If the Pearce Bespoke franchisee is an entity, what is required regarding the owners of the entity?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
- C. If you are a corporation, limited liability company, partnership, or other entity (collectively, an "Entity"), all owners of a legal and/or beneficial interest in the Entity (the "Owners") are listed in Exhibit A to this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 39–172)
What This Means (2025 FDD)
According to the 2025 FDD, if a Pearce Bespoke franchisee is a corporation, limited liability company, partnership, or other entity, all owners of a legal and/or beneficial interest in the entity must be listed in Exhibit A of the Area Development Agreement. This exhibit is referred to as "Franchisee-Specific Terms."
This requirement ensures that Pearce Bespoke knows who the individuals are behind the entity that is becoming a franchisee. This allows Pearce Bespoke to assess the qualifications, experience, and financial stability of the individuals who ultimately control the franchise. It also allows Pearce Bespoke to maintain clear records of who is responsible for the franchise's operations and compliance with the franchise agreement.
Prospective Pearce Bespoke franchisees should be aware that providing complete and accurate information about all owners is essential. Any changes in ownership must be promptly reported to Pearce Bespoke, as failure to do so could result in a breach of the franchise agreement.