Is the late renewal administration charge for Pearce Bespoke franchises in addition to the renewal fee?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
ior to the expiration of the then existing term a general release in favor of Franchisor, its Affiliates and related individuals and entities, from any claims arising before or during the term hereof; and
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- If Franchisee fails to timely meet any of the renewal conditions within the applicable timeframes, Franchisor may choose, in its sole discretion and without any obligation to do s
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to Pearce Bespoke's 2025 Franchise Disclosure Document, a late renewal administration charge is in addition to the standard renewal fee. If a franchisee fails to meet the renewal conditions within the specified timeframes, Pearce Bespoke may, at its discretion, allow the franchisee to renew, but this is subject to a late renewal administration charge of $500.
This $500 charge is separate from the Renewal Fee itself. The Renewal Fee is the greater of $5,000 or 25% of the then-current franchise fee. Therefore, a franchisee who is late in meeting the renewal conditions would have to pay both the Renewal Fee and the $500 late renewal administration charge.
This policy incentivizes Pearce Bespoke franchisees to adhere to the renewal timelines and conditions outlined in the franchise agreement. Failing to do so can result in additional costs, although Pearce Bespoke retains the discretion to permit late renewals subject to the additional charge.