If a Pearce Bespoke franchisee violates a material provision of the Franchise Agreement, is that considered a curable default?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise | Summary | |
|---|---|---|---|
| Agreement | |||
| a. | Length of the franchise | Section 2(A) | 10 years |
| b. | Renewal or extension of the term | Section 2(B) | If you meet the renewal requirements set forth in the Franchise Agreement, you can renew the Franchise Agreement for up to two additional 5-year period(s). |
| c. | Requirements for you to renew or extend | Section 2(B) | Provide advance notice in writing, sign then current Franchise Agreement, pay renewal fee, remodel, meet all current Brand Standards, secure extension of lease and be in compliance with current Franchise Agreement during the term of the Agreement. You may be asked to sign a Franchise Agreement with materially different terms and conditions than your original Franchise Agreement. The entire provision is subject to state law. |
| d. | Termination by you | Section 16(A) | If you are complying with the Franchise Agreement, and Pearce Bespoke fails to cure a material default within 30 days after Pearce Bespoke’s receipt of written notice, subject to state law. |
| e. | Termination by Pearce Bespoke without cause | Not Applicable | Not Applicable |
| f. | Termination by Pearce Bespoke with cause | Sections 15(A) and (B) | Pearce Bespoke can terminate the Franchise Agreement only if you default. Subject to state law. |
| g. | “Cause” defined – curable defaults | Sections 15(A) and (B) | You have 30 days to cure a violation of any material provision of the Franchise Agreement, non-payment of amounts owed to Pearce Bespoke or any applicable local advertising cooperative, failure to abide by Pearce Bespoke’s standards and requirements in operating the Franchise, an assignment of assets to creditors and the expiration or termination of the Franchise’s lease. Subject to state law. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 31–34)
What This Means (2025 FDD)
According to Pearce Bespoke's 2025 Franchise Disclosure Document, a franchisee's violation of a material provision of the Franchise Agreement is considered a curable default. Specifically, the FDD outlines the conditions under which Pearce Bespoke can terminate the Franchise Agreement due to a franchisee's default, and it also specifies the defaults that are considered curable. This means that if a franchisee breaches a material term of the agreement, they have an opportunity to correct the issue and avoid termination.
The FDD states that a Pearce Bespoke franchisee has 30 days to cure certain violations. These curable defaults include violating any material provision of the Franchise Agreement, failing to pay amounts owed to Pearce Bespoke or any applicable local advertising cooperative, not abiding by Pearce Bespoke’s standards and requirements in operating the Franchise, assigning assets to creditors, and the expiration or termination of the Franchise’s lease. The availability of a cure period is a standard practice in franchising, as it provides franchisees with a chance to rectify issues before facing severe consequences like termination.
It is important to note that the ability to cure a default is subject to state law, meaning that the specific regulations and requirements may vary depending on the state in which the franchise operates. Prospective Pearce Bespoke franchisees should be aware of the specific laws in their state regarding termination and cure periods to fully understand their rights and obligations under the Franchise Agreement. Understanding these provisions is crucial for franchisees to protect their investment and maintain a successful business relationship with Pearce Bespoke.