Is Pearce Bespoke Franchising, LLC considered a third-party beneficiary of the agreement?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
WHEREAS, our franchisor, Pearce Bespoke Franchising, LLC is not a party to this agreement and does not own or manage the Pearce Bespoke Business but is an intended third-party beneficiary of this Agreement; and
WHEREAS, this Agreement is not an employment agreement and is only a confidentiality agreement in connection with information, materials and access that may be provided to you in connection with the Pearce Bespoke Business.
NOW THEREFORE, you acknowledge and agree as follows:
YOU ACKNOWLEDGE AND AGREE THAT OUR FRANCHISOR, PEARCE BESPOKE FRANCHISING, LLC, IS NOT A PARTY TO THIS AGREEMENT BUT IS AN INTENDED THIRD-PARTY BENEFICIARY OF THIS AGREEMENT.
You agree that failure to comply with the terms of this Agreement will cause irreparable harm to us and to our franchisor, Pearce Bespoke Franchising, LLC, and other Pearce Bespoke franchisees for which there is no adequate remedy at law.
Therefore, you agree that any violation of these covenants will entitle us or our franchisor, Pearce Bespoke Franchising, LLC, to injunctive relief.
You agree that we and/or our franchisor, Pearce Bespoke Franchising, LLC, may apply for such injunctive relief, without bond, but upon due notice, in addition to such further and other relief as may be available at equity or law, and the sole remedy of yours, in the event of the entry of such injunction, will be the dissolution of such injunction, if warranted, upon hearing duly held (all claims for damages by reason of the wrongful issuance of any such injunction being expressly waived hereby).
Source: Item 23 — RECEIPTS (FDD pages 39–172)
What This Means (2025 FDD)
According to Pearce Bespoke's 2025 Franchise Disclosure Document, Pearce Bespoke Franchising, LLC is considered an intended third-party beneficiary of the Confidentiality and Restrictive Covenant Agreement. This agreement is between the franchisee and their employee or contractor.
This means that while Pearce Bespoke Franchising, LLC is not a direct party to the agreement between the franchisee and their personnel, it retains certain rights and benefits under that agreement. Specifically, Pearce Bespoke Franchising, LLC can enforce the confidentiality provisions outlined in the agreement, even though they did not directly enter into it.
This is particularly relevant in the context of protecting confidential information and trade secrets related to the Pearce Bespoke business model. If an employee or contractor of the franchisee breaches the confidentiality agreement, Pearce Bespoke Franchising, LLC has the right to seek legal remedies, such as injunctive relief, to prevent further disclosure or misuse of confidential information. This protection extends to other Pearce Bespoke franchisees as well.
The agreement explicitly states that failure to comply with its terms will cause irreparable harm not only to the franchisee but also to Pearce Bespoke Franchising, LLC and other franchisees. Therefore, both the franchisee and Pearce Bespoke Franchising, LLC can pursue injunctive relief in case of a breach, ensuring the protection of the Pearce Bespoke system and confidential information.