What is the franchisee acknowledging regarding the business risks associated with a Pearce Bespoke franchise?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
- Franchisee has conducted an independent investigation of the business contemplated by this Agreement and understands and acknowledges that the business contemplated by this Agreement involves business risks making the success of the venture largely dependent upon the business abilities and participation of Franchisee and its efforts as an independent business operation.
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- 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.
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- Franchisee has no knowledge of any representations by Franchisor or its officers, directors, shareholders, employees, sales representatives, agents or servants, about the business contemplated by the Franchise
Agreement that are contrary to the terms of the Franchise Agreement or the documents incorporated herein. Franchisee acknowledges that no representations or warranties are made or implied, except as specifically set forth in the Franchise Agreement. Franchisee represents, as an inducement to Franchisor's entry into this Agreement, that it has made no misrepresentations in obtaining the Franchise Agreement.
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- Franchisor expressly disclaims the making of, and Franchisee acknowledges that it has not received or relied upon, any warranty or guarantee, express or implied, as to the potential volume, profits or success of the business venture contemplated by the Franchise Agreement.
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- Franchisee acknowledges that Franchisor's approval or acceptance of Franchisee's Business location does not constitute a warranty, recommendation, or endorsement of the location for the Franchised Business, nor any assurance by Franchisor that the operation of the Franchised Business at the premises will be successful or profitable.
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- Franchisee acknowledges that it has received the Pearce Bespoke Franchising, LLC Franchise Disclosure Document with a complete copy of the Franchise Agreement and all related Attachments and agreements at least fourteen (14) calendar days prior to the date on which the Franchise Agreement was executed. Franchisee further acknowledges that Franchisee has read such Franchise Disclosure Document and understands its contents.
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 understandings regarding the business risks and their own responsibilities. The franchisee confirms they have conducted an independent investigation of the business and recognize that the success of the Pearce Bespoke venture is heavily dependent on their own business abilities, participation, and efforts as an independent business operator. This highlights that Pearce Bespoke does not guarantee success solely by virtue of its brand or system.
Furthermore, the franchisee acknowledges that Pearce Bespoke has not made any claims of guaranteed success or failure prior to the signing of the Franchise Agreement. This reinforces the understanding that the franchisee is entering the agreement based on their own assessment and due diligence, not on any promises from the franchisor. The franchisee also agrees that the Franchise Agreement encompasses all oral and written agreements between the parties, superseding any prior contracts and preventing oral modifications.
Additionally, the franchisee confirms they are not aware of any representations made by Pearce Bespoke or its representatives that contradict the terms of the Franchise Agreement. The franchisee acknowledges that Pearce Bespoke expressly disclaims any warranty or guarantee regarding the potential volume, profits, or success of the business venture. This underscores the risk inherent in any new business and the importance of the franchisee's own efforts in achieving profitability. The franchisee also acknowledges that the franchisor's approval of the business location does not guarantee success or profitability at that location.
Finally, the franchisee acknowledges receipt of the Franchise Disclosure Document, including the Franchise Agreement and related attachments, at least 14 calendar days before signing. They also confirm they have read and understand the contents of the FDD. This acknowledgement is a standard legal protection for franchisors, ensuring that franchisees have had adequate time to review the terms and conditions of the franchise agreement before committing to the investment.