After the Pearce Bespoke franchise agreement expires or is terminated, for how long is the franchisee restricted from engaging in competitive activities?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee (and all Personal Guarantors and owners of all or part of Franchisee) will not, directly or indirectly, for a period of two (2) years after this Agreement expires or is terminated (except for a termination as a result of a Franchisor's breach), on their own account or as an employee,
consultant, partner, officer, director, or shareholder of any other person, firm, entity, partnership or corporation, own, operate, lease, franchise, conduct, engage in, be connected with, have any interest in or assist any person or entity engaged in any resale of a mobile business not offered by Pearce Bespoke involving the purchase and/or sale of custom clothing and accessories located within the Franchised territory within a ten (10) mile radius of the thereof or any Pearce Bespoke Franchise. Franchisee expressly agrees that the two (2) year period and the ten (10) mile radius are the reasonable and necessary time and distance needed to protect Franchisor if this Agreement expires or is terminated for any reason.
C. Extension During Breach.
Franchisee (and all Personal Guarantors and owners of all or part of Franchisee) acknowledge and agree that the two (2) year non-competition period set forth in Section 18(B) above will be extended for a period of time equal to the time during which the Franchisee is in breach of any of the provisions of Section 18(B).
D. Injunctive Relief.
Franchisee agrees that damages alone cannot adequately compensate Franchisor if there is a violation of these non-competition covenants, and Franchisee stipulates that Franchisor would be irreparably harmed by such a violation and that preliminary and permanent injunctive relief is essential and must be entered for the protection of Franchisor, and Franchisee hereby agrees to waive any and all defenses to the entry of such injunction(s). Preliminary and permanent injunctive relief will be entered by a court of competent jurisdiction enforcing the non-competition covenants without Franchisor posting any bond or security, in addition to all other remedies that may be available to Franchisor at equity or law.
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to Pearce Bespoke's 2025 Franchise Disclosure Document, a franchisee is restricted from competitive activities for two years after the franchise agreement expires or is terminated. This restriction applies to the franchisee, their personal guarantors, and owners. The restriction does not apply if the termination results from Pearce Bespoke's breach of the agreement.
The non-compete clause prevents the franchisee from owning, operating, leasing, franchising, conducting, engaging in, or having any interest in any business involving the purchase and sale of custom clothing and accessories. This restriction applies within the franchised territory and extends to a ten-mile radius of that territory or any Pearce Bespoke franchise.
Furthermore, if the franchisee breaches the non-competition agreement, the two-year non-competition period will be extended by a period equal to the duration of the breach. Pearce Bespoke can seek injunctive relief, including preliminary and permanent injunctions, to enforce the non-competition covenants, and the franchisee waives any defenses to such injunctions. This injunctive relief can be obtained without Pearce Bespoke needing to post a bond or security.