Can Pearce Bespoke increase the Brand Fund Fee?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
Pearce Bespoke You must pay us a Brand Fund Fee of 2% of Gross Sales per week, which we may increase up to a maximum of 3% of Gross Sales per week. Pearce Bespoke administers the use of Brand Fund Fees collected from franchisees. Not all Pearce Bespoke franchisees will benefit directly or on a pro-rata basis from the Brand Fund's expenditures. We may contribute to the Brand Fund in our sole discretion and be reimbursed later by the Brand Fund. Pearce Bespoke does not prepare a financial statement as to the collection and use of Brand Fund Fees, nor are the Brand Fund Fees audited. Pearce Bespoke will, however, provide you (at your request) an accounting of the most recently completed fiscal year. Pearce Bespoke is not obligated to spend any amount of the Brand Fund Fee on advertising in the area or territory where you are located. Pearce Bespoke will carry over for future use Brand Fund Fees not spent in any fiscal year. While we do not
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 21–27)
What This Means (2025 FDD)
According to Pearce Bespoke's 2025 Franchise Disclosure Document, Pearce Bespoke has the authority to increase the Brand Fund Fee. Currently, franchisees must pay a Brand Fund Fee of 2% of Gross Sales per week. Pearce Bespoke retains the right to increase this fee up to a maximum of 3% of Gross Sales per week.
This means that a prospective Pearce Bespoke franchisee should be aware that their marketing costs could increase over time, impacting their profitability. While the increase is capped at 3%, this change could still affect a franchisee's financial planning and budgeting. It is important to note that Pearce Bespoke administers the use of these Brand Fund Fees and that not all franchisees will directly benefit from the expenditures on a pro-rata basis.
Pearce Bespoke does not provide a financial statement regarding the collection and use of Brand Fund Fees, nor are these fees audited. However, Pearce Bespoke will provide an accounting of the most recently completed fiscal year at the franchisee's request. Franchisees should also be aware that Pearce Bespoke is not obligated to spend any of the Brand Fund Fee on advertising specifically in the franchisee's area or territory. Any unspent Brand Fund Fees will be carried over for future use, and Pearce Bespoke reserves the right to use these funds for advertising or public relations that may solicit the sale of additional franchises.