What is the meaning of 'Approved Suppliers' in the context of a Pearce Bespoke franchise?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
s and distributers used in operating your Franchise.
Pearce Bespoke has negotiated or will negotiate programs with several manufacturers and suppliers so that franchisees may benefit from volume purchasing and prepaid freight programs. Third party vendors may charge franchisees directly for products or services. The Business System's standards and specifications are based upon our experience with various vendors, contractors, and suppliers in the custom clothing and franchising industries and we will provide you with a list of our approved suppliers ("Approved Suppliers"). Pearce Bespoke retains the sole and absolute discretion to make the final determination on all Approved Suppliers, however, we will consider supplier approval requests from franchisees upon written request. We will approve or disapprove a supplier within 30 days after we receive written notice from you. All suppliers you use must be approved by us before you can use them and may be subject to our training and reporting requirements.
Pearce Bespoke is an Approved Supplier for certain items for which you are contractually obligated to purchase in the operation of your Franchise. Pearce Bespoke, its officers and/or persons affiliated with us, may now or in the future own an interest in Pearce Bespoke and be Approved Suppliers of certain items of the Business System. Pearce Bespoke officers do not own any interest in any Approved Supplier. Approved Supplier items include, but shall not limited to, recruiting services, computer hardware, software, collaboration and communication services, telephone, information management system, credit/debit card processing, criminal history background checks, email marketing, online accounting, virtual phone systems and client online surveys. You must license the POS/CRM software and purchase the computer hardware components for the POS System (the "POS System") either from us or a third-party vendor which may be modified from time to time in the Manuals. In the last fiscal year ending on December 31, 2023, we had total revenues of $572,535 of which $234,000, or 40.1%, was derived in revenue from required franchisee purchases or leases. Our affiliates have not received any other rebates, discounts or other material consideration from any other suppliers based on your required purchases of products, supplies or equipment.
To ensure a uniform image and quality of products and services throughout the Pearce Bespoke Business System, you must maintain the standards and specifications in accordance with the Manuals. You must comply with Pearce Bespoke's then-current approved standards and specifications in the Manuals in
operating and equipping your Franchise. You must use equipment (including hardware and certain software programs for the POS System), signs, items, furnishings, products, supplies, and advertising and sales promotion materials which meet the standards and specifications of Pearce Bespoke's Business System. In addition, you may sell from your Franchise only those categories of products and services that Pearce Bespoke approves. Pearce Bespoke periodically publishes for franchisees a list approved product categories for use in a Franchise. Pearce Bespoke may periodically update and alter these categories of products and services you may sell from your Franchise. Pearce Bespoke's Manuals currently establish standards and specifications for men's and women's clothing and other items sold in your Franchise.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 19–20)
What This Means (2025 FDD)
According to Pearce Bespoke's 2025 Franchise Disclosure Document, Approved Suppliers are manufacturers and suppliers that Pearce Bespoke has negotiated programs with, allowing franchisees to benefit from volume purchasing and prepaid freight programs. Pearce Bespoke retains the sole discretion to determine the Approved Suppliers. However, Pearce Bespoke will consider supplier approval requests from franchisees upon written request and will approve or disapprove a supplier within 30 days after receiving written notice. All suppliers must be approved by Pearce Bespoke before franchisees can use them and may be subject to training and reporting requirements.
Pearce Bespoke may provide certain services and data to Approved Suppliers. Pearce Bespoke and/or its affiliates may negotiate supply contracts with Approved Suppliers or other suppliers, potentially receiving compensation from these suppliers due to dealings with Pearce Bespoke, its franchisees, or the Business System. These compensations can take various forms, such as barters, cash, credit, rebates, allowances, or commissions, and Pearce Bespoke can use these amounts for any purpose it deems appropriate.
Pearce Bespoke itself is an Approved Supplier for certain items that franchisees are contractually obligated to purchase. These items include recruiting services, computer hardware, software, collaboration and communication services, telephone, information management system, credit/debit card processing, criminal history background checks, email marketing, online accounting, virtual phone systems, and client online surveys. In the fiscal year ending December 31, 2023, Pearce Bespoke's total revenues were $572,535, with $234,000 (40.1%) derived from required franchisee purchases or leases. Franchisees must license the POS/CRM software and purchase the computer hardware components for the POS System either from Pearce Bespoke or a third-party vendor.