Does a Pearce Bespoke franchisee have the authority to approve the annual budget of the Franchised Business?

According to the 2025 Pearce Bespoke Franchise Disclosure Document, a franchisee does not have the authority to approve the annual budget of their franchised business. The agreement states that the franchisee cannot obligate the franchisor for any expenses, liabilities, or other obligations without the franchisor's written approval, unless specifically provided for in the Franchise Agreement. This indicates that Pearce Bespoke retains control over financial obligations and budget approvals.

Pearce Bespoke requires franchisees to provide weekly gross sales statements, as well as quarterly and annual financial statements. These must be presented in the form that Pearce Bespoke requires. The franchisor also retains audit rights, suggesting they maintain oversight of the franchisee's finances. Franchisees must deliver quarterly financial information within 30 days of the quarter's end, and annual statements by March 1st for the preceding calendar year.

While the franchisee manages the day-to-day operations, they must adhere to the standards and requirements of the Pearce Bespoke Business System. This includes financial reporting and the inability to independently obligate the franchisor financially. The franchisor also has the right to increase the franchisee's minimum advertising expenditures up to 6% of gross sales with 30 days written notice, further demonstrating the franchisor's control over financial aspects of the franchise.

In practice, this means a prospective Pearce Bespoke franchisee should expect to operate within a budget framework set by the franchisor and will need to seek approval for financial decisions that could impact the franchisor. This is a fairly common arrangement in franchising, where franchisors maintain brand consistency and financial control across all locations.