How does the Maryland amendment modify Section 4 of the Pearce Bespoke Franchise Agreement regarding the initial franchise fee?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
Section 4 of the Franchise Agreement relating the payment of the Initial Franchise fee is hereby amended to state that the Franchisor will defer collection of the Initial Franchise Fee until Franchisor has fulfilled its initial pre-opening obligations and Franchisee may open for business.
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to Pearce Bespoke's 2025 Franchise Disclosure Document, the Maryland amendment modifies Section 4 of the Franchise Agreement, which concerns the initial franchise fee. Specifically, the amendment states that Pearce Bespoke will defer collecting the initial franchise fee from franchisees in Maryland.
This deferral means that Pearce Bespoke will wait to collect the initial franchise fee until it has fulfilled its pre-opening obligations to the franchisee. Furthermore, the franchisee must be able to open for business before the initial franchise fee is collected.
This modification provides a benefit to franchisees in Maryland, as they are not required to pay the initial franchise fee until Pearce Bespoke has provided the necessary support and the franchisee is ready to commence operations. This arrangement can reduce the financial burden on new franchisees and align the franchisor's interests with the franchisee's success in the initial stages of the business.