What happens to the Development Fee if the Pearce Bespoke Development Agreement is terminated for any reason?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
Upon termination of this Agreement for any other reason whatsoever, we will retain the Development Fee and you will not be relieved of any of your obligations, debts, or liabilities hereunder, including without limitation any debts, obligations, or liabilities which have accrued prior to such termination.
Source: Item 23 — RECEIPTS (FDD pages 39–172)
What This Means (2025 FDD)
According to the 2025 Pearce Bespoke Franchise Disclosure Document, if the Development Agreement is terminated for any reason, Pearce Bespoke will retain the Development Fee. The franchisee will not be relieved of any obligations, debts, or liabilities, including those accrued before the termination.
This means that a prospective Pearce Bespoke franchisee who signs a Development Agreement and pays a Development Fee risks losing that fee if the agreement is terminated, regardless of the reason for termination. This could occur due to failure to meet the opening deadlines specified in the Development Schedule, a breach of the Franchise Agreement, or any other failure to comply with the Development Agreement.
This policy is a significant risk for franchisees, as the Development Fee is non-refundable even if Pearce Bespoke terminates the agreement. Franchisees should carefully consider their ability to meet the development schedule and comply with all agreement terms before signing a Development Agreement and paying the Development Fee. It is advisable to seek legal counsel to fully understand the implications of this policy.