Is the development fee for a Pearce Bespoke development agreement refundable?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
t – Multiple Businesses Under Development Agreement**
| Type of Expenditure | Amount | Method of | When Due | To Whom | |
|---|---|---|---|---|---|
| Payment | Payment Is Made | ||||
| Development Fee (1) | $106,800 (2 Territories) | Lump sum | When sign Development Agreement | Us | |
| Estimated Initial Investment for First Franchised Business (2) | $13,919 - $179,220 | As incurred | As incurred | Us and third parties | |
| TOTAL | $120,719 - $286,020 | ||||
| #### Notes: |
In general, none of the expenses listed in the above chart are refundable.
-
- Please see Item 5 for information on the Development Fee.
- 2. These are the estimates for development of your first Franchised Business. Costs associated with additional territories are subject to factors that we cannot estimate or control, such as inflation, increased labor costs or increased materials costs.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 15–19)
What This Means (2025 FDD)
According to the 2025 Pearce Bespoke Franchise Disclosure Document, the development fee is generally nonrefundable. While Item 7 provides information on the estimated initial investment for both single territory franchises and multiple businesses under a development agreement, it states that in general, none of the expenses listed are refundable.
Specifically, for a development agreement, the development fee is paid in a lump sum when the Development Agreement is signed. For two territories, this fee is listed as $106,800. The FDD indicates that prospective franchisees should refer to Item 5 for more information on the Development Fee.
While the initial franchise fee is explicitly stated as non-refundable, the general statement about non-refundability of expenses in Item 7 applies to the development fee as well. However, prospective franchisees should carefully review Item 5 of the FDD and consult with Pearce Bespoke to confirm the specific terms and conditions regarding the refundability of the development fee, as well as understand under which, if any, circumstances a refund may be possible.