Does Pearce Bespoke indemnify the franchisee against copyright infringement claims?

According to the 2025 Pearce Bespoke Franchise Disclosure Document, Pearce Bespoke does not offer franchisees protection against copyright infringement claims. Specifically, Pearce Bespoke does not contract to protect individual franchisees against infringement or unfair competition claims arising out of the franchisee's use of the copyrights, nor does it participate in the franchisee's defense or indemnify the franchisee. This means that if a franchisee is sued for copyright infringement related to their use of Pearce Bespoke's materials, Pearce Bespoke will not cover the franchisee's legal costs or any resulting damages. Pearce Bespoke retains the right to control any copyright litigation and will be the sole judge as to whether any suit will be brought or settled when any person or entity infringes Pearce Bespoke's copyrights.

This lack of indemnification places a significant risk on the franchisee. Should a copyright dispute arise, the franchisee would be solely responsible for all legal expenses and potential damages. This is a departure from some franchise systems where the franchisor provides some level of protection against intellectual property claims, especially when the franchisee is using materials or systems provided by the franchisor.

Prospective Pearce Bespoke franchisees should be aware of this potential liability and consider obtaining their own legal counsel to understand the full scope of their responsibilities. It would also be prudent to inquire with Pearce Bespoke about any history of copyright claims and the measures the company takes to ensure its materials do not infringe on the rights of others. Understanding these risks and taking proactive steps to mitigate them is crucial for any new franchisee.