For how long is a Pearce Bespoke Mobile Franchise deemed 'in operation' after a 'Destruction Event'?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
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). In the event the Operating Assets are completely destroyed or otherwise incapable of being repaired following a Destruction Event, we will not exercise the remedies set forth under Section 6.2 provided, that (a) within the 30 days after the Destruction Event you have made arrangements with us or our designated supplier to obtain new Operating Assets for use in your Business; and (b) you are open and operating your Mobile Franchise in the protected territory within ninety (90) days of the Destruction Event.
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,' which is defined as when the equipment or vehicles used to operate the franchise are damaged or destroyed by causes beyond the franchisee's control. The franchisee must notify Pearce Bespoke immediately after such an event and diligently work to repair or replace the damaged assets to resume business operations.
However, Pearce Bespoke may exercise its rights and remedies if the Mobile Franchise remains closed for more than 30 days after the Destruction Event, unless otherwise agreed to in writing. If the Operating Assets are completely destroyed or cannot be repaired, Pearce Bespoke will not exercise those remedies if the franchisee arranges for new Operating Assets within 30 days of the Destruction Event and reopens the Mobile Franchise within 90 days of the Destruction Event.
This clause protects the franchisee to some extent, allowing time to recover from unforeseen disasters without immediately facing penalties or termination. However, it also places a responsibility on the franchisee to act quickly and decisively to restore the business to operational status. The franchisee bears the risk of ensuring they can secure new assets and reopen within the specified timeframes to avoid potential repercussions from Pearce Bespoke.