factual

What is the maximum annual increase allowed for the Pearce Bespoke Technology Fee?

Pearce_Bespoke Franchise · 2025 FDD

Answer from 2025 FDD Document

Type of Fee Amount Due Date Remarks
Contribution implementation we reserve the right to implement
one in the future, implemented by
Pearce Bespoke or the franchisees.
Local Marketing Minimum 5% of your Gross Minimum amount must be See Note 5 below. See Note 6 below
Expenses Sales spent during each calendar
year. We reserve the right to increase to a
maximum of 6% upon 30 days'
written notice
Transfer Fee Whichever is greater: Before completion of Subject to state law
(i) transfer
$10,000
or
(ii)
25% of
the then current franchise We will not charge Transfer Fee for
fee transfers to immediate family.
Audit Expenses Cost and expenses related As invoiced after Payable only if understatement is
to audit inspection greater than 2% of Gross Sales
or
audit
Renewal Fee Whichever is greater: 30 days before renewal of See Item 17(b). If you fail to timely
(i) Franchise Agreement meet any of the renewal conditions
$5,000,
or
(ii)
25% of
the then current franchise within the applicable timeframes, we
fee
may choose, in our
sole discretion and
without any obligation to do so, to
permit you
to renew, but you will be
required to pay a
renewal
administration charge of $500.
Technology Fee The fee is currently $25 Due at the same time as See Note 8
per Royalty Fees
week,
but
is
subject to
increases not to exceed We reserve the right to change the
10% annually. Technology Fee upon 60 days'
notice to you.
On a weekly basis, we will calculate
the Gross Sales, Net Sales, and
Credit Card Sales (defined below)
generated from the operation of your
Franchise
and pay you by EFT,
ACH, direct deposit, or by similar
means, the Net Sales generated from
the operation of your
Franchise
during
the previous calendar week
minus the amount you owe Us or our
affiliatesfor

Source: Item 6 — OTHER FEES (FDD pages 11–15)

What This Means (2025 FDD)

According to Pearce Bespoke's 2025 Franchise Disclosure Document, the Technology Fee is currently $25 per week, but Pearce Bespoke reserves the right to increase the Technology Fee. The maximum increase for the Technology Fee is 10% annually. Pearce Bespoke will provide franchisees with written notice of any change at least thirty (30) days prior to the implementation of the new fee amount.

This means that a prospective Pearce Bespoke franchisee could see their weekly Technology Fee increase by up to $2.50 per week each year (10% of the current $25 fee). While this may seem like a small amount, it could add up over time, especially if the franchisee operates multiple units. It is important to note that Pearce Bespoke also reserves the right to change the services included in the Technology Fee, so franchisees should be aware that they may be paying more for the same services in the future.

Franchisees are also responsible for any "per transaction" fee charged by third-party vendors for mobile application or online bookings. This is in addition to the weekly Technology Fee. It is important for prospective franchisees to understand all of the potential technology-related costs before investing in a Pearce Bespoke franchise. Franchisees should also inquire about the specific technology services covered by the fee and how those services might change over time.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.
All Pearce_Bespoke 2025 FAQs Ask FDD Ninja