Does Pearce Bespoke's imposition of an Operational Standards Violation Fee prevent them from seeking injunctive relief for continuing violations?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor has established certain operational standards, as set forth in the Operations Manual. Franchisee acknowledges that any deviation from an operational standard constitutes a violation of this Agreement and will require Franchisor to incur incalculable administrative and management costs to address such violation. Accordingly, Franchisee agrees that, to compensate Franchisor for its incalculable administrative and management costs due to Franchisee's operational standard violation, Franchisee shall pay Franchisor an Operational Standards Violation Fee, as set forth in the Operations Manual, for each violation of an operational standard. Franchisee hereby
authorizes Franchisor to take payment of the Operational Standards Violation Fee, at Franchisor's option, through electronic funds transfer or ACH payment. Franchisor need not give Franchisee a cure opportunity before charging the Operational Standards Violation Fee, and Franchisor's imposition of an Operational Standards Violation Fee does not preclude Franchisor from seeking injunctive relief to restrain any subsequent or continuing violation, formally defaulting and terminating this Agreement or exercising any of Franchisor's rights under this Agreement.
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to Pearce Bespoke's 2025 Franchise Disclosure Document, the imposition of an Operational Standards Violation Fee does not prevent Pearce Bespoke from seeking injunctive relief for continuing violations. The franchise agreement specifies that Pearce Bespoke can charge this fee for deviations from operational standards, which are detailed in the Operations Manual.
The agreement states that Pearce Bespoke need not provide an opportunity to cure the violation before charging the fee. More importantly, the agreement explicitly clarifies that charging the Operational Standards Violation Fee does not preclude Pearce Bespoke from pursuing other remedies. These remedies include seeking injunctive relief to stop ongoing violations, formally defaulting and terminating the Franchise Agreement, or exercising any other rights available to them under the agreement.
This clause provides Pearce Bespoke with multiple avenues for addressing a franchisee's non-compliance with operational standards. They can levy the fee to cover administrative costs, while simultaneously pursuing legal means to ensure compliance or terminate the agreement if necessary. For a prospective franchisee, this highlights the importance of adhering to the operational standards outlined in the Operations Manual to avoid both financial penalties and potential legal action from Pearce Bespoke.