What is the exception to the 'in operation' requirement for a Pearce Bespoke Mobile Franchise after a destruction event?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
If a Mobile Franchise is closed due to a Destruction Event, the Mobile Franchise will continue to be deemed "in operation" for the purpose of this Agreement for up to 30 days after the Destruction Event occurs. If a Mobile Franchise (i) is closed in a manner other than those described in this Section 3.2 or as otherwise agreed by us in writing or (ii) fails to reopen within 30 days after a Destruction Event, then we may exercise our rights under Section 6.2 (Our Remedies). In the event the Operating Assets are completely destroyed or otherwise incapable of being repaired following a Destruction Event, we will not exercise the remedies set forth under Section 6.2 provided, that (a) within the 30 days after the Destruction Event you have made arrangements with us or our designated supplier to obtain new Operating Assets for use in your Business; and (b) you are open and operating your Mobile Franchise in the protected territory within ninety (90) days of the Destruction Event.
Source: Item 23 — RECEIPTS (FDD pages 39–172)
What This Means (2025 FDD)
According to Pearce Bespoke's 2025 Franchise Disclosure Document, a mobile franchise that has suffered a destruction event, meaning its equipment or vehicles are destroyed or damaged beyond the franchisee's control, will still be considered 'in operation' under certain conditions. This provides a temporary reprieve from the standard operational requirements.
Specifically, Pearce Bespoke will not exercise its remedies if the operating assets are completely destroyed or irreparable, provided the franchisee meets two key requirements. First, within 30 days of the destruction event, the franchisee must arrange with Pearce Bespoke or its designated supplier to obtain new operating assets. Second, the franchisee must reopen and operate the mobile franchise within 90 days of the destruction event.
This exception offers a significant benefit to franchisees facing unforeseen disasters. It allows them time to recover and rebuild their business without immediately triggering penalties or termination of the franchise agreement. However, franchisees must act quickly to secure new assets and resume operations within the specified timeframes to maintain this 'in operation' status and avoid potential repercussions from Pearce Bespoke.