How does the Maryland amendment modify Section 2 of the Pearce Bespoke Area Development Agreement regarding the Franchise Fee?

According to the 2025 Pearce Bespoke Franchise Disclosure Document, the Maryland amendment modifies Section 2 of the Area Development Agreement to defer the collection of the Franchise Fee. Specifically, Pearce Bespoke will not collect the Franchise Fee until the first franchise under the development agreement opens. This amendment ensures that the franchisee does not have to pay the franchise fee until they are closer to generating revenue.

This modification is beneficial for prospective Pearce Bespoke area developers in Maryland as it reduces the initial financial burden. Instead of paying the franchise fee upfront, the payment is deferred until the first franchise location is ready to open. This can help with cash flow management during the initial setup phase of the business.

It is important for prospective franchisees to understand the specific conditions and obligations related to this deferral. While the amendment defers the fee, it does not eliminate it. Franchisees should confirm with Pearce Bespoke the exact timing of when the franchise fee becomes due and payable, and ensure they have sufficient funds available at that time. This amendment is specific to Maryland and may not apply in other states, so franchisees should be aware of the regulations in their specific location.