Can Pearce Bespoke establish franchises or company-owned outlets outside the Development Area?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
- 4.2 No Other Restriction On Us.
Except as expressly provided in Section 4.1 or any other agreement between the parties, we and our affiliates retain the right, in our sole discretion, to conduct any business activities, under any name, in any geographic area, and at any location, regardless of the proximity to or effect on your Business.
For example, we and our affiliates have the right to:
(a) Establish or license franchises and/or company-owned outlets or other facilities or businesses offering similar or identical products, services, and classes and using the System or elements of the System (i) under the Marks anywhere outside of the Development Area or (ii) under names, symbols, or marks other than the Marks anywhere, including inside and outside of the Development Area;
(b) Sell or offer, or license others to sell or offer, any products or services using the Marks or other marks through any alternative distribution channels, including, without limitation, through e-commerce, in retail stores, via recorded media, via online videos, or via broadcast media, anywhere, including inside and outside of the Development Area;
(c) Advertise, or authorize others to advertise anywhere, using the Marks;
Source: Item 23 — RECEIPTS (FDD pages 39–172)
What This Means (2025 FDD)
According to Pearce Bespoke's 2025 Franchise Disclosure Document, Pearce Bespoke retains the right to establish or license franchises and/or company-owned outlets offering similar products or services under the Pearce Bespoke brand outside of a franchisee's Development Area. They can also operate similar businesses under different names both inside and outside the Development Area. This clause protects Pearce Bespoke's ability to grow and adapt its business model without being restricted by individual Development Area agreements.
This means that while a Pearce Bespoke franchisee is granted a Development Area, Pearce Bespoke is not restricted from opening competing businesses outside of that area. This could potentially impact a franchisee if Pearce Bespoke opens a new location nearby, although it would be outside their protected territory.
Pearce Bespoke also retains the right to sell products or services through alternative channels, such as e-commerce or retail stores, using the Pearce Bespoke brand or other brands, both inside and outside the Development Area. They can also advertise anywhere using the Pearce Bespoke marks. This broad reservation of rights gives Pearce Bespoke significant flexibility in how it conducts its business and expands its reach, which could be a consideration for potential franchisees focused on the exclusivity of their market.