What is the franchisee acknowledging regarding the lack of reliance on any implied guarantee from Pearce Bespoke?
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.
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to Pearce Bespoke's 2025 Franchise Disclosure Document, a prospective franchisee acknowledges several key points regarding their territory and the potential success of their franchise. Specifically, the franchisee acknowledges that the territory was mutually agreed upon between them and Pearce Bespoke.
The franchisee also acknowledges that they conducted their own due diligence regarding potential customers and other factors relevant to operating a Pearce Bespoke franchise in the designated territory before the agreement's effective date. This implies that the franchisee is responsible for assessing the market and potential profitability of the location.
Most importantly, the franchisee acknowledges that Pearce Bespoke's agreement to the territory is simply permission to operate there. It does not constitute any representation, promise, warranty, or guarantee, whether express or implied, that the Pearce Bespoke franchise will be profitable or successful. Furthermore, this agreement does not create any liability for Pearce Bespoke regarding the franchise's performance in that territory. This means the franchisee bears the full risk of the business's success or failure, and cannot hold Pearce Bespoke accountable for any losses incurred.