To whom is the Pearce Bespoke encroachment fee payable?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Encroachment Fee | 20% of all revenue generated from any client in any territory outside of your Franchised Territory, payable to us or the franchisee whose territory was | As outlined in the Manuals. Currently, they are due 10 days after notice from us | Imposition of such fees are based upon the facts leading up to the alleged encroachment and the determination of whether to charge such fees will be at our sole discretion. |
Source: Item 6 — OTHER FEES (FDD pages 11–15)
What This Means (2025 FDD)
According to the 2025 Pearce Bespoke Franchise Disclosure Document, the encroachment fee is 20% of all revenue generated from any client in any territory outside of a franchisee's designated territory. This fee is payable either to Pearce Bespoke itself or to the franchisee whose territory was encroached upon.
The encroachment fee is determined based on the specific facts leading up to the alleged encroachment. The decision to charge this fee is at Pearce Bespoke's sole discretion. The due date for the encroachment fee is outlined in the Pearce Bespoke manuals and is currently 10 days after notice from Pearce Bespoke.
This policy is designed to protect franchisees' territories and compensate them if another franchisee or Pearce Bespoke itself encroaches on their territory. It also provides Pearce Bespoke with a source of revenue in cases where encroachment occurs and the fee is paid to them. Prospective franchisees should carefully review the Pearce Bespoke manuals to understand the specific circumstances under which encroachment fees are assessed and how they are calculated.