When is the Liquidated Damages fee due to Pearce Bespoke for violating confidentiality or non-competition covenants?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
all costs including transportation, lodging, |
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| meals, and wages, if applicable. | |||
| Annual Certification Training | $199 per session | Yearly | All active clothiers will be required to attend our annual certification training (the "Annual Certification Training"), which may be held online or in person at a location that we designate. We anticipate the cost of recertification will be approximately $199 and will be held monthly. |
| Approval of Supplier Fee | $500 plus cost of examination and approval of a supplier requested by Franchisee. | Prior to examination | You will purchase only such types, models or brands of items, furniture, equipment, signs, and supplies that We approve for Pearce Bespoke as meeting its specifications and standards, including specifications and standards for quality, design, warranties, appearance, function, and performance. |
| Operational Standards | $250 to $1,000 per occurrence | As incurred | Payable to us. |
| Violation Fee | |||
| 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 |
Notes:
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- Except where otherwise noted, all fees are payable to Pearce Bespoke, are uniformly imposed, and are non-refundable.
Source: Item 6 — OTHER FEES (FDD pages 11–15)
What This Means (2025 FDD)
According to Pearce Bespoke's 2025 Franchise Disclosure Document, a franchisee must pay liquidated damages for violating confidentiality or non-competition covenants on a per occurrence basis. The liquidated damages amount to $100,000, in addition to Pearce Bespoke's attorneys' fees.
This fee is payable to Pearce Bespoke if the franchisee violates the confidentiality and/or non-competition covenants outlined in the Franchise Agreement. These covenants are designed to protect Pearce Bespoke's proprietary information and market position.
Liquidated damages are a common mechanism in franchise agreements to compensate the franchisor for damages that are difficult to precisely quantify. The franchisee should carefully review the specific confidentiality and non-competition clauses in the Franchise Agreement to fully understand the scope of these restrictions and the potential financial consequences of violating them.