When are Pearce Bespoke encroachment fees due, according to the manuals?
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 Pearce Bespoke's 2025 Franchise Disclosure Document, encroachment fees are due as outlined in the manuals. Currently, these fees are due 10 days after notice from Pearce Bespoke. These fees are 20% of all revenue generated from any client in any territory outside of your Franchised Territory, payable to Pearce Bespoke or the franchisee whose territory was encroached.
The imposition of encroachment fees is based on the specific facts leading up to the alleged encroachment. The decision to charge these fees is at Pearce Bespoke's sole discretion. This means that while there is a defined structure for the fee (20% of revenue), the application of the fee depends on Pearce Bespoke's assessment of the situation.
For a prospective franchisee, this means that if a client is serviced outside of their territory, they may be required to pay 20% of the revenue generated from that client as an encroachment fee. It is important to understand the territories and how they are defined in the franchise agreement to avoid potential encroachment. Franchisees should also be aware that Pearce Bespoke has the final say on whether or not to impose these fees, so understanding the factors that influence this decision is crucial.