Is failure to abide by Pearce Bespoke’s standards and requirements in operating the Franchise considered a curable default?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise | Summary | |
|---|---|---|---|
| Agreement | |||
| a. | Length of the franchise | Section 2(A) | 10 years |
| b. | Renewal or extension of the term | Section 2(B) | If you meet the renewal requirements set forth in the Franchise Agreement, you can renew the Franchise Agreement for up to two additional 5-year period(s). |
| c. | Requirements for you to renew or extend | Section 2(B) | Provide advance notice in writing, sign then current Franchise Agreement, pay renewal fee, remodel, meet all current Brand Standards, secure extension of lease and be in compliance with current Franchise Agreement during the term of the Agreement. You may be asked to sign a Franchise Agreement with materially different terms and conditions than your original Franchise Agreement. The entire provision is subject to state law. |
| d. | Termination by you | Section 16(A) | If you are complying with the Franchise Agreement, and Pearce Bespoke fails to cure a material default within 30 days after Pearce Bespoke’s receipt of written notice, subject to state law. |
| e. | Termination by Pearce Bespoke without cause | Not Applicable | Not Applicable |
| f. | Termination by Pearce Bespoke with cause | Sections 15(A) and (B) | Pearce Bespoke can terminate the Franchise Agreement only if you default. Subject to state law. |
| g. | “Cause” defined – curable defaults | Sections 15(A) and (B) | You have 30 days to cure a violation of any material provision of the Franchise Agreement, non-payment of amounts owed to Pearce Bespoke or any applicable local advertising cooperative, failure to abide by Pearce Bespoke’s standards and requirements in operating the Franchise, an assignment of assets to creditors and the expiration or termination of the Franchise’s lease. Subject to state law. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 31–34)
What This Means (2025 FDD)
According to Pearce Bespoke's 2025 Franchise Disclosure Document, failure to abide by Pearce Bespoke’s standards and requirements in operating the Franchise is considered a curable default. Specifically, if a franchisee violates any material provision of the Franchise Agreement, including not adhering to Pearce Bespoke's operational standards, they have an opportunity to correct the issue.
The FDD states that a franchisee has 30 days to cure such a violation. This means that upon receiving notice from Pearce Bespoke regarding the failure to meet standards, the franchisee has a 30-day window to rectify the situation. This could involve implementing corrective measures, retraining staff, or making necessary changes to align with Pearce Bespoke's requirements.
It's important to note that this cure period is subject to state law, meaning the specific regulations in the franchisee's state may affect the cure process or timeline. If the franchisee successfully cures the default within the 30-day period, Pearce Bespoke cannot terminate the Franchise Agreement on those grounds. However, failure to cure within the allotted time may result in termination of the agreement, as per the terms outlined in Sections 15(A) and (B) of the Franchise Agreement.