What happens if a Pearce Bespoke franchisee repeats the same default within a 12-month period?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
- (12) After curing a default, engages in the same default within a twelve (12) month period whether or not this default is corrected after notice; or, within any twenty-four (24) month period, engages in four (4) separate defaults, whether or not these defaults are cured after notice;
Franchisor may terminate this Agreement immediately upon delivery of written notice to Franchisee, with no opportunity to cure, if the termination results from any of the following: (1) Franchisee repeatedly fails to comply with one or more material requirements of this Agreement; (2) the nature of Franchisee's breach makes it not curable; (3) Franchisee willfully and repeatedly deceives customers relative to the source, nature or quality of goods sold; (4) any default under items (1), (3), (6), (8), (9), (11), (12), (13) or (14) in Section 15(A) above
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to the 2025 Pearce Bespoke Franchise Disclosure Document, a franchisee will be in default of their agreement if, after curing a default, they engage in the same default within a 12-month period, regardless of whether the default is corrected after notice. This is also true if the franchisee engages in four separate defaults within a 24-month period, whether or not these defaults are cured after notice.
This clause means that Pearce Bespoke franchisees must maintain consistent compliance with the franchise agreement. Repeatedly violating the same term, even if the franchisee fixes the issue each time, can lead to termination. The same is true for multiple violations, even if corrected, within a two-year span.
Pearce Bespoke can terminate the franchise agreement immediately upon written notice, without opportunity to cure, if the termination results from a franchisee repeating the same default within a 12-month period. This is also true for any default under items related to failure to open on time, manager convictions, insolvency, abandoning the business, impairing goodwill, frequent customer complaints, failure to cooperate with audits, or violating non-compete agreements.
This policy is stricter than some franchise agreements, which may allow multiple cure opportunities before termination. Prospective Pearce Bespoke franchisees should understand that maintaining operational compliance is critical to avoid potential termination.