Does the Pearce Bespoke franchise agreement contain a liquidated damages clause?

According to the 2025 Pearce Bespoke Franchise Disclosure Document, the franchise agreement's Item 22 discusses contracts, but does not explicitly mention a liquidated damages clause. However, the document does state that any requirement to consent to liquidated damages or termination penalties shall not apply to the extent prohibited by the NDFIL (North Dakota Franchise Investment Law). This suggests that while the Pearce Bespoke agreement might contain language that could be interpreted as liquidated damages, its enforceability is limited by North Dakota law for franchisees in that state.

Instead of liquidated damages, the Pearce Bespoke franchise agreement focuses on injunctive relief and actual damages. Specifically, the agreement states that in the event of a breach of certain sections, Pearce Bespoke may seek a temporary, preliminary, or permanent injunction without needing to show actual damage or post a bond. Additionally, the agreement includes a waiver of punitive or exemplary damages, limiting each party to the recovery of actual damages sustained in the event of a dispute.

For prospective franchisees, this means that Pearce Bespoke emphasizes preventing harm through court orders rather than pre-determined damage amounts. The waiver of punitive damages aims to limit financial exposure to actual losses incurred. Franchisees should be aware that while they may not face liquidated damages in most states, they could be subject to injunctive relief and be responsible for the other party's attorney's fees if they do not prevail in a dispute.

It is important for potential Pearce Bespoke franchisees to consult with a legal professional to fully understand the implications of these clauses and how they apply in their specific state, especially regarding the enforceability of any provisions that might resemble liquidated damages under local franchise laws.