Where can I find information about the non-competition covenants for Pearce Bespoke?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise | Summary | |
|---|---|---|---|
| q. | Non-competition covenants during the term of the franchise | Section 18(A) | No direct or indirect involvement in any resale mobile business involving the purchase and/or sale of custom clothing and accessories other than the one authorized in the Franchise Agreement, without Pearce Bespoke’s prior written consent, subject to state law. |
| r. | Non-competition covenants after the franchise is terminated or expires | Sections 18(B) and (C) | No direct or indirect involvement in any resale mobile business involving the purchase and/or sale of custom clothing and accessories for 2 years within 10 miles of the Franchise or any other Pearce Bespoke Franchise. If the franchisee is in breach of this provision, the noncompetition period will be extended for a period of time equal to the time the franchisee operated a competing business, subject to state law. |
| q. Non-competition covenants | Section 8 | The non-competition covenants in your Franchise | |
| during the term | Agreement shall apply to your Development Agreement | ||
| r. Non-competition covenants after the Franchise Agreement is terminated or expires | Section 8 | The non-competition covenants in your Franchise Agreement shall apply to your Development Agreement. |
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, details regarding non-competition covenants can be found in Section 18 of the Franchise Agreement and Section 8 of the Development Agreement.
Specifically, during the term of the franchise, Section 18(A) of the Franchise Agreement states that franchisees cannot be directly or indirectly involved in any resale mobile business involving the purchase and/or sale of custom clothing and accessories other than the one authorized in the Franchise Agreement, without Pearce Bespoke’s prior written consent. This is subject to state law. After the franchise is terminated or expires, Sections 18(B) and (C) stipulate that franchisees cannot be directly or indirectly involved in any resale mobile business involving the purchase and/or sale of custom clothing and accessories for 2 years within 10 miles of the Franchise or any other Pearce Bespoke Franchise. If a franchisee breaches this provision, the non-competition period will be extended for a period of time equal to the time the franchisee operated a competing business, also subject to state law.
For franchisees entering into a Development Agreement with Pearce Bespoke, Section 8 states that the non-competition covenants outlined in the Franchise Agreement also apply to the Development Agreement. This means that both during the term of the agreement and after termination or expiration, the restrictions on involvement in similar businesses apply, as detailed in the Franchise Agreement. Prospective franchisees should carefully review these sections of both agreements to fully understand the scope and duration of these non-competition covenants and how they might impact their business activities, both during and after the franchise relationship.