What is included in the definition of 'Required Purchases' for a Pearce Bespoke franchise?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
The products or services we require you to purchase or lease from an Approved Supplier, or purchase or lease in accordance with Business System's standards and specifications, are referred to collectively as your "Required Purchases." We estimate that your Required Purchases, purchases from Approved Suppliers and purchases that must meet our specifications in total will be about 65% - 80% of your total purchases to establish the Franchise and about 65% - 80% of your purchases to continue the operation of your Franchise.
Pearce Bespoke is an Approved Supplier for certain items for which you are contractually obligated to purchase in the operation of your Franchise. Pearce Bespoke, its officers and/or persons affiliated with us, may now or in the future own an interest in Pearce Bespoke and be Approved Suppliers of certain items of the Business System. Pearce Bespoke officers do not own any interest in any Approved Supplier. Approved Supplier items include, but shall not limited to, recruiting services, computer hardware, software, collaboration and communication services, telephone, information management system, credit/debit card processing, criminal history background checks, email marketing, online accounting, virtual phone systems and client online surveys. You must license the POS/CRM software and purchase the computer hardware components for the POS System (the "POS System") either from us or a third-party vendor which may be modified from time to time in the Manuals.
You must operate your Franchise in accordance with our Business System. The Business System's standards and specifications relating to the establishment, operation, and regulation of your Franchise, include but are not limited to, goods, services, supplies, items, equipment, inventory, and real estate fixtures; computer hardware, software, search engine optimization services, client survey services; marketing materials, advertising and sales collateral, use of signs, letterhead, business cards, and other promotional materials; credit card processing services; insurance providers; vehicle manufacturers (including make and model); and all clothing manufacturers and distributers used in operating your Franchise.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 19–20)
What This Means (2025 FDD)
According to Pearce Bespoke's 2025 Franchise Disclosure Document, "Required Purchases" are defined as the products or services that franchisees must either purchase or lease from an Approved Supplier, or purchase or lease in accordance with the Business System's standards and specifications. These required purchases are estimated to constitute a significant portion of a franchisee's total expenditures, approximately 65% - 80% both for establishing the franchise and for ongoing operations. This means a substantial part of a franchisee's spending is directed towards items or services dictated by Pearce Bespoke.
Pearce Bespoke is an Approved Supplier for certain items that franchisees are contractually obligated to purchase. These items include recruiting services, computer hardware, software, collaboration and communication services, telephone, information management system, credit/debit card processing, criminal history background checks, email marketing, online accounting, virtual phone systems and client online surveys. Franchisees must also license the POS/CRM software and purchase the computer hardware components for the POS System either from Pearce Bespoke or a third-party vendor.
The Business System's standards and specifications extend to various aspects of the franchise, including goods, services, supplies, items, equipment, inventory, real estate fixtures, computer hardware and software, search engine optimization services, client survey services, marketing materials, advertising and sales collateral, signs, letterhead, business cards, promotional materials, credit card processing services, insurance providers, vehicle manufacturers, and clothing manufacturers and distributors. Pearce Bespoke negotiates programs with manufacturers and suppliers to enable franchisees to benefit from volume purchasing and prepaid freight programs. Third-party vendors may charge franchisees directly for products or services.
This requirement ensures uniformity and quality across all Pearce Bespoke franchises, but it also limits a franchisee's autonomy in choosing suppliers and potentially impacting their costs. While franchisees can request supplier approval, Pearce Bespoke retains the final decision. Prospective franchisees should carefully evaluate the list of required purchases and approved suppliers to understand the potential financial implications and operational restrictions.