What interest rate is used in the vehicle financing example for a Pearce Bespoke franchise?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
Should you choose to finance your vehicle, our estimates are based on a 20% deposit on the final purchase invoice with the remainder financed over a 60-month term at an interest rate of 3%.
The high side of our estimate is based upon three months of payments.
Your deposit, term, and interest may vary.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 15–19)
What This Means (2025 FDD)
According to the 2025 Pearce Bespoke Franchise Disclosure Document, the example provided for vehicle financing assumes a 3% interest rate. This rate is part of an example where a franchisee makes a 20% deposit on a vehicle priced between $21,000 and $30,000, and finances the remaining balance over a 60-month term. The high side of the vehicle lease estimate is based on three months of payments.
It's important to note that this is just an example, and the actual interest rate a franchisee receives may vary. The FDD explicitly states that the franchisee's deposit, term, and interest rate may differ from the example. Factors influencing the actual rate could include the franchisee's creditworthiness, the financing source (bank or private financing company), and prevailing market conditions.
Prospective Pearce Bespoke franchisees should use this 3% example as a general reference point, but they should also shop around for the best financing options available to them. They should obtain quotes from multiple lenders and carefully compare the terms and conditions, including the interest rate, loan term, and any associated fees. Understanding these details will allow franchisees to make informed decisions about vehicle financing and manage their initial investment effectively.