What is the due date for the Transfer Fee for a Pearce Bespoke franchise?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Transfer Fee | Whichever is greater: | Before completion of | Subject to state law |
| (i) | transfer | ||
| $10,000 | |||
| or | |||
| (ii) | |||
| 25% of | |||
| the then current franchise | We will not charge Transfer Fee for | ||
| fee | transfers to immediate family. | ||
-
- This fee is payable when the Franchise Agreement or a substantial portion of the assets of the Franchise or any controlling interest in the Franchise Agreement or the assets of the Franchise are transferred.
Source: Item 6 — OTHER FEES (FDD pages 11–15)
What This Means (2025 FDD)
According to Pearce Bespoke's 2025 Franchise Disclosure Document, the Transfer Fee is due before the completion of the transfer. The transfer can involve the Franchise Agreement itself or a substantial portion of the assets of the franchise, or any controlling interest in the Franchise Agreement or the assets of the Franchise.
The Transfer Fee is either $10,000 or 25% of the then-current franchise fee, whichever is greater. However, Pearce Bespoke will not charge a Transfer Fee for transfers to immediate family members.
This means that if a franchisee decides to sell their Pearce Bespoke franchise, they must pay the Transfer Fee before finalizing the sale. This fee compensates Pearce Bespoke for the administrative costs and efforts associated with approving the transfer and onboarding a new franchisee. It is important to note that transfer fees are a common practice in franchising, intended to ensure the continued quality and consistency of the brand. Franchisees should factor this fee into their financial planning when considering selling their franchise.