What is the duration of the initial franchise agreement for a Pearce Bespoke franchise?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
| Initial Franchise Fee (for | ||
|---|---|---|
| Number of Franchised | each Franchised | |
| Businesses | Business) | |
| First | $49,500 | |
| Second | $42,000 | |
| Third | $38,000 | |
| Fourth | $30,000 | |
| Fifth | $25,000 | |
| Thereafter | $20,000 |
Note 2 – Summary of Significant Accounting Policies – Continued
The initial fees are paid in consideration of the rights granted in the franchise agreement and are non-refundable. The initial fees are recognized as revenue over the term of the initial franchise agreement, which is ten years. Subject to certain requisites, the Company may renew the term of a franchisee upon expiration of the initial term, for an additional ten-year periods. The renewal fee, to be no more than 25% or $10,000 of the then current initial franchise fee, whichever is greater, i
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 39)
What This Means (2025 FDD)
According to Pearce Bespoke's 2025 Franchise Disclosure Document, the initial franchise agreement has a term of ten years. This means a franchisee can operate their Pearce Bespoke franchise for a decade before needing to renew the agreement.
Pearce Bespoke may offer franchisees the option to renew their franchise agreement for additional ten-year periods after the initial term expires. This provides an opportunity for franchisees to continue operating their business under the Pearce Bespoke brand, subject to meeting certain requirements set by the company.
To renew the franchise agreement, Pearce Bespoke franchisees must pay a renewal fee. This fee will not exceed 25% of the then-current initial franchise fee or $10,000, whichever is greater. This renewal fee compensates Pearce Bespoke for granting the franchisee the right to continue operating under the franchise agreement for the renewal term. The renewal fee is non-refundable and is recognized as revenue by Pearce Bespoke over the term of the renewal period.