What happens if a Pearce Bespoke franchisee's annual contributions to cooperative advertising programs are less than 5% of Gross Sales?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
have controlling power in any local cooperative.
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- To the extent your annual contributions to cooperative advertising programs are less than 5% of the Gross Sales for your Franchise, you must conduct additional advertising and marketing activities in your local geographic area. Your local advertising activities, however, will not eliminate your obligations to contribute to cooperative advertising programs. If you do not spend at least 5% of Gross Sales for the calendar year for cooperative or local advertising, we may require that you pay Pearce Bespoke the difference between what you should have spent and what you actually spent on advertising initiatives in your market for the previous calendar year, at Pearce Bespoke's sole discretion. Pearce Bespoke recommends that you spend $12,000 $15,000 on
Source: Item 6 — OTHER FEES (FDD pages 11–15)
What This Means (2025 FDD)
According to Pearce Bespoke's 2025 Franchise Disclosure Document, franchisees are required to contribute to cooperative advertising programs. If a franchisee's annual contributions to these programs are less than 5% of their Gross Sales, they are obligated to conduct additional advertising and marketing activities in their local geographic area. However, these local advertising efforts do not eliminate the requirement to contribute to the cooperative advertising programs.
Pearce Bespoke retains the right to demand that the franchisee pay the company the difference between what they should have spent (5% of Gross Sales) and what they actually spent on advertising initiatives in their market for the previous calendar year. This decision is at Pearce Bespoke's sole discretion.
Pearce Bespoke also recommends that franchisees spend between $12,000 and $15,000 on advertising and marketing during their first year of operation. This recommendation highlights the importance Pearce Bespoke places on advertising and marketing for new franchisees.