Can Pearce Bespoke franchisees establish a local advertising cooperative?

According to Pearce Bespoke's 2025 Franchise Disclosure Document, Pearce Bespoke franchisees, along with Pearce Bespoke itself, have the option to establish a local advertising cooperative in their area. The amount of cooperative advertising fees will be determined by the local advertising cooperative. If a company-owned franchise is part of the cooperative, it will have voting power equal to that of franchised stores, but company-owned stores will not have controlling power in any local cooperative.

Franchisees are required to spend a minimum of 5% of their Gross Sales on local marketing. If a franchisee's annual contributions to cooperative advertising programs are less than 5% of their Gross Sales, they must conduct additional advertising and marketing activities in their local geographic area. These local advertising activities do not eliminate the obligation to contribute to cooperative advertising programs. Pearce Bespoke may require franchisees to pay the difference between what they should have spent and what they actually spent on advertising initiatives if they do not meet the 5% threshold. Pearce Bespoke recommends that franchisees spend $12,000 to $15,000 on advertising and marketing during the first year.

This structure ensures that franchisees contribute adequately to local advertising efforts, either through the cooperative or through their own initiatives. The cooperative model allows for collective decision-making on advertising strategies, while the minimum spending requirement ensures a baseline level of local marketing investment. The franchisor's recommendation for first-year advertising spending provides a guideline for new franchisees to effectively promote their business in their local market.