factual

From whom must a Pearce Bespoke franchisee purchase items, furniture, equipment, signs, and supplies?

Pearce_Bespoke Franchise · 2025 FDD

Answer from 2025 FDD Document

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.

Source: Item 22 — CONTRACTS (FDD page 39)

What This Means (2025 FDD)

According to the 2025 Pearce Bespoke Franchise Disclosure Document, franchisees must purchase specific items, furniture, equipment, signs, and supplies from approved sources. Pearce Bespoke requires franchisees to use only those types, models, or brands of items, furniture, equipment, signs, and supplies that Pearce Bespoke approves as meeting its standards for quality, design, warranties, appearance, function, and performance. These items must be purchased exclusively from sources, manufacturers, or suppliers approved in writing by Pearce Bespoke, which may include Pearce Bespoke itself or its affiliates.

Pearce Bespoke also mandates that franchisees use only designated and approved service providers, manufacturers, brands, or types of items, equipment (including computers and point-of-sale systems), and signs. These approved brands or types of items, equipment, and signs must be purchased from suppliers approved by Pearce Bespoke, which again may include Pearce Bespoke or its affiliates.

Pearce Bespoke retains the right to be the sole approved supplier for certain products and services that franchisees are required to purchase. Furthermore, Pearce Bespoke or its affiliates may receive payments from suppliers related to the franchisee's required purchases or leases, and these payments are solely for Pearce Bespoke's benefit, to be used at its discretion. This arrangement gives Pearce Bespoke significant control over the supply chain and ensures uniformity across all franchise locations, while also creating a potential revenue stream for the franchisor through supplier payments.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.