Does Pearce Bespoke guarantee that the Franchise Agreement signed for each additional outlet under a Development Schedule will be identical to the current Franchise Agreement included in the Franchise Disclosure Document?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
If we determine that you are financially and operationally qualified to develop multiple Franchises, we may offer you the opportunity to enter into a Development Agreement, in which you will commit to develop a certain number of Franchises that we determine to be appropriate. Upon establishing each additional outlet under the Development Schedule an Area Developer may be required to sign a then-current Franchise Agreement, which may differ from the current Franchise Agreement included with this Franchise Disclosure Document.
Source: Item 1 — THE FRANCHISOR AND ANY PARENTS, PREDECESSORS AND AFFILIATES (FDD pages 7–8)
What This Means (2025 FDD)
According to Pearce Bespoke's 2025 Franchise Disclosure Document, the Franchise Agreement signed for each additional outlet under a Development Schedule may not be identical to the current Franchise Agreement included in the Franchise Disclosure Document. The document states that upon establishing each additional outlet under the Development Schedule, an Area Developer may be required to sign a then-current Franchise Agreement.
This means that the terms and conditions of the Franchise Agreement could change between the time an Area Developer signs the initial Development Agreement and when they establish subsequent franchise outlets. These changes could include modifications to fees, royalties, operational requirements, or other key aspects of the franchise relationship.
For a prospective Pearce Bespoke Area Developer, this indicates a level of uncertainty regarding the specific terms that will govern each additional franchise they develop. It is important to carefully review any updated Franchise Agreements presented for subsequent outlets and to understand how any changes might impact the profitability and operational requirements of those franchises. A prospective franchisee should seek clarification from Pearce Bespoke regarding the types of changes that could be made to the Franchise Agreement and under what circumstances those changes would be implemented.