If I enter into a Development Agreement with Pearce Bespoke, what fee must I pay?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
If we determine that you are financially and operationally qualified to develop multiple Franchises, we may offer you the opportunity to enter into a Development Agreement, in which you will commit to develop a certain number of Franchises that we determine to be appropriate. We have the right to determine the number of Franchises that we deem as appropriate in our sole and absolute discretion, based upon several factors, such as but not limited to, territory availability, your business acumen, your financial wherewithal, your ability to fund or obtain funding for your Franchise, and your overall business and operational experience. If you enter into a Development Agreement, you must pay us a one- time development fee
upon execution of your Development Agreement ("Development Fee"). Your Development Fee will depend on the number of Franchises we grant you the right to open within the Development Area, and is calculated as set forth in the table below:
| Number of | ||
|---|---|---|
| Franchises We Grant | ||
| Franchise Fee | Cumulative Development Fee | |
| You the Right to | ||
| Develop | ||
| 1 | $55,900 | $55,900 |
| 2 | $50,900 | $106,800 |
| 3 | $45,900 | $152,700 |
| 4 | $40,900 | $193,600 |
| 5 | $35,900 | $229,500 |
| 6 | $30,900 | $260,400 |
If we permit you to open more than six (6) Franchises under a Development Agreement, your Development Fee will be equal to (i) $260,400, plus (ii) $30,900 for each additional Franchise that we grant you the right to develop. You will be required to enter into our then current form of Franchise Agreement for each Franchise that you wish to open under your Development Agreement, but you will not be required to pay any additional initial franchise fee at the time you execute each of these franchise agreements. If you enter into a Development Agreement, you must execute our current form of franchise agreement for the initial Franchise we grant you the right to open within your Development Area, concurrently with the Development Agreement.
Source: Item 5 — INITIAL FEES (FDD pages 9–11)
What This Means (2025 FDD)
According to Pearce Bespoke's 2025 Franchise Disclosure Document, if you enter into a Development Agreement, you must pay a one-time development fee upon execution of the agreement. This Development Fee depends on the number of franchises you are granted the right to open within the Development Area. The Development Fee is calculated as detailed in the provided table. For example, the development fee for one franchise is $55,900, for two franchises it is $106,800, and for six franchises it is $260,400. If Pearce Bespoke permits you to open more than six franchises under a Development Agreement, your Development Fee will be equal to $260,400, plus $30,900 for each additional franchise that you are granted the right to develop.
Notably, if you enter into a Development Agreement with Pearce Bespoke, you must execute their current form of franchise agreement for the initial Franchise they grant you the right to open within your Development Area, concurrently with the Development Agreement. However, you will not be required to pay any additional initial franchise fee at the time you execute each of these franchise agreements. This means that the Development Fee covers the initial franchise fees for each location specified in the agreement.
Prospective Pearce Bespoke franchisees should carefully consider the number of franchises they commit to developing under a Development Agreement, as this decision directly impacts the initial Development Fee. It is important to assess your financial capabilities and operational readiness to manage multiple franchise locations before entering into such an agreement. Understanding the terms and conditions of the Development Agreement, including the development schedule and any performance requirements, is crucial for making an informed investment decision.