What is the formula for calculating the Pearce Bespoke Renewal Fee if it exceeds $5,000?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
ion with any such audit are payable upon demand by Franchisee prior to the expiration of the then existing term, including any audit costs, transportation, lodging, meals, and any other expenses incurred.
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- Franchisee has paid a Renewal Fee equal to the greater of (i) Five Thousand Dollars ($5,00
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to Pearce Bespoke's 2025 Franchise Disclosure Document, franchisees have the option to renew their franchise for two additional five-year terms if they meet specific conditions. One of these conditions involves paying a renewal fee.
The renewal fee is calculated as the greater of two amounts: a flat $5,000 or 25% of the then-current initial franchise fee. This means that if 25% of the current initial franchise fee is more than $5,000, the franchisee will have to pay the higher amount as the renewal fee.
For a prospective Pearce Bespoke franchisee, this means that the renewal fee could change over time, depending on how the initial franchise fee is adjusted. It also means that the franchisee needs to be prepared to pay a potentially significant fee to renew their franchise agreement. Franchisees must also ensure they meet all other obligations, such as compliance with brand standards and completion of required upgrades, to qualify for renewal.