What fees are deducted from the Net Sales paid to the Franchisee by Pearce Bespoke?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
On a weekly basis, Franchisor will calculate the Gross Sales, Net Sales, and Credit Card Sales (as defined below) generated from the operation of Franchisees Pearce Bespoke Business. Certain fees are payable based upon Gross Sales or Credit Card Sales. On a weekly basis, Franchisor will provide a report to Franchisee, on the Gross Sales, Net Sales, and Credit Card Sales from Franchisee's Business. Franchisor will pay Franchisee, by EFT, ACH, direct deposit, or a similar means, the Net Sales generated from Franchisee's Business during the previous calendar week minus: (i) all fees, including Royalty Fee, Brand Fund Fee, POS System Subscription Fee, and Technology Fee as detailed in and permitted by this Agreement; (ii) amounts owe by Franchisee to Franchisor or its affiliates for purchases of supplies permitted by and in accordance with the terms of this Agreement; and (iii) any other monetary obligation that Franchisee has to Franchisor or its affiliates, or any approved suppliers that Franchisor has been made aware of prior to the date that Franchisor would have to make a payment to on Franchisee's behalf, which is permitted by and in accordance with the terms of this Agreement (the "Franchisee Share").
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to Pearce Bespoke's 2025 Franchise Disclosure Document, the franchisor calculates Gross Sales, Net Sales, and Credit Card Sales weekly and provides a report to the franchisee. The franchisee is paid the Net Sales generated from their business during the previous week, but from this amount, Pearce Bespoke deducts several items.
The deductions include all fees such as the Royalty Fee, Brand Fund Fee, POS System Subscription Fee, and Technology Fee, as detailed and permitted by the Franchise Agreement. Additionally, Pearce Bespoke deducts amounts owed by the franchisee to the franchisor or its affiliates for purchases of supplies, as permitted by the agreement.
Finally, any other monetary obligation that the franchisee owes to Pearce Bespoke, its affiliates, or any approved suppliers (of which Pearce Bespoke has been made aware before the payment date) will also be deducted from the Net Sales. The remaining amount after these deductions is referred to as the "Franchisee Share."