For how long after the Pearce Bespoke franchise is terminated or expires is the franchisee prohibited from involvement in a competing business?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise | Summary | |
|---|---|---|---|
| Agreement | |||
| a. | Length of the franchise | Section 2(A) | 10 years |
| b. | Renewal or extension of the term | Section 2(B) | If you meet the renewal requirements set forth in the Franchise Agreement, you can renew the Franchise Agreement for up to two additional 5-year period(s). |
| c. | Requirements for you to renew or extend | Section 2(B) | Provide advance notice in writing, sign then current Franchise Agreement, pay renewal fee, remodel, meet all current Brand Standards, secure extension of lease and be in compliance with current Franchise Agreement during the term of the Agreement. You may be asked to sign a Franchise Agreement with materially different terms and conditions than your original Franchise Agreement. The entire provision is subject to state law. |
| d. | Termination by you | Section 16(A) | If you are complying with the Franchise Agreement, and Pearce Bespoke fails to cure a material default within 30 days after Pearce Bespoke’s receipt of written notice, subject to state law. |
| e. | Termination by Pearce Bespoke without cause | Not Applicable | Not Applicable |
| f. | Termination by Pearce Bespoke with cause | Sections 15(A) and (B) | Pearce Bespoke can terminate the Franchise Agreement only if you default. Subject to state law. |
| g. | “Cause” defined – curable defaults | Sections 15(A) and (B) | You have 30 days to cure a violation of any material provision of the Franchise Agreement, non-payment of amounts owed to Pearce Bespoke or any applicable local advertising cooperative, failure to abide by Pearce Bespoke’s standards and requirements in operating the Franchise, an assignment of assets to creditors and the expiration or termination of the Franchise’s lease. Subject to state law. |
| Provision | Section in Franchise Agreement | Summary offering Pearce Bespoke a right of first refusal; if assignee is your spouse or child, no transfer fee is required. | |
| q. | Non-competition covenants during the term of the franchise | Section 18(A) | No direct or indirect involvement in any resale mobile business involving the purchase and/or sale of custom clothing and accessories other than the one authorized in the Franchise Agreement, without Pearce Bespoke’s prior written consent, subject to state law. |
| r. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 31–34)
What This Means (2025 FDD)
According to Pearce Bespoke's 2025 Franchise Disclosure Document, a franchisee is restricted from engaging in any resale mobile business involving the purchase and/or sale of custom clothing and accessories for a period of 2 years. This restriction applies within a 10-mile radius of the franchisee's former Pearce Bespoke franchise location or any other Pearce Bespoke franchise. This non-compete agreement takes effect after the franchise is terminated or expires.
It's important to note that if a Pearce Bespoke franchisee breaches this non-competition covenant, the period of non-competition will be extended. The extension will be equal to the duration the franchisee operated a competing business. This clause aims to prevent franchisees from immediately leveraging their knowledge and resources gained from Pearce Bespoke to directly compete against the franchise system.
Prospective Pearce Bespoke franchisees should carefully consider the implications of this non-compete agreement. The 10-mile radius could significantly limit business opportunities after leaving the franchise. The FDD also states that these non-competition covenants are subject to state law, meaning the enforceability and specific terms may vary depending on the franchisee's location. It would be prudent to seek legal counsel to fully understand the restrictions and their potential impact.
This type of non-compete clause is common in franchising to protect the brand's market share and confidential information. However, the specific duration and geographic scope can vary widely across different franchise systems. Franchisees should evaluate these terms in light of their long-term career goals and local market conditions.