What is the franchisee expected to conform to when operating a Pearce Bespoke Franchise?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
and supervision Franchisor provides to all franchisees, for additional agreed upon compensation.
Pearce Bespoke 2025 Franchise Agreement xv
8. OPERATION OF THE FRANCHISEE'S BUSINESS
The Marks and Business System licensed to Franchisee represent valuable goodwill distinctive of Franchisor's business and reputation. Franchisor will periodically develop uniform standards of quality and service regarding the business operations of the Pearce Bespoke Franchise so as to protect (for the benefit of all franchisees and Franchisor) the distinction, valuable goodwill, and uniformity represented and symbolized by the Marks and Business System. To ensure that all franchisees will maintain the uniform requirements and brand standards for goods and services associated with the Pearce Bespoke Franchises and with the Marks and Business System, Franchisee will maintain the uniformity and brand standards Franchisor reasonably requires for all products and services and agrees to the following provisions:
A. Managerial Responsibility.
During the term of this Agreement, the parties who have signed this Agreement on behalf of Franchisee will personally manage and operate Franchisee's business and will not, without Franchisor's prior written consent, delegate its authority and responsibility with respect to management and operation. If Franchisee is a corporate entity or a partnership, one individual will retain at least fifty percent (50%) of the equity and voting interest in such corporation or partnership and will be obligated to personally manage and operate the Franchisee's business.
B. Design and Appearance.
The design and appearance of the Pearce Bespoke Franchise, including signage, are part of the Business System. It is essential to the integrity of Franchisor's Business System that as great a degree of uniformity as possible be maintained among Pearce Bespoke franchisees. Without limitation to anything provided for in this Agreement, Franchisee agrees that only such signs, emblems, logos, lettering, and artwork as Franchisor may require or periodically provide will be displayed by the Pearce Bespoke Franchise. Franchisee must follow Franchisor's current standards regarding the design and appearance.
C. General Operation.
Franchisee will use the Marks and Business System in strict compliance with the standards, operating procedures, specifications, requirements, and instructions required of all Pearce Bespoke franchisees, which Franchisor may periodically amend and supplement. Any required standards exist to protect Franchisor's interests in the Business System and the Marks and not for the purpose of establishing any control or duty to take control over those matters that are reserved to Franchisee. The required standards generally will be set forth in the Operations Manual or other written materials. The Operations Manual also will include guidelines or recommendations in addition to required standards. In some instances, the required standards will include recommendations or guidelines to meet the required standards. Franchisee may follow the recommendations or guidelines or some other suitable alternative, provided Franchisee meets and complies with the required standards. In other instances, no suitable alternative may exist. In order to protect Franchisor's interests in the Business System and Marks, Franchisor reserves the right to determine if Franchisee is meeting a required standard and whether an alternative is suitable to any recommendations or guidelines.
D. Products and Services.
Franchisee will sell only those categories of products and services Franchisor approves in writing and will offer for sale all categories of products and services required by Franchisor from time to time. Franchisee will conform to all quality and customer service standards Franchisor requires in writing. Franchisee will purchase only such types, models or brands of items, furniture, equipment, signs, and supplies that Franchisor approves for Pearce Bespoke as meeting its specifications and standards, including specifications and standards for quality, design, warranties, appearance, function, and performance. Franchisee acknowledges and agrees that such items shall be purchased only from sources, manufacturers, or suppliers approved in writing by Franchisor (which sources or suppliers may include Franchisor or affiliates of Franchisor). FRANCHISOR DISCLAIMS ALL WARRANTIES, WHETHER EXPRESS OR IMPLIED, INCLUDING ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE IN CONNECTION WITH FRANCHISOR'S (AND/OR AN AFFILIATE'S) SALE OF ANY GOODS, EQUIPMENT, FURNITURE, SIGNS, OR SUPPLIES TO FRANCHISEE. Franchisee agrees to execute any and all documents Franchisor reasonably requests, including letters of credit, security agreements, and
financing statements, to provide collateral for amounts due to Franchisor for purchases of inventory and other items custom in Franchisee's business.
E. Compliance with Laws.
Franchisee will, at its expense, comply with all applicable local, state, federal, and municipal laws, ordinances, rules, and regulations pertaining to the operation of the Pearce Bespoke Franchise, including any and all licensing and bonding requirements. Such laws, rules, and regulations shall include, without limitation, the Americans with Disabilities Act ("ADA"), the Gramm-Leach-Bliley Act, the Fair Credit Reporting Act ("FCRA"), the Telephone Consumer Protection Act ("TCPA"), the Fair and Accurate Credit Transactions Act ("FACTA"), the National Automated Clearinghouse Association ("NACHA") and associated regulations (collectively "Privacy Laws"), licenses to do business, fictitious name registrations, sales and other tax permits, reporting and payment of all taxes, and any other requirement, rule, law or regulation applicable to Franchisee or in the jurisdiction of the Territory.
If the California Consumer Privacy Act ("CCPA"), Cal. Civ. Code § 1798.100, et seq., or any federal or state privacy law applies to the Pearce Bespoke Franchise, whenever and to the extent Franchisee operates as a "Service Provider" under the CCPA or in a similar capacity under any federal or state privacy law, Franchisee represents, warrants, and covenants that:
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to the 2025 Pearce Bespoke Franchise Disclosure Document, franchisees must adhere to several standards and requirements to maintain uniformity and brand standards. Pearce Bespoke periodically develops uniform standards of quality and service, and the franchisee must maintain the uniformity and brand standards that Pearce Bespoke reasonably requires for all products and services. The franchisee must operate in strict compliance with the provisions outlined in the Franchise Agreement. The franchisee's right to use Pearce Bespoke's Marks and Business System applies only to the operation of the Pearce Bespoke Franchise within the Franchised Territory and exists only so long as the franchisee is in complete compliance with Pearce Bespoke's quality and operating standards.
Pearce Bespoke provides franchisees with an electronic copy of the Operations Manual, which describes the operational policies, standards, requirements, and practices as modified and amended by Pearce Bespoke. Franchisees must comply with all provisions of the Manuals, which Pearce Bespoke reserves the right to revise at any time. The design and appearance of the Pearce Bespoke Franchise, including signage, are part of the Business System, and franchisees must use only the signs, emblems, logos, lettering, and artwork that Pearce Bespoke requires or provides. Franchisees must follow Pearce Bespoke's current standards regarding design and appearance.
Additional requirements include maintaining high-speed internet access and an email address, as Pearce Bespoke will include the franchisee in the location section of its website. Franchisees are required to have a Pearce Bespoke Franchise website and pay all expenses associated with its development and operation. Pearce Bespoke establishes the rules for franchisees' internet presence and may require participation in e-commerce activities. Franchisees must also ensure their Pearce Bespoke Franchise is open for business at the times and in the manner specified in the Operations Manual, with minimum hours of operation subject to periodic amendments by Pearce Bespoke. Franchisees and their employees may be required to attend refresher courses and seminars, bearing all associated expenses. Pearce Bespoke also has the right to photograph the Franchise premises and employees with prior written consent.