Can Pearce Bespoke establish other franchises within a franchisee's Franchised Territory?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
nd you may not relocate the Franchise without obtaining our prior written consent.
Pearce Bespoke will not establish another franchised or company-owned Pearce Bespoke Franchise in your Franchised Territory. Pearce Bespoke has established a Pearce Bespoke e-commerce site on the internet. Although Pearce Bespoke does not do so as of the issuance date of this Disclosure Document, Pearce Bespoke reserves the right to distribute products through alternative channels of distribution, including the internet (or any other existing or future form of electronic commerce), using the Marks inside or outside of the Franchised Territory. Pearce Bespoke also reserves the right to distribute products through alternative channels of distribution or establish franchised or company-owned businesses selling similar products or services under a trademark differentfrom the Marksinside or outside ofthe Franchised Territory. Neither we or our affiliates operate, nor do we or our affiliates plan to operate or franchise businesses under a different trademark that will sell goods or services that are the same or similar to those that you will sell.
You will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control. If we or our affiliates solicit or accept orders within your territory, we are not required to provide any compensation.
You may not advertise, market, solicit, sell, or service customers outside your Franchised Territory ("Non-Exclusive Customers"), unless you are solicited or have a prior verifiable relationship with the Non-Exclusive Customer. Even if you sell to a Non-Exclusive Customer, you must pay us or the incumbent franchise owner an encroachment fee of twenty percent (20%) of the Gross Sales attributed to the Non-Exclusive Customers sales outside of your Franchised Territory ("Encroachment Fee").
You may not use alternative channels of distribution, including the internet, catalog sales, telemarketing, or other direct marketing methods to make sales inside or outside your Franchised Territory unless specifically authorized by Pearce Bespoke.
Pearce Bespoke You need to achieve specified Gross Sales to retain the Franchised Territory ("Minimum Performance Standard(s)"). Following the execution of the Franchise Agreement, the Minimum Performance Standard
2025 FDD 27
| Period Following Original | Minimum Gross Sales | |
|---|---|---|
| Opening Date | ||
| Year 1 | $50,000 | |
| Year 2 | $75,000 | |
| Year 3 | $100,000 | |
| Year 4+ | 10% increase over previous year minimum | You are required to make certain minimum weekly royalty paymentsto retain the Franchised Territory under the Franchise Agreement ("Minimum Royalty Payment(s)"). Following the execution of the Franchise Agreement, the Minimum Royalty Payment schedule is as follows: |
| Period Following Original | Minimum Royalty Payment | |
|---|---|---|
| Opening Date | ||
| Year 1 | $100 per week | |
| Year 2 | $150 per week | |
| Year 3 | $200 per week | |
| Year 4+ | 10% increase over previous year minimum | Pearce Bespoke reserves the right to sell at all conventions, conferences, and other trade centers both domestically in the United States and internationally to market and sell its services solely or jointly with any of its franchisees. We reserve the rights to offer (i) other services and products not offered under the Marks, (ii) other quality custom clothing and accessories concepts or products under the Marks or other trademarks, and (iii) products or services through other channels of distribution in the Franchised Territory including, but not limited to, co-branding with other quality custom clothing and accessories businesses, and products offered through retail stores, the Internet or direct marketing. You will receive no compensation for our sales through alternative distribution channels in the Franchised Territory. |
Pearce Bespoke may from time to time enter into agreements to provide services to customers as part of a national, regional, or key account program ("Key Accounts") at locations within the Franchised Territory. You must accept and perform the terms of such agreements (including, without limitation, special pricing, payment terms, timing of services, and central invoicing) with respect of locations within the Franchised Territory. If you refuse to perform the required services or we determine that your Franchise is not qualified, interested, able, or available to perform the services, you are required to allow either our employee(s) or another franchisee to enter the Franchised Territory to perform the required services. In the case of an agreement under which the customer will pay a fixed amount for services at all locations listed in the agreement, we may allocate the fixed amount among the businesses performing the services.
You may not offer products or services through any channel other than those we have expressly approved. If you request approval of any other distribution channel or type of outlet, we will consider the factors we deem appropriate, which may include the time you have been operating the Franchise, your sales volume, whether you have met quality standards and other benchmarks, and other standards that we may determine in our sole discretion.
Source: Item 12 — TERRITORY (FDD pages 27–29)
What This Means (2025 FDD)
According to Pearce Bespoke's 2025 Franchise Disclosure Document, Pearce Bespoke will not establish another franchised or company-owned Pearce Bespoke franchise in a franchisee's designated territory. However, the territory granted to Pearce Bespoke franchisees is not exclusive. This means a franchisee may face competition from other franchisees, company-owned outlets, other distribution channels, or competitive brands controlled by Pearce Bespoke.
Pearce Bespoke retains the right to distribute products through alternative channels, including the internet or any other form of electronic commerce, both inside and outside the Franchised Territory. They also reserve the right to distribute products through alternative channels or establish franchised or company-owned businesses selling similar products or services under a different trademark. If Pearce Bespoke or its affiliates solicit or accept orders within a franchisee's territory, they are not required to provide any compensation to the franchisee.
Pearce Bespoke also reserves the right to sell at conventions, conferences, and other trade centers domestically and internationally. They can offer other services and products not offered under the Pearce Bespoke marks, as well as other custom clothing and accessories concepts under the marks or other trademarks. These can be offered through other channels of distribution in the Franchised Territory, including co-branding, retail stores, the Internet, or direct marketing, without compensating the franchisee. Pearce Bespoke may also enter into agreements to provide services to customers as part of national, regional, or key account programs within the Franchised Territory, which the franchisee must accept and perform.
Furthermore, Pearce Bespoke will not grant franchisees any options, rights of first refusal, or similar rights to acquire additional franchises within a particular territory. Franchisees are also required to meet certain minimum performance standards to retain their Franchised Territory. These standards include achieving specified Gross Sales, such as $50,000 in Year 1, $75,000 in Year 2, $100,000 in Year 3, and a 10% increase over the previous year's minimum in Year 4 and beyond. Franchisees must also make minimum weekly royalty payments, starting at $100 per week in Year 1, $150 per week in Year 2, $200 per week in Year 3, and a 10% increase over the previous year's minimum in Year 4 and beyond.