Must a Pearce Bespoke franchisee be in compliance with the current Franchise Agreement during the term of the agreement to be eligible for renewal?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
visions in the agreements attached to this Disclosure Document.**
A. Franchise Agreement
| Provision | Section in Franchise | Summary | |
|---|---|---|---|
| Agreement | |||
| a. | Length of the franchise | Section 2(A) | 10 years |
| b. | Renewal or extension of the term | Section 2(B) | If you meet the renewal requirements set forth in the Franchise Agreement, you can renew the Franchise Agreement for up to two additional 5-year period(s). |
| c. | Requirements for you to renew or extend | Section 2(B) | Provide advance notice in writing, sign then current Franchise Agreement, pay renewal fee, remodel, meet all current Brand Standards, secure extension of lease and be in compliance with current Franchise Agreement during the term of the Agreement. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 31–34)
What This Means (2025 FDD)
According to Pearce Bespoke's 2025 Franchise Disclosure Document, a franchisee must be in compliance with the current Franchise Agreement during the term of the agreement to be eligible for renewal. Specifically, to renew the Franchise Agreement for up to two additional 5-year periods, the franchisee must meet several requirements.
These requirements include providing advance written notice, signing the then-current Franchise Agreement, paying a renewal fee, completing any required remodeling, and meeting all current Brand Standards. Most importantly, the franchisee must be in compliance with the current Franchise Agreement during its entire term.
This condition is fairly standard in franchising, as franchisors want to ensure that franchisees who continue to operate under their brand are adhering to the established standards and practices. Failing to comply with the Franchise Agreement during the term could prevent a franchisee from being able to renew their agreement, effectively ending their ability to operate the Pearce Bespoke franchise.