Who does a franchise broker represent when assisting in the sale of a Pearce Bespoke franchise?
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, franchise brokers used by Pearce Bespoke represent the franchisor, not the prospective franchisee. Pearce Bespoke pays these brokers a fee for referring potential franchisees and/or successfully selling a franchise.
This arrangement means that the broker's primary allegiance is to Pearce Bespoke, which is crucial for a prospective franchisee to understand. Franchise brokers are incentivized to promote the franchisor's interests, which may not perfectly align with the franchisee's. Therefore, any information provided by a broker should be carefully evaluated and verified through independent investigation.
Pearce Bespoke advises prospective franchisees to conduct their own due diligence by contacting current and former franchisees. This direct communication can provide a balanced perspective on the franchise opportunity, helping potential franchisees make informed decisions that are not solely reliant on the broker's representation of Pearce Bespoke.