Does a Pearce Bespoke franchisee have control over the bank accounts of the Franchised Business?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
iabilities, or other obligations, other than specifically provided in this Agreement.
12. SALES REPORTS, FINANCIAL STATEMENTS AND AUDIT RIGHTS
A. Sales Reports.
Franchisee will maintain an accurate written record of daily Gross Sales and will deliver to Franchisor a signed and verified statement of the weekly Gross Sales of Franchisee's business using such forms and methods as Franchisor may require in writing. The weekly statement of Gross Sales must be provided to Franchisor on or before Wednesday of each week for the preceding week. Franchisor reserves the right to modify or substitute the required forms and methods and impose additional recordkeeping procedures.
B. Financial Statements.
Franchisee will, at its expense, provide Franchisor with quarterly and annual financial statements and such other financial reports as Franchisor specifies using the forms and chart of accounts Franchisor requires. All financial information provided to Franchisor under this Section must be presented in the form Franchisor periodically requires in writing. Franchisee will deliver the quarterly financial information to Franchisor by the thirtieth (30th) day of the month following the end of the preceding quarter. The annual financial statement must be provided on or before March 1 of each year for the preceding calendar year.
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, the Pearce Bespoke franchise agreement outlines certain financial reporting obligations for franchisees. Specifically, franchisees must maintain accurate daily records of Gross Sales and provide a signed, verified weekly statement of Gross Sales to Pearce Bespoke by Wednesday of each week for the preceding week. Pearce Bespoke retains the right to modify the forms and methods used for these reports and can impose additional record-keeping procedures.
Furthermore, Pearce Bespoke franchisees are required to provide quarterly and annual financial statements at their own expense, using the forms and chart of accounts specified by Pearce Bespoke. Quarterly financial information must be submitted by the 30th day of the month following the end of the quarter, while annual statements are due by March 1st for the preceding calendar year. The FDD does not explicitly state who controls the bank accounts of the Franchised Business.
While the FDD excerpts detail the financial reporting requirements and the franchisor's access to franchisee financial data, it does not specify who has control over the bank accounts of the Pearce Bespoke Franchised Business. A prospective franchisee should seek clarification from Pearce Bespoke regarding the control and management of bank accounts, including who has signature authority and how funds can be accessed and utilized.