What does the Pearce Bespoke franchisee acknowledge regarding the potential volume of the Pearce Bespoke business?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee acknowledges that (i) the Territory was mutually agreed upon by Franchisor and Franchisee, (ii) prior to the Effective Date hereof, Franchisee conducted Franchisee's own due diligence with regard to potential customers and other matters relative to the operation of the Pearce Bespoke Franchise in the Territory, and (iii) Franchisor's agreement to the Territory is permission only, does not constitute a representation, promise, warranty, or guarantee, express or implied, by Franchisor that the Pearce Bespoke Franchise operated therein will be profitable or otherwise successful, and cannot, and does not, create any liability for Franchisor. During the term of this Agreement, Franchisor will not establish for its own account or franchise others the right to operate a Pearce Bespoke Franchise within the Franchised Territory. Franchisee understands, however, that Franchisor, its affiliates, or their licensees, may sell any products or services under trademarks or
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to the 2025 Pearce Bespoke Franchise Disclosure Document, a prospective franchisee acknowledges several key aspects regarding the potential business volume and success of their franchise. Specifically, the franchisee acknowledges that the territory granted to them was mutually agreed upon with Pearce Bespoke, and that they (the franchisee) conducted their own due diligence regarding potential customers and other factors relevant to operating the franchise within that territory before the agreement's effective date.
Furthermore, the franchisee understands that Pearce Bespoke's agreement to the territory is simply permission to operate there. It does not constitute any representation, promise, warranty, or guarantee, either express or implied, that the Pearce Bespoke franchise will be profitable or successful in that territory. This acknowledgment also clarifies that Pearce Bespoke cannot be held liable if the franchise does not perform as expected.
This is a standard clause in franchise agreements, intended to ensure that franchisees understand the risks involved in starting a business and that the franchisor is not responsible for guaranteeing their success. It emphasizes the importance of the franchisee's own market research and business acumen in determining the viability of the Pearce Bespoke franchise in their chosen territory. While Pearce Bespoke will not establish another franchise within the franchisee's territory, this clause underscores that the franchisee bears the ultimate responsibility for assessing and managing the potential business volume and profitability of their location.