What is the geographic scope of the Pearce Bespoke encroachment fee?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Encroachment Fee | 20% of all revenue generated from any client in any territory outside of your Franchised Territory, payable to us or the franchisee whose territory was | As outlined in the Manuals. Currently, they are due 10 days after notice from us | Imposition of such fees are based upon the facts leading up to the alleged encroachment and the determination of whether to charge such fees will be at our sole discretion. |
Source: Item 6 — OTHER FEES (FDD pages 11–15)
What This Means (2025 FDD)
According to Pearce Bespoke's 2025 Franchise Disclosure Document, the encroachment fee applies when a franchisee generates revenue from clients outside of their designated territory. Specifically, if a Pearce Bespoke franchisee gains business from a client who is located in another franchisee's exclusive territory, the franchisee who obtained the business must pay an encroachment fee.
The encroachment fee is calculated as 20% of all revenue generated from clients located outside of the franchisee's designated territory. This fee is payable to Pearce Bespoke or to the franchisee whose territory was encroached upon. The due date for the encroachment fee is outlined in the Pearce Bespoke manuals and is currently 10 days after notice from Pearce Bespoke.
It's important to note that the imposition of the encroachment fee is based on the specific facts leading up to the alleged encroachment. The decision to charge the fee is at Pearce Bespoke's sole discretion. This means that while the general policy is outlined, the actual enforcement can vary depending on the circumstances. A prospective franchisee should carefully review the manuals and discuss specific scenarios with Pearce Bespoke to fully understand how the encroachment policy is applied.