Does the Pearce Bespoke Franchise Agreement contain provisions allowing the establishment of franchisor-owned outlets?

According to the 2025 Pearce Bespoke Franchise Disclosure Document, the Franchise Agreement addresses the establishment of franchisor-owned outlets. Specifically, during the term of the agreement, Pearce Bespoke will not establish for its own account or franchise others to operate a Pearce Bespoke Franchise within the franchisee's Franchised Territory. However, Pearce Bespoke, its affiliates, or their licensees, retain the right to sell any products or services under other trademarks.

This provision offers a degree of territorial protection to the franchisee. It ensures that Pearce Bespoke will not directly compete with its own franchisees within their designated territory by opening company-owned stores or franchising additional units. This protection is a significant benefit, as it allows the franchisee to develop their business without direct competition from the franchisor itself.

However, it is important to note that this protection is not absolute. Pearce Bespoke, its affiliates, and licensees can still sell products or services under different trademarks, which could potentially compete with the franchisee's business. A prospective franchisee should carefully evaluate the potential impact of these competitive sales on their business before investing in a Pearce Bespoke franchise. Understanding the scope of these exceptions is crucial for assessing the true value of the territorial protection offered.