For how long after a Destruction Event is a Pearce Bespoke Mobile Franchise considered 'in operation'?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
ning additional Businesses in your Development Area, you must: (i) possess sufficient financial and organizational capacity to develop, open, operate, and manage each additional Mobile Franchise in our reasonable judgment; (ii) be in full compliance with all brand requirements at any existing Businesses you operate; and (iii) be in compliance with any Franchise Agreement or any other agreement entered into with us.
- 3.2 Damaged Operating Assets. If the equipment and/or vehicles ("Operating Assets") used in the operation of any Mobile Franchise in your Development Schedule are destroyed or damaged by any cause beyond your control such that they may no longer continue to be utilized for the operation of a particular Business, you must immediately give us notice of such destruction or damage ("Destruction Event"). You must diligently work to repair and replace the Operating Assets of your Mobile Franchise as soon as possible to resume operation of your Business. If a Mobile Franchise is closed due to a Destruction Event, the Mobile Franchise will continue to be deemed "in operation" for the purpose of this Agreement for up to 30 days after the Destruction Event occurs. If a Mobile Franchise (i) is closed in a manner other than those described in this Section 3.2 or as otherwise agreed by us in writing or (ii) fails to reopen within 30 days after a Destruction Event, then we may exercise our rights under Section 6.2 (Our Remedies).
Source: Item 23 — RECEIPTS (FDD pages 39–172)
What This Means (2025 FDD)
According to Pearce Bespoke's 2025 Franchise Disclosure Document, a Mobile Franchise is considered 'in operation' for up to 30 days following a Destruction Event. A 'Destruction Event' refers to a situation where the equipment and/or vehicles ('Operating Assets') used in the operation of the Mobile Franchise are destroyed or damaged due to causes beyond the franchisee's control, making them unusable for the business.
This 30-day period allows the franchisee time to repair or replace the damaged Operating Assets and resume business operations. The franchisee must promptly notify Pearce Bespoke of the Destruction Event and diligently work towards restoring the Mobile Franchise's operational capacity.
However, if the Mobile Franchise remains closed for more than 30 days after the Destruction Event, Pearce Bespoke reserves the right to exercise its remedies as outlined in Section 6.2 of the agreement. An exception exists if the franchisee arranges for new Operating Assets within the initial 30 days and reopens the Mobile Franchise within 90 days of the Destruction Event. In such cases, Pearce Bespoke will not pursue those remedies. This clause encourages franchisees to act quickly to mitigate damages and resume operations to avoid potential penalties or termination of the franchise agreement.