What is the initial term length for a Pearce Bespoke franchise license?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
| Initial Franchise Fee (for | ||
|---|---|---|
| Number of Franchised | each Franchised | |
| Businesses | Business) | |
| First | $49,500 | |
| Second | $42,000 | |
| Third | $38,000 | |
| Fourth | $30,000 | |
| Fifth | $25,000 | |
| Thereafter | $20,000 |
Note 2 – Summary of Significant Accounting Policies – Continued
The initial fees are paid in consideration of the rights granted in the franchise agreement and are non-refundable. The initial fees are recognized as revenue over the term of the initial franchise agreement, which is ten years. Subject to certain requisites, the Company may renew the term of a franchisee upon expiration of the initial term, for an additional ten-year periods. The renewal fee, to be no more than 25% or $10,000 of the then current initial franchise fee, whichever is greater, i
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 39)
What This Means (2025 FDD)
According to the 2025 Pearce Bespoke Franchise Disclosure Document, the initial term length for a franchise agreement is ten years. This means that a new franchisee will be granted the rights to operate a Pearce Bespoke franchise for a decade, during which time they will be subject to the terms and conditions outlined in the franchise agreement.
Pearce Bespoke may offer franchisees the opportunity to renew their franchise agreement for additional ten-year periods upon expiration of the initial term, subject to certain requirements. This provides an avenue for franchisees to continue operating their business under the Pearce Bespoke brand beyond the initial term, assuming they meet the necessary qualifications and agree to the terms of the renewal.
If a franchisee chooses to renew their agreement with Pearce Bespoke, they will need to pay a renewal fee. This fee will not exceed 25% of the then-current initial franchise fee or $10,000, whichever is greater. This renewal fee compensates Pearce Bespoke for granting the franchisee the rights to continue operating under the franchise agreement during the renewal period.