To whom is the Local Marketing Expenses payment made for a Pearce Bespoke franchise?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Local Marketing | Minimum 5% of your Gross | Minimum amount must be | See Note 5 below. See Note 6 below |
| Expenses | Sales | spent during each calendar | |
| year. | We reserve the right to increase to a | ||
| maximum of 6% upon 30 days' | |||
| written notice |
-
- To the extent your annual contributions to cooperative advertising programs are less than 5% of the Gross Sales for your Franchise, you must conduct additional advertising and marketing activities in your local geographic area. Your local advertising activities, however, will not eliminate your obligations to contribute to cooperative advertising programs. If you do not spend at least 5% of Gross Sales for the calendar year for cooperative or local advertising, we may require that you pay Pearce Bespoke the difference between what you should have spent and what you actually spent on advertising initiatives in your market for the previous calendar year, at Pearce Bespoke's sole discretion.
| Insurance | Generally, between | Upon insurance | weekly payments. Payable to Pearce Bespoke if you fail | | | $1,000 - $2,000 but it | company request | to pay insurance premium and | | | will | | Pearce Bespoke pays it for you. |
Source: Item 6 — OTHER FEES (FDD pages 11–15)
What This Means (2025 FDD)
According to Pearce Bespoke's 2025 Franchise Disclosure Document, franchisees are generally required to spend a minimum of 5% of their gross sales on local marketing expenses each calendar year. However, if a franchisee's annual contributions to cooperative advertising programs are less than 5% of their gross sales, they must conduct additional local advertising and marketing activities.
If a Pearce Bespoke franchisee does not spend at least 5% of gross sales on cooperative or local advertising, Pearce Bespoke may require the franchisee to pay the difference between what they should have spent and what they actually spent on advertising initiatives in their market for the previous calendar year. This payment is made at Pearce Bespoke's sole discretion.
In cases where the franchisee fails to pay their insurance premium, the franchisee will be required to make the payment to Pearce Bespoke. Pearce Bespoke will then pay the insurance company on behalf of the franchisee.