Where in the Pearce Bespoke Franchise Agreement can I find information about post-termination obligations?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 22: CONTRACTS]
17. FRANCHISEE'S OBLIGATIONS UPON TERMINATION
A. Post-Term Duties.
If this Agreement is terminated for any reason, Franchisee will: (1) within five (5) days after termination, pay all amounts due and owing to Franchisor or suppliers under this Agreement; (2) return by first class prepaid United States mail or at Franchisor's sole discretion, destroy and confirm destruction thereof to Franchisor the all equipment, Manuals any other manuals, advertising materials, all other printed materials or assets relating to the operation of the franchised business; (3) assign to Franchisor or, at Franchisor's discretion, disconnect the telephone number for the Pearce Bespoke Franchise; and (4) remove all signs and other materials bearing the name "Pearce Bespoke" and other Marks; (5) disconnect any internet website Franchisee has established in connection with Franchisee's operation of the Pearce Bespoke Franchise; and (6) comply with all other applicable provisions of this Agreement, including the non-compete provisions. Upon termination of this Franchise Agreement for any reason, Franchisee's right to use the name "Pearce Bespoke" and the other Marks and the Business System will immediately terminate. If Franchisee fails to remove all signs and other materials bearing the Marks, Franchisor may do so at Franchisee's expense.
18. FRANCHISEE'S COVENANTS NOT TO COMPETE
A. During Term.
[Item 22: CONTRACTS]
18. FRANCHISEE'S COVENANTS NOT TO COMPETE
A. During Term.
During the term of the Franchise Agreement, Franchisee will receive proprietary information, materials, and trade secrets specifically geared to and utilized in the Pearce Bespoke tailoring business operations for all of Franchisor's franchised brands. To protect the valuable proprietary information and prevent Franchisee from using that information to operate a business that competes with any of Franchisor's clothing brands, Franchisee (and all Personal Guarantors and owners of all or part of Franchisee) will not, during the term of this Agreement, on their own account or as an employee, agent, 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 Pearce Bespoke clothing business not offered by Pearce Bespoke involving the purchase and/or sale of custom clothing and accessories, without Franchisor's prior written consent**.**
B. After Termination.
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,
| 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.
Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 20–21)
What This Means (2025 FDD)
According to the 2025 Pearce Bespoke Franchise Disclosure Document, details regarding the franchisee's obligations after the termination of the franchise agreement can be found in Sections 17 and 18. Specifically, Section 17(A) outlines the franchisee's post-term duties, including financial obligations, the return or destruction of materials, and the removal of Pearce Bespoke signage. Section 18(B) details the non-compete covenants that apply after the termination of the franchise agreement.
Section 17(A) specifies that within five days of termination, the franchisee must pay all outstanding amounts to Pearce Bespoke or its suppliers. The franchisee is also required to return or destroy all equipment, manuals, advertising materials, and other printed materials related to the franchise. Additionally, the franchisee must assign or disconnect the Pearce Bespoke franchise telephone number and remove all signs and materials bearing the Pearce Bespoke name and marks. The franchisee must also disconnect any internet website established for the franchise and comply with all other applicable provisions of the agreement, including non-compete provisions.
Section 18(B) states that for two years after the agreement expires or is terminated (except in cases of termination due to Pearce Bespoke's breach), the franchisee, along with any personal guarantors and owners, cannot be directly or indirectly involved in any business involving the purchase and/or sale of custom clothing and accessories. This restriction applies to their own account or as an employee, agent, consultant, partner, officer, director, or shareholder of any other person or entity. A summary of these provisions is also available in Item 17 of the FDD, which refers to Sections 18(B) and (C) of the Franchise Agreement for non-competition covenants after termination or expiration.