What is the Pearce Bespoke franchisee acknowledging by initialing paragraph 3 regarding claims of success or failure?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
- Franchisee agrees that no claims of success or failure have been made to it or him or her prior to signing the Franchise Agreement and that it/she/he understands all the terms and conditions of the Franchise Agreement. Franchisee further acknowledges that the Franchise Agreement contains all oral and written agreements, representations and arrangements between the parties hereto, and any rights which the respective parties hereto may have had under any other previous contracts are hereby cancelled and terminated, and that this Agreement cannot be changed or terminated orally.
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to the 2025 Pearce Bespoke Franchise Disclosure Document, by initialing paragraph 3 of Item 22, the franchisee is acknowledging that no claims about the potential success or failure of the franchise have been made to them prior to signing the Franchise Agreement. This means Pearce Bespoke has not provided any guarantees or assurances regarding profitability or performance.
Furthermore, the franchisee is agreeing that the Franchise Agreement encompasses all understandings between the franchisee and Pearce Bespoke, superseding any prior oral or written agreements. This clause ensures that the written contract is the definitive source of the agreement's terms. It also specifies that the agreement cannot be altered or terminated verbally, reinforcing the importance of written documentation for any changes.
This acknowledgement is a standard legal protection for Pearce Bespoke, preventing franchisees from later claiming they were misled by verbal promises or representations not included in the written agreement. Prospective franchisees should carefully review the entire Franchise Agreement and rely only on the documented terms, seeking clarification on any points of concern before signing.