What is the franchisee acknowledging regarding representations made by 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 the 2025 FDD, a prospective Pearce Bespoke franchisee acknowledges several key points regarding the franchised territory and the representations made by Pearce Bespoke. First, the franchisee agrees that the territory was mutually decided upon by both the franchisee and Pearce Bespoke.
Second, the franchisee confirms 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 effective date of the agreement. This implies the franchisee is responsible for assessing the market potential and feasibility of the location.
Finally, 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, either express or implied, that the Pearce Bespoke franchise will be profitable or successful in that territory. Furthermore, this agreement does not create any liability for Pearce Bespoke regarding the franchise's performance. This is a standard clause in franchise agreements, emphasizing that the franchisee bears the ultimate risk for the business's success.