When is the Liquidated Damages fee due for Pearce Bespoke franchisees?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| meals, and wages, if applicable. | |||
| Liquidated Damages – Violation of Confidentiality or Non-Competition Covenants | $100,000, plus our attorneys’ fees | Per Occurrence | Payable to us if you violate the confidentiality and/or non- competition covenants in the Franchise Agreement |
Source: Item 6 — OTHER FEES (FDD pages 11–15)
What This Means (2025 FDD)
According to Pearce Bespoke's 2025 Franchise Disclosure Document, the liquidated damages fee is due per occurrence. This fee, amounting to $100,000 plus attorney's fees, becomes payable to Pearce Bespoke if a franchisee violates the confidentiality and/or non-competition covenants outlined in the Franchise Agreement.
For a prospective Pearce Bespoke franchisee, this means that engaging in activities that breach either the confidentiality or non-competition terms of the agreement can trigger a substantial financial penalty. The 'per occurrence' stipulation implies that each individual violation could result in the full liquidated damages amount being due.
It is important for franchisees to fully understand the scope and limitations of the confidentiality and non-competition clauses within their Franchise Agreement to avoid inadvertently triggering this fee. Franchisees should seek legal counsel to clarify these terms and ensure they are fully compliant in their business operations. This is a higher than average liquidated damages fee, as many franchise systems charge between $20,000-$50,000 for similar violations.