When is the Pearce Bespoke indemnification fee due?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Indemnification | All costs, including attorneys' fees | Upon settlement or conclusion of claim or action | You will defend all litigation, arbitration, mediation, and other dispute resolution efforts at your own expense and hold us harmless against damages resulting from the operation of your Franchise. |
Source: Item 6 — OTHER FEES (FDD pages 11–15)
What This Means (2025 FDD)
According to Pearce Bespoke's 2025 Franchise Disclosure Document, the indemnification fee, covering all costs including attorney's fees, is due upon the settlement or conclusion of a claim or action. This means a franchisee will not be charged this fee upfront or on a regular basis, but rather if a specific legal claim or action arises related to the operation of their Pearce Bespoke franchise.
The FDD specifies that franchisees are responsible for defending all litigation, arbitration, mediation, and other dispute resolution efforts at their own expense. Furthermore, franchisees must hold Pearce Bespoke harmless against damages resulting from the operation of their franchise. This indicates that the franchisee bears the primary responsibility for legal defense and any resulting damages.
In practical terms, this means that if a customer sues a Pearce Bespoke franchisee over something related to their business operations, the franchisee is responsible for their own legal defense. If the claim is settled or a judgment is reached, the franchisee is also responsible for covering Pearce Bespoke's associated costs, including attorney's fees, as part of the indemnification. This is a fairly standard clause in franchise agreements, designed to protect the franchisor from liabilities arising from the franchisee's actions.