Is a Pearce Bespoke franchisee required to sign the then-current Franchise Agreement to renew?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
visions in the agreements attached to this Disclosure Document.**
A. Franchise Agreement
| 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. |
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, a franchisee must sign the then-current Franchise Agreement as part of the renewal process. The standard franchise agreement lasts for 10 years, but a franchisee can renew for up to two additional 5-year periods if they meet certain requirements.
To renew their Pearce Bespoke franchise, a franchisee must provide advance written notice, sign the then-current Franchise Agreement, pay a renewal fee, remodel their location, meet all current Brand Standards, secure an extension of their lease, and be in compliance with the current Franchise Agreement during its term. The FDD notes that the new Franchise Agreement presented at renewal may contain terms and conditions that are materially different from the original agreement.
This requirement to sign a new agreement with potentially different terms is a significant consideration for prospective franchisees. It means that renewal is not guaranteed on the same terms as the original agreement. Pearce Bespoke could introduce new fees, change operational requirements, or modify the franchisee's obligations in other ways. The renewal process and the terms of the then-current Franchise Agreement are subject to state law, which may provide some additional protections or requirements.
Prospective franchisees should carefully consider this renewal condition and discuss it with Pearce Bespoke during their due diligence. Understanding the types of changes that Pearce Bespoke might make to the Franchise Agreement at the time of renewal is crucial for making an informed investment decision. Franchisees should also consult with an attorney to understand their rights and obligations under both the original and any subsequent Franchise Agreements.