To whom is the Pearce Bespoke development fee paid?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
| 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 |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 15–19)
What This Means (2025 FDD)
According to Pearce Bespoke's 2025 Franchise Disclosure Document, the development fee is paid directly to the franchisor, Pearce Bespoke. This fee, which amounts to $106,800 for two territories, is due in a lump sum when the Development Agreement is signed.
This payment structure is typical in franchise agreements, where initial fees are paid to the franchisor to secure rights and access to the franchise system. The development fee likely covers Pearce Bespoke's costs associated with granting the development rights, providing initial support, and preparing the franchisee to establish multiple locations.
Prospective franchisees should note that this fee is in addition to the estimated initial investment for the first franchised business, which ranges from $13,919 to $179,220 and is paid to both Pearce Bespoke and third parties. Understanding the allocation of these initial costs is crucial for financial planning and ensuring sufficient capital is available to launch and sustain the franchise.