Is the Pearce Bespoke Development Fee refundable?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
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). The Development Fee will be credited towards 100% of the Franchise Fee due under the Franchise Agreement for each Mobile Franchise that you develop pursuant to this Agreement, including the Initial Franchise Agreement. The Development Fee is fully earned by us when we and you sign this Agreement and is non-refundable, even if you do not comply with the Development Schedule.
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 non-refundable. The Development Fee is paid upon execution of the Area Development Agreement, with the amount specified in Exhibit A. This fee is based on the initial franchise fee required for each Mobile Franchise that the franchisee intends to develop.
The Development Fee is credited towards 100% of the Franchise Fee due under the Franchise Agreement for each Mobile Franchise developed under the Area Development Agreement, including the Initial Franchise Agreement. However, the FDD clearly states that the Development Fee is fully earned by Pearce Bespoke upon signing the agreement and is non-refundable.
This means that a prospective Pearce Bespoke franchisee should be aware that once the Area Development Agreement is signed, the Development Fee is immediately earned by the franchisor and will not be returned, even if the franchisee fails to meet the development schedule outlined in the agreement. This is a standard practice in franchising, as the fee compensates the franchisor for granting the development rights and foregoing other potential franchisees in the area.