If Pearce Bespoke uses a public figure, will the cost be shared among all franchisees?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 18: PUBLIC FIGURES]
ITEM 18 PUBLIC FIGURES
Pearce Bespoke currently does not use any public figure to promote its franchise, although Pearce Bespoke reserves the right to engage a public figure for endorsements in the future. No public figure is involved in the management or control of Pearce Bespoke.
Source: Item 18 — PUBLIC FIGURES (FDD pages 34–35)
What This Means (2025 FDD)
According to the 2025 Pearce Bespoke Franchise Disclosure Document, Pearce Bespoke currently does not use any public figure to promote its franchise. However, Pearce Bespoke reserves the right to engage a public figure for endorsements in the future.
Item 11 discusses the Brand Fund, which is funded by franchisee contributions. Franchisees must pay a Brand Fund Fee of 2% of Gross Sales per week, and Pearce Bespoke may increase this up to a maximum of 3% of Gross Sales per week. Pearce Bespoke uses these fees to cover advertising, social media, and public relations costs. These costs include preparing and producing advertising campaigns for television, radio, magazines, and newspapers, as well as direct mail and outdoor billboard advertising. The Brand Fund may be used on a local, regional, or national level and may utilize national or regional marketing agencies at Pearce Bespoke's discretion.
While Pearce Bespoke does not specify whether the cost of a public figure would be covered by the Brand Fund, it is reasonable to assume that it would be, given that the Brand Fund is used for advertising and public relations. However, the FDD also states that not all Pearce Bespoke franchisees will benefit directly or on a pro-rata basis from the Brand Fund's expenditures, and Pearce Bespoke is not obligated to spend any amount of the Brand Fund Fee on advertising in the area or territory where a franchisee is located. Therefore, while the cost of a public figure could be shared among all franchisees through the Brand Fund, there is no guarantee that all franchisees would benefit equally or directly from such an expenditure.