How is the initial franchise fee amount for a Pearce Bespoke franchise determined?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee will pay Franchisor a non-refundable Initial Franchise Fee equal to the amount listed in ATTACHMENT A - FRANCHISEE SPECIFIC TERMS of this Agreement, which will be fully earned and payable on the date of this Agreement. The Initial Franchise Fee payable by Franchisee is payment to Franchisor for the costs that it will incur to get Franchisee into business including costs Franchisor incurs for training, territory evaluation, business overhead costs, travel costs, and for the other initial services Franchisor provides hereunder.
Based upon Franchisor's financial condition, the Illinois Office of the Attorney General has required a Surety Bond be executed and on file with them in the amount of the initial (and development) fee multiplied by the number of franchises to be sold in Illinois.
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to the 2025 Pearce Bespoke Franchise Disclosure Document, the initial franchise fee is determined by the amount listed in Attachment A of the Franchise Agreement, specifically in the Franchisee Specific Terms. This fee is non-refundable and is fully earned and payable to Pearce Bespoke on the date the Franchise Agreement is signed.
The initial franchise fee serves as compensation to Pearce Bespoke for the expenses they incur in setting up the franchisee's business. These costs include training, territory evaluation, business overhead, and travel, as well as other initial services provided by Pearce Bespoke.
Prospective franchisees should carefully review Attachment A of the Franchise Agreement to understand the specific initial franchise fee amount applicable to them. Additionally, it's important to note that in Illinois, Pearce Bespoke is required to maintain a Surety Bond based on the initial fee multiplied by the number of franchises to be sold in the state, indicating the importance of this fee in the overall franchise structure.