Can Pearce Bespoke implement a non-pass-through Technology Fee?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
or the assets of the Franchise are transferred.
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- You must pay us, or a third party that we designate, a technology fee for various technology services that we will provide or arrange for third parties to provide to you, which services are subject to change over time (the "Technology Fee"). Currently, the Technology Fee is a pass-through cost for the technology services we provide for you from the date that you open your Business for business and will be collected in the same manner as the Royalty Fee and Brand Fund Fee. We reserve the right to implement a non-pass-through Technology Fee for technology and website development services we will provide. We reserve the right to increase the Technology Fee by providing you with written notice of any change at least thirty (30) days prior to the implementation of the new fee amount. We may add, delete, or otherwise modify the products and services that are included in the Technology Fee. In addition to the monthly Technology Fee, you will be responsible for any "per transaction" fee charged by third-party vendors for mobile application or online bookings, if any. The maximum increase for the Technology Fee is 10% annually.
ITEM 7 ESTIMATED INITIAL INVESTMENT
Your Estimated Initial Investment for a Single Franchised Territory Franchise
| TYPE OF | AMOUNT | METHOD | TO WHOM | ||
|---|---|---|---|---|---|
| EXPENDITURES1 | LOW | HIGH | OF | WHEN DUE | PAYMENT IS |
| ESTIMATE | ESTIMATE | PAYMENT | TO BE MADE | ||
| Initial Franchise Fee2 | $29,000 | $55,900 | Lump sum | When you sign the Franchise Agreement | Pearce Bespoke |
| Travel and Living Expenses For Training3 | $199 | $2,500 | As arranged | As incurred | Lodging, Transportation, and Meals |
| On-Site Training4 | $0 | $5,000 | As arranged | As incurred | Lodging, Transportation, and Meals |
| Rent (3 months)5 | $0 | $1,500 | As arranged | According to lease | Lessor/Landlord |
| Opening Inventory & | $8,000 | $8,000 | Lump Sum | Before opening | Pearce Bespoke |
| Equipment Package6 | |||||
| Clothier Recruiting | $0 | $6,000 | Lump Sum | Before opening | Third-party |
| Services7 | suppliers | ||||
| Clothier Inventory | $0 | $5,400 | Lump Sum | Before opening | Pearce Bespoke |
| Package8 | |||||
| Uniforms9 | $ |
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 non-pass-through Technology Fee for technology and website development services. Currently, the Technology Fee is a pass-through cost, but Pearce Bespoke can change this.
The FDD states that Pearce Bespoke can increase the Technology Fee, but the increase cannot exceed 10% annually. They must provide franchisees with written notice at least thirty days before implementing any changes to the fee amount. Pearce Bespoke can also modify the products and services included in the Technology Fee.
Currently, the Technology Fee is $25 per week. In addition to the monthly Technology Fee, franchisees are responsible for any "per transaction" fee charged by third-party vendors for mobile application or online bookings, if any.
Prospective franchisees should be aware that the Technology Fee is subject to change, and they should factor in potential increases when evaluating the financial viability of a Pearce Bespoke franchise.