If a Pearce Bespoke franchisee does not participate in an advertising cooperative, are they still required to abide by the cooperative's bylaws?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee must have high speed internet access from the Pearce Bespoke Franchise and an e-mail address. Franchisor will include Franchisee in the Pearce Bespoke Franchise location section of Franchisor's website www.pearcebespoke.com at no charge as part of Franchisee's marketing fund. Franchisor will establish the rules from time to time under which franchisees will establish their own website or separately use the internet, and Franchisee shall be required to strictly abide by all such rules and follow the then current form of Internet Code of Conduct. Franchisee is required to have a Pearce Bespoke Franchise website and will pay all expenses associated with the development and operation of the website for Franchisee's individual Pearce Bespoke Franchise. Franchisor will, at its discretion, determine the content and use of the Pearce Bespoke website, and the core brand content and design of the franchisee Pearce Bespoke Franchise website templates. Franchisor will retain all rights relating to the Pearce Bespoke website and the individual Pearce Bespoke Franchises' website template and domain name(s) (URL) and may alter or terminate the websites upon thirty (30) days' notice to Franchisee. Franchisee's general conduct on the internet and specifically its use of the Marks on the internet (including the domain name and any other Marks Franchisor may develop as a result of participation on the internet) will be subject to the provisions of this Agreement and regulated by the Internet Code of Conduct or similar document. Franchisee may be required to participate in e-commerce activities (as regulated in the Internet Code of Conduct) on its Pearce Bespoke Franchise website and have a separate online merchant account to accept credit card payments through the website. Franchisee acknowledges that certain information obtained through its participation in the Pearce Bespoke internet and extranet websites may be considered Confidential Information (as defined in Section 9 below), including access codes and
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
Based on the 2025 Pearce Bespoke Franchise Disclosure Document, the document does not specify whether a franchisee is required to abide by the advertising cooperative's bylaws if they do not participate in the cooperative. The FDD does outline the franchisee's obligations regarding advertising and marketing, including local marketing expenditures if cooperative advertising contributions are less than 5% of Gross Sales, or if a regional cooperative program isn't established in their area. Franchisees must also use only approved advertising and marketing materials and participate in advertising and promotional programs established by Pearce Bespoke.
However, the FDD does state that Pearce Bespoke will establish rules for franchisees to establish their own website or separately use the internet, and the franchisee is required to strictly abide by all such rules and follow the then current form of Internet Code of Conduct. The franchisee is required to have a Pearce Bespoke Franchise website and will pay all expenses associated with the development and operation of the website for Franchisee's individual Pearce Bespoke Franchise.
To fully understand the obligations of a Pearce Bespoke franchisee regarding advertising cooperative bylaws, it is essential to clarify with the franchisor whether non-participation affects the requirement to adhere to those bylaws. This will ensure full compliance and avoid potential conflicts or misunderstandings in the future.