Is a Pearce Bespoke franchisee required to pay a renewal fee to renew the franchise agreement?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
| 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. You may be asked to sign a Franchise Agreement with materially different terms and conditions than your original Franchise Agreement. The entire provision is subject to state law. |
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, franchisees are required to pay a renewal fee if they choose to renew their franchise agreement. The initial term of the Pearce Bespoke franchise agreement is 10 years, but a franchisee can renew for up to two additional 5-year periods, provided they meet certain conditions.
To renew the franchise agreement, a Pearce Bespoke franchisee must provide advance written notice to the franchisor. They must also sign the then-current franchise agreement, which may contain materially different terms and conditions than the original agreement. In addition to these requirements, the franchisee must pay a renewal fee, remodel their existing location to meet current brand standards, secure an extension of their lease, and be in full compliance with the current franchise agreement during its term.
It is important for prospective Pearce Bespoke franchisees to understand all the renewal requirements, including the potential for a materially different franchise agreement and the costs associated with remodeling and the renewal fee. Franchisees should carefully consider these factors when deciding whether to renew their franchise agreement, as failing to meet any of these requirements could result in the termination of their franchise.