If the Pearce Bespoke Development Agreement is terminated, is the franchisee relieved of any obligations, debts, or liabilities?
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. All rights and remedies of the parties hereto shall be cumulative and not alternative, in addition to and not exclusive of any other rights or remedies which are provided for herein or which may be available at law or in equity in case of any breach, failure or default or threatened breach, failure or default of any term, provision or condition of this Agreement. The rights and remedies of the parties hereto shall be continuing and shall not be exhausted by any one or more uses thereof and may be exercised at any time or from time to time as often as may be expedient; and any option or election to enforce any such right or remedy may be exercised or taken at any time and from time to time.
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, the franchisee is not relieved of any obligations, debts, or liabilities. Pearce Bespoke will retain the Development Fee paid by the franchisee. This includes any debts, obligations, or liabilities that accrued before the termination date.
This means that even after the agreement ends, the franchisee remains responsible for fulfilling any outstanding financial or contractual commitments to Pearce Bespoke. This could include unpaid fees, outstanding loan balances, or any other financial obligations incurred during the term of the agreement.
This provision protects Pearce Bespoke's financial interests in the event of a termination and ensures that the franchisee cannot simply walk away from their obligations. Prospective franchisees should carefully consider this clause and ensure they have the financial resources to meet their obligations even if the Development Agreement is terminated early. Franchisees should seek legal counsel to fully understand the implications of this clause before signing the agreement.
It is important to note that the rights and remedies available to both Pearce Bespoke and the franchisee are cumulative and can be exercised at any time. This means that Pearce Bespoke can pursue multiple avenues of recourse simultaneously, and its options are not limited by previous actions. This clause underscores the importance of adhering to the terms of the Development Agreement to avoid potential legal and financial repercussions.