factual

When does the franchisee's license to use customer data for operating the Pearce Bespoke franchise terminate?

Pearce_Bespoke Franchise · 2025 FDD

Answer from 2025 FDD Document

Franchisor licenses to Franchisee the use of such data solely for the purpose of operating

the Pearce Bespoke Franchise; provided that, this license shall automatically and irrevocably terminate, without any additional action or notice required by Franchisor, upon the expiration or earlier termination of this Agreement.

Source: Item 22 — CONTRACTS (FDD page 39)

What This Means (2025 FDD)

According to Pearce Bespoke's 2025 Franchise Disclosure Document, the license granted to a franchisee to use customer data for operating their Pearce Bespoke franchise automatically and irrevocably terminates upon the expiration or earlier termination of the Franchise Agreement. This termination occurs without any additional action or notice required from Pearce Bespoke.

This means that when the franchise agreement ends, either at the end of its term or if it's terminated early due to a breach or other cause, the franchisee immediately loses the right to use any customer data they had been using to run the business. This includes customer names, addresses, purchase history, and any other information collected during the franchise term.

For a prospective Pearce Bespoke franchisee, this highlights the importance of understanding the terms of the franchise agreement and the potential impact of its termination. Since the customer data is owned exclusively by Pearce Bespoke, the franchisee cannot take this information with them to start a competing business or use it for any other purpose after the agreement ends. This is a common practice in franchising, as the customer relationships are often considered a key asset of the franchised brand.

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.