What were the expenditures from the Pearce Bespoke Brand Fund during the 2024 Fiscal Year?

According to Pearce Bespoke's 2025 Franchise Disclosure Document, the company collected $19,054.12 in Brand Fund Payments during the 2024 fiscal year. However, Pearce Bespoke did not have any expenditures from the Brand Fund during that same fiscal year. This means that all the collected funds were retained by Pearce Bespoke and carried over for future use.

For a prospective franchisee, this information is crucial for understanding how Pearce Bespoke manages and utilizes the Brand Fund. Franchisees are required to pay a Brand Fund Fee of 2% of Gross Sales per week, which may increase up to a maximum of 3%. Knowing that no expenditures were made in 2024 despite collecting over $19,000 raises questions about the fund's purpose and how it will benefit franchisees.

It's important to note that Pearce Bespoke does not prepare a financial statement as to the collection and use of Brand Fund Fees, nor are the Brand Fund Fees audited. While Pearce Bespoke will provide an accounting of the most recently completed fiscal year at the franchisee's request, the lack of detailed financial reporting and auditing may be a concern. A prospective franchisee should inquire about Pearce Bespoke's plans for the accumulated Brand Fund Fees and the criteria used to determine when and how the funds will be spent on marketing and advertising initiatives.