Can the franchised territory be altered in a renewed Pearce Bespoke Franchise Agreement?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
The transferee-franchisee enters into a written agreement in a form satisfactory to Franchisor assuming and agreeing to discharge all of Franchisee's obligations and covenants under this Agreement for the remainder of its term or, at Franchisor's option, executes Franchisor's then-current standard form of franchise agreement which may not contain any further rights of renewal, but may contain royalty rates and advertising contributions (which may be different than those contained in this Agreement), and an altered Franchised Territory;
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to Pearce Bespoke's 2025 Franchise Disclosure Document, the franchisor may alter the franchised territory in a renewed franchise agreement. Specifically, when a franchisee transfers their business to a new owner, the new franchisee may be subject to an altered franchised territory under the terms of the new agreement.
In the context of a transfer, the document states that the new franchise agreement "may contain royalty rates and advertising contributions (which may be different than those contained in this Agreement), and an altered Franchised Territory". This indicates that Pearce Bespoke retains the right to modify the territory as part of the new agreement during a transfer to a new franchisee.
While the FDD excerpt focuses on territory changes during a transfer, it does not explicitly address whether Pearce Bespoke can alter the territory when the original franchisee renews their agreement. Prospective franchisees should clarify with Pearce Bespoke the conditions under which the franchised territory could be changed upon renewal, as the document does not provide specific details on this scenario.