How long does Pearce Bespoke have to exercise its right of first refusal on a transfer?

According to Pearce Bespoke's 2025 Franchise Disclosure Document, Pearce Bespoke has 30 days to exercise its right of first refusal regarding a transfer of the Development Agreement. This right is triggered when Pearce Bespoke receives an executed copy of the transfer contract. This applies to transfers of the Development Agreement, any interest in it, or any interest in the business entity if the franchisee is not an individual.

This right of first refusal means that if a franchisee finds a buyer for their Pearce Bespoke franchise or development rights, they must first offer Pearce Bespoke the opportunity to purchase the franchise on the same terms as the proposed buyer. Pearce Bespoke has 30 days to decide whether to exercise this right. If Pearce Bespoke matches the offer, they can acquire the franchise instead of the proposed buyer.

For a prospective franchisee, this means that selling the franchise may take longer, as a potential buyer must wait 30 days for Pearce Bespoke to make a decision. Pearce Bespoke also has considerable discretion in approving or disapproving any transfer, and in setting conditions for approval. This could impact the franchisee's ability to sell the business to their preferred buyer or on their preferred timeline. It is important to note that the terms of the Development Agreement are subject to applicable state laws, which may affect the enforceability of certain provisions.