Which items in the Pearce Bespoke Franchise Disclosure Document provide more details regarding advertising obligations?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
n in any advertisement indicating that franchises are available.
You may develop advertising and marketing materials for your own use, at your own cost, if you follow the Business System standards and specifications, as outlined in the Manuals. Business System guidelines and your materials must be factually correct, accurately depict the Marks, and communicate the Pearce Bespoke™ brand position and character that Pearce Bespoke has established for Franchises. If you develop advertising or marketing materials, you must provide a copy of the materials to Pearce Bespoke for our review and approval (in writing) before you use the advertising or marketing materials. If you desire to advertise or market on the internet, you must obtain written authorization from Pearce Bespoke.
In the 2024 fiscal year, Pearce Bespoke collected $19,054.12 in Brand Fund Payments. We did not have any expenditures from the Brand Fund during the 2024 Fiscal Year.
Franchise Advisory Council
While Pearce Bespoke does not currently have a Franchisee Advisory Council ("FAC"), we reserve the right to formulate one in the future. Pearce Bespoke appoints franchisees to serve as members of the FAC. All FAC members must be in good standing and remain in good standing during their term. All members serve on the FAC for a term determined by Pearce Bespoke. The FAC serves in an advisory capacity to, among other objectives, provide advice on advertising, research, and promotional activities to Pearce Bespoke and its outside advertising agencies. Pearce Bespoke has the power to form, change or dissolve the FAC.
Local Marketing Cooperative
You also must participate in a local marketing cooperative ("Cooperative") if established in the designated market area ("DMA") where two (2) or more unaffiliated franchisees are located, including where you operate your Franchise. You will not be obligated to contribute more than 5% of the Gross Sales for your Franchise to the Cooperative ("Market Cooperative Contribution").
Each Cooperative must adopt written bylaws, which follow the format Pearce Bespoke has approved. You may request a copy of the bylaws of the Cooperative (if one has been established) for your DMA from the Cooperative president or Pearce Bespoke. Each Cooperative must follow voting procedures that are consistent with the general operating rules Pearce Bespoke has established. The members of the Cooperative and their elected officials will administer the Cooperative in your area. Pearce Bespoke strongly recommends that Cooperatives prepare annual financial statements and make those financial statements available to all franchisees in that Cooperative. Pearce Bespoke has the power to establish Cooperatives and the bylaws, policies, and rules under which the Cooperatives will operate.
Computer System Point-of-Sale System
You must install a computerized POS System ("POS System") purchased through Pearce Bespoke or a third-party Approved Supplier that we approve. There is an ongoing fee associated with the use of our POS System, once per month we will withhold the amount due to operate the POS System from one of your weekly payments. This POS system is periodically modified in response to business operations, marketing conditions, and changes in technology. POS System collects and holds various types of data essential for retail and business operations.
Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 20–21)
What This Means (2025 FDD)
According to the 2025 Pearce Bespoke Franchise Disclosure Document, Item 11 and Section 6(A) and 6(B) of Item 22 contain details regarding advertising obligations. Item 11 states that franchisees can develop their own advertising and marketing materials at their own cost, provided they adhere to the Business System standards outlined in the manuals. These materials must be factually correct, accurately depict the Marks, and align with the Pearce Bespoke brand. All advertising and marketing materials must be submitted to Pearce Bespoke for written approval before use, and written authorization is required for internet advertising or marketing. In 2024, Pearce Bespoke collected $19,054.12 in Brand Fund Payments, but had no expenditures from the Brand Fund during that fiscal year. Franchisees must participate in a local marketing cooperative if one is established in their designated market area, contributing up to 5% of their Gross Sales.
Section 6(A) and 6(B) of Item 22 outlines the franchisee's obligations for local marketing expenditures. If a franchisee's annual contributions to cooperative advertising programs are less than 5% of Gross Sales, or if a regional cooperative advertising program is not available in their area, the franchisee is obligated to conduct local advertising and marketing activities. These local marketing expenditures include advertising, merchandising, sales promotion, and other forms of marketing at the local level. These local marketing activities do not reduce or eliminate obligations under Section 6(A).
Within 30 days after the end of each calendar quarter, franchisees must provide Pearce Bespoke with an accounting of the monies spent on approved regional cooperative advertising and local marketing for the preceding quarter. If a franchisee fails to spend at least 5% of their Gross Sales on approved advertising, they may be required to deposit the difference with Pearce Bespoke. Pearce Bespoke will then spend this amount on advertising or marketing deemed appropriate for the franchisee's business, with reasonable efforts to focus on the franchisee's local geographic area. Franchisees also pay a Brand Fund Fee of 2% of weekly Gross Sales, which Pearce Bespoke can increase to 3% with 30 days' notice.