When is the Pearce Bespoke Development Fee due?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
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Development Agreement
Pearce Bespoke If we determine that you are financially and operationally qualified to develop multiple Franchises, we may offer you the opportunity to enter into a Development Agreement, in which you will commit to develop a certain number of Franchises that we determine to be appropriate. We have the right to determine the number of Franchises that we deem as appropriate in our sole and absolute discretion, based upon several factors, such as but not limited to, territory availability, your business acumen, your financial wherewithal, your ability to fund or obtain funding for your Franchise, and your overall business and operational experience. If you enter into a Development Agreement, you must pay us a one- time development fee
2025 FDD 9
upon execution of your Development Agreement ("Development Fee"). Your Development Fee will depend on the number of Franchises we grant you the right to open within the Development Area, and is calculated as set forth in the table below:
| Number of | | | |---|---|---| | Franchises We Grant | | | | | Franchise Fee | Cumulative Development Fee | | You the Right to | | | | | | | | Develop | | | | 1 | $55,900 | $55,900 | | 2 | $50,900 | $106,800 | | 3 | $45,900 | $152,700 | | 4 | $40,900 | $193,600 | | 5 | $35,900 | $229,500 | | 6 | $30,900 | $260,400 | If we permit you to open more than six (6) Franchises under a Development Agreement, your Development Fee will be equal to (i) $260,400, plus (ii) $30,900 for each additional Franchise that we grant you the right to develop. You will be required to enter into our then current form of Franchise Agreement for each Franchise that you wish to open under your Development Agreement, but you will not be required to pay any additional initial franchise fee at the time you execute each of these franchise agreements. If you enter into a Development Agreement, you must execute our current form of franchise agreement for the initial Franchise we grant you the right to open within your Development Area, concurrently with the Development Agreement.
Opening Inventory Package
Upon signing the Franchise Agreement, you will also pay us $8,000 per Franchised Territory for your opening inventory and equipment, which is used in the initial start-up phase of your Franchise ("Opening Inventory Package").
Source: Item 5 — INITIAL FEES (FDD pages 9–11)
What This Means (2025 FDD)
According to Pearce Bespoke's 2025 Franchise Disclosure Document, the Development Fee is due upon the execution of the Development Agreement. Specifically, if Pearce Bespoke determines that a prospective franchisee is qualified to develop multiple franchise locations, they may offer a Development Agreement.
The Development Fee amount depends on the number of franchises the franchisee is granted the right to open within a specific Development Area. The FDD outlines the franchise fee and cumulative development fee based on the number of franchises granted. For example, if a franchisee is granted the right to develop one franchise, the franchise fee is $55,900, and the cumulative development fee is also $55,900. If the franchisee is granted the right to develop six franchises, the franchise fee is $30,900, and the cumulative development fee is $260,400.
For franchisees permitted to open more than six franchises under a Development Agreement, the Development Fee is calculated as $260,400, plus $30,900 for each additional franchise the franchisee is granted the right to develop. Franchisees will be required to enter into Pearce Bespoke's current form of Franchise Agreement for each franchise they wish to open under their Development Agreement, but they will not be required to pay any additional initial franchise fee at the time they execute each of these franchise agreements.
It is important to note that the Development Fee, like other initial fees, is deemed fully earned upon payment and is not refundable under any circumstances. This is a standard practice in franchising, as these fees compensate the franchisor for granting the rights to develop and operate franchises within a specific area.