined in your Initial Franchise Agreement). Rights to use the Marks and the System are granted only by the Franchise Agreements.
2. Fees
Upon execution of this Agreement, you must pay us a development fee in the amount specified in Exhibit A (the "Development Fee"), which is based on the initial franchise fee you must pay for each Mobile Franchise that you develop (the "Franchise Fee", which is also specified in Exhibit A).
Source: Item 23 — RECEIPTS (FDD pages 39–172)
What This Means (2025 FDD)
According to Pearce Bespoke's 2025 Franchise Disclosure Document, the Development Fee is based on the initial franchise fee that the franchisee must pay for each Mobile Franchise that they develop. This initial franchise fee is referred to as the "Franchise Fee" and is specified in Exhibit A of the Area Development Agreement.
The Development Fee is the amount specified in Exhibit A of the Area Development Agreement. Upon the execution of the Area Development Agreement, the franchisee must pay the Development Fee to Pearce Bespoke.
The Development Fee will be credited towards 100% of the Franchise Fee due under the Franchise Agreement for each Mobile Franchise that the franchisee develops, including the Initial Franchise Agreement. However, the Development Fee is fully earned by Pearce Bespoke when the Area Development Agreement is signed by both parties, and it is non-refundable, even if the franchisee does not comply with the Development Schedule.