How long does Pearce Bespoke have to notify the franchisee of their interest in negotiating to purchase the franchise after receiving the franchisee's written notice?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
Upon Franchisor's receipt of written notice specifying the proposed price and terms of a proposed sale or transfer of Franchisee's business or interest therein, Franchisor will give Franchisee written notice within ten (10) business days thereafter if Franchisor has an interest in negotiating to purchase the business or interest being offered according to the proposed terms. If Franchisor commences negotiations to purchase Franchisee's business or interest therein as described herein, Franchisee may not sell the business or interest being offered to a third party for at least thirty (30) days or until Franchisor and Franchisee agree in writing that the negotiations have terminated, whichever comes first. If Franchisor waives its right to purchase, Franchisee may complete the sale or transfer of the business or interest therein according to the terms described in the written notice to Franchisor but
not upon more favorable terms.
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to Pearce Bespoke's 2025 Franchise Disclosure Document, if a franchisee intends to sell their franchise to a third party, they must first offer it to Pearce Bespoke in writing, including all material terms of the proposed sale. After Pearce Bespoke receives this written notice, they have ten business days to notify the franchisee if they are interested in negotiating a purchase of the franchise.
If Pearce Bespoke expresses interest in negotiating, the franchisee cannot sell to a third party for at least 30 days, or until Pearce Bespoke and the franchisee agree in writing that negotiations have ended, whichever occurs first. This gives Pearce Bespoke time to conduct due diligence and potentially come to an agreement with the franchisee.
If Pearce Bespoke waives its right to purchase the franchise, the franchisee is then free to complete the sale to the third party under the terms specified in the original notice to Pearce Bespoke, but not on more favorable terms. This entire process ensures that Pearce Bespoke has the first opportunity to acquire the franchise before it is sold to an outside party, allowing them to maintain control over their brand and network.