What is the meaning of 'Mobile Franchise' in the context of a Pearce Bespoke franchise agreement?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
- A. We and you have entered into a certain Franchise Agreement dated the same date as this Agreement (the "Initial Franchise Agreement"), in which we have granted you the right to establish and operate one Pearce Bespoke franchised business within the protected territory set forth in the Initial Franchise Agreement (a "Mobile Franchise").
- B. We desire to grant to you the exclusive right to establish and operate a specified number of Businesses within a specified geographical area in accordance with a development schedule.
- C. If you are a corporation, limited liability company, partnership, or other entity (collectively, an "Entity"), all owners of a legal and/or beneficial interest in the Entity (the "Owners") are listed in Exhibit A to this Agreement.
- D. You desire to establish and operate additional Businesses upon the terms and conditions contained in our then-current standard franchise agreements (a "Franchise Agreement").
Source: Item 23 — RECEIPTS (FDD pages 39–172)
What This Means (2025 FDD)
According to the 2025 Pearce Bespoke Franchise Disclosure Document, a 'Mobile Franchise' refers to a franchised business that the franchisee is entitled to establish and operate within a protected territory, as defined in the Initial Franchise Agreement. This definition is found within the recitals of the Area Development Agreement.
Pearce Bespoke grants the franchisee the right to establish and operate one franchised business within a specific protected territory. The use of the term 'Mobile Franchise' suggests that the business may not be tied to a fixed, physical location, but the document does not explicitly state this. The franchisee's rights to use Pearce Bespoke's marks and system are granted only through the Franchise Agreements.
Furthermore, the Area Development Agreement grants the franchisee the right to establish and operate a specified number of businesses within a defined Development Area, according to a development schedule. Each Mobile Franchise opened within this area will have its own protected territory, as detailed in its individual Franchise Agreement. However, the Area Development Agreement alone does not grant the right to operate in any part of the Development Area until a new Franchise Agreement is signed that includes that portion as the franchisee's protected territory.
Pearce Bespoke retains the right to conduct business activities under any name and in any geographic area, except as expressly provided in Section 4.1 of the agreement, which pertains to the operation of Mobile Franchises within the Development Area. This includes the right to establish or license franchises or company-owned outlets offering similar products or services under different names or marks, both inside and outside the Development Area.