Who may implement a contribution requirement for Pearce Bespoke franchisees?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Contribution | implementation | we reserve the right to implement | |
| one in the future, implemented by | |||
| Pearce Bespoke or the franchisees. | |||
| Local Marketing | Minimum 5% of your Gross | Minimum amount must be | See Note 5 below. See Note 6 below |
| Expenses | Sales | spent during each calendar | |
| year. | We reserve the right to increase to a | ||
| maximum of 6% upon 30 days' | |||
| written notice |
Source: Item 6 — OTHER FEES (FDD pages 11–15)
What This Means (2025 FDD)
According to the 2025 Pearce Bespoke Franchise Disclosure Document, Pearce Bespoke reserves the right to implement a contribution requirement for franchisees. The FDD outlines this in Item 6 under Other Fees. The contribution amount and specific details are not defined, but the document states that Pearce Bespoke or the franchisees may implement one in the future.
In addition to this potential contribution, Pearce Bespoke franchisees are required to spend a minimum of 5% of their gross sales on local marketing expenses annually. Pearce Bespoke retains the right to increase this local marketing expense requirement to a maximum of 6% with 30 days' written notice.
Prospective franchisees should inquire with Pearce Bespoke about the specifics of the contribution, including what it would cover, how it would be managed, and the process for franchisees to be involved in its implementation. Understanding the potential financial impact and governance of this contribution is crucial for making an informed investment decision.