What were the initial franchise fees collected by Pearce Bespoke in 2023?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
abilities and Members' Equity (Deficiency) | $ | 929,411 | $ | 71,811 |
PEARCE BESPOKE FRANCHISING, LLC STATEMENTS OF OPERATIONS AND MEMBERS' EQUITY (DEFICIENCY)
| Years Ended December 31, | |||
|---|---|---|---|
| 2023 | 2022 | ||
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 39)
What This Means (2025 FDD)
According to Pearce Bespoke's 2025 Franchise Disclosure Document, the company collected $164,210 in initial franchise fees during the year ended December 31, 2023. This indicates the revenue Pearce Bespoke generated from new franchisees joining the system during that year.
For a prospective franchisee, this figure provides insight into the growth and expansion of the Pearce Bespoke franchise system. It reflects the franchisor's ability to attract new franchisees and generate revenue through initial franchise fees. Monitoring this trend over several years can help potential franchisees assess the brand's popularity and stability.
It's important to note that initial franchise fees are typically recognized as revenue over the term of the franchise agreement, which for Pearce Bespoke is ten years. This accounting practice means that the $164,210 collected in 2023 would be recognized as revenue gradually over the subsequent ten years, rather than entirely in the year of collection. This revenue recognition method is a common practice in the franchise industry, aligning the revenue with the ongoing services and support provided to the franchisee throughout the term of the agreement.
In addition to the initial franchise fees, Pearce Bespoke also earns revenue from equipment fees, franchise royalties, and rebates, as detailed in the financial statements. These multiple revenue streams are typical for franchisors and contribute to the overall financial health and sustainability of the franchise system.