If Pearce Bespoke commences negotiations to purchase the franchisee's business, for how long is the Pearce Bespoke franchisee restricted from selling to a third party?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
Upon Franchisor's receipt of written notice specifying the proposed price and terms of a proposed sale or transfer of Franchisee's business or interest therein, Franchisor will give Franchisee written notice within ten (10) business days thereafter if Franchisor has an interest in negotiating to purchase the business or interest being offered according to the proposed terms. If Franchisor commences negotiations to purchase Franchisee's business or interest therein as described herein, Franchisee may not sell the business or interest being offered to a third party for at least thirty (30) days or until Franchisor and Franchisee agree in writing that the negotiations have terminated, whichever comes first. If Franchisor waives its right to purchase, Franchisee may complete the sale or transfer of the business or interest therein according to the terms described in the written notice to Franchisor but not upon more favorable terms. Any such sale, transfer, or assignment to a third party is subject to the provisions stated in Section 14 of this Agreement. Franchisor's nonacceptance of Franchisee's written offer will not affect or change Franchisee's obligations under this Agreement.
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to Pearce Bespoke's 2025 Franchise Disclosure Document, a franchisee is restricted from selling their business to a third party for a limited time if Pearce Bespoke begins negotiations to purchase the franchise. Specifically, the franchisee must first offer the business to Pearce Bespoke in writing, including all material terms of the proposed sale.
Upon receiving this written notice, Pearce Bespoke has ten business days to notify the franchisee if they are interested in negotiating a purchase. If Pearce Bespoke does commence negotiations, the franchisee is then restricted from selling to a third party for at least thirty days.
This restriction lasts for thirty days or until Pearce Bespoke and the franchisee agree in writing that the negotiations have ended, whichever occurs first. If Pearce Bespoke waives its right to purchase the franchise, the franchisee is then free to complete the sale to a third party, provided it is on the same terms as those initially offered to Pearce Bespoke.