factual

Can franchisees use unapproved suppliers for their Pearce Bespoke franchise?

Pearce_Bespoke Franchise · 2025 FDD

Answer from 2025 FDD Document

M 8 RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES

You must operate your Franchise in accordance with our Business System. The Business System's standards and specifications relating to the establishment, operation, and regulation of your Franchise, include but are not limited to, goods, services, supplies, items, equipment, inventory, and real estate fixtures; computer hardware, software, search engine optimization services, client survey services; marketing materials, advertising and sales collateral, use of signs, letterhead, business cards, and other promotional materials; credit card processing services; insurance providers; vehicle manufacturers (including make and model); and all clothing manufacturers and distributers used in operating your Franchise.

Pearce Bespoke has negotiated or will negotiate programs with several manufacturers and suppliers so that franchisees may benefit from volume purchasing and prepaid freight programs. Third party vendors may charge franchisees directly for products or services. The Business System's standards and specifications are based upon our experience with various vendors, contractors, and suppliers in the custom clothing and franchising industries and we will provide you with a list of our approved suppliers ("Approved Suppliers"). Pearce Bespoke retains the sole and absolute discretion to make the final determination on all Approved Suppliers, however, we will consider supplier approval requests from franchisees upon written request. We will approve or disapprove a supplier within 30 days after we receive written notice from you. All suppliers you use must be approved by us before you can use them and may be subject to our training and reporting requirements.

Pearce Bespoke is an Approved Supplier for certain items for which you are contractually obligated to purchase in the operation of your Franchise. Pearce Bespoke, its officers and/or persons affiliated with us, may now or in the future own an interest in Pearce Bespoke and be Approved Suppliers of certain items of the Business System. Pearce Bespoke officers do not own any interest in any Approved Supplier. Approved Supplier items include, but shall not limited to, recruiting services, computer hardware, software, collaboration and communication services, telephone, information management system, credit/debit card processing, criminal history background checks, email marketing, online accounting, virtual phone systems and client online surveys.

Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 19–20)

What This Means (2025 FDD)

According to Pearce Bespoke's 2025 Franchise Disclosure Document, franchisees must adhere to the brand's standards and specifications, which include using approved suppliers. Pearce Bespoke will provide a list of approved suppliers, and franchisees can request the approval of other suppliers. However, Pearce Bespoke retains the sole discretion to make the final determination on all approved suppliers.

To request a new supplier's approval, a franchisee must submit a written request to Pearce Bespoke. The franchisor will then approve or disapprove the supplier within 30 days of receiving the written notice. All suppliers must be approved by Pearce Bespoke before a franchisee can use them, and these suppliers may be subject to training and reporting requirements.

The FDD states that purchases from approved suppliers or those meeting Pearce Bespoke's specifications will constitute approximately 65% to 80% of the franchisee's total purchases, both for establishing the franchise and for ongoing operations. This requirement ensures uniformity and quality throughout the Pearce Bespoke system. Pearce Bespoke is also an approved supplier for certain items that franchisees are contractually obligated to purchase.

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.