Is a franchise broker paid a fee for referring prospects to the Pearce Bespoke franchisor?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
Use of Franchise Brokers. The franchisor uses the services of franchise brokers to assist it in selling franchises. A franchise broker represents the franchisor and is paid a fee for referring prospects to the franchisor and/or selling the franchise. Carefully evaluate any information provided by a franchise broker about a franchise. Do your own investigation by contacting the franchisor's current and former franchisees to ask them about their experience with the franchisor.
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to the 2025 Pearce Bespoke Franchise Disclosure Document, Pearce Bespoke utilizes franchise brokers to aid in franchise sales. These brokers act as representatives of Pearce Bespoke and receive a fee for connecting potential franchisees with the company and/or successfully selling a franchise.
This arrangement is common in the franchise industry, as it allows franchisors to expand their reach and find qualified candidates more efficiently. However, it's important for prospective franchisees to be aware that the broker's primary allegiance is to the franchisor. Therefore, candidates should independently verify any information provided by the broker by contacting current and former Pearce Bespoke franchisees and conducting their own due diligence.
Prospective franchisees should carefully evaluate all information provided by franchise brokers and conduct thorough independent investigations before making any decisions. Contacting existing and former franchisees directly is crucial to gain a balanced perspective on the Pearce Bespoke franchise opportunity.