Is a Pearce Bespoke franchisee permitted to advertise liquidation or going-out-of-business sales?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee will have the right to use the Marks and Business System only in the manner Franchisor directs and approves in writing. Franchisee will not have or acquire any rights in any of the Marks or Business System other than the right of use as governed by this Agreement. If, in the judgment of Franchisor, Franchisee's acts infringe upon or harm the goodwill, standards of uniformity or quality, or business standing associated with the Marks and Business System, Franchisee will immediately, upon written notice from Franchisor, modify or discontinue its use of the Marks and Business System in the manner Franchisor directs in writing. Franchisee will not, during or after the term of this Agreement, do anything directly or indirectly which would infringe upon, harm, mislead, or contest Franchisor's rights in the Marks or Business System, or the goodwill associated with the Marks or the Business System. Franchisee cannot advertise any liquidation or going-out-of-business sales or similar types of activity.
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to the 2025 Pearce Bespoke Franchise Disclosure Document, franchisees are explicitly prohibited from advertising liquidation or going-out-of-business sales. This restriction is in place to protect the goodwill, standards of uniformity and quality, and business standing associated with the Pearce Bespoke brand and business system.
This stipulation means that if a franchisee were to conduct such a sale, it would be considered a breach of the franchise agreement. Pearce Bespoke retains the right to enforce its brand standards and ensure that franchisees do not engage in activities that could harm the brand's reputation. This is a fairly standard clause in franchise agreements, as franchisors need to maintain consistent brand messaging and prevent individual franchisees from actions that could negatively impact the entire system.
For a prospective Pearce Bespoke franchisee, this means they must adhere to this restriction and plan their business operations accordingly. If a franchisee faces financial difficulties or wishes to exit the business, they would need to explore alternative options that do not involve liquidation or going-out-of-business sales, such as selling the franchise to a new owner or working with Pearce Bespoke to find a mutually agreeable solution. This restriction underscores the importance of careful financial planning and adherence to the franchisor's guidelines to maintain a successful and compliant Pearce Bespoke franchise.