What is the minimum gross sales required for a Pearce Bespoke franchise in Year 3?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
| Period Following Original | Minimum Gross Sales |
|---|---|
| Opening Date | |
| Year 1 | $50,000 |
| Year 2 | $75,000 |
| Year 3 | $100,000 |
| Year 4+ | 10% increase over previous year minimum |
Source: Item 12 — TERRITORY (FDD pages 27–29)
What This Means (2025 FDD)
According to Pearce Bespoke's 2025 Franchise Disclosure Document, a franchisee must achieve a minimum gross sales of $100,000 in Year 3 of operation. This requirement is part of the Minimum Performance Standards that Pearce Bespoke sets to ensure franchisees are actively developing their business and maintaining the value of the franchise.
The minimum gross sales figures increase over the first few years, starting at $50,000 in Year 1 and $75,000 in Year 2, before reaching $100,000 in Year 3. After Year 3, the minimum gross sales requirement increases by 10% over the previous year's minimum. This escalating scale suggests that Pearce Bespoke expects franchisees to grow their sales consistently as their business matures.
For a prospective franchisee, understanding these minimum gross sales requirements is crucial for financial planning. Failing to meet these minimums could have consequences, potentially impacting the franchisee's ability to retain their territory. It is important to factor in these targets when projecting revenue and managing the business to ensure compliance with the franchise agreement.
The FDD also mentions minimum royalty payments required to retain the territory, which are separate from the gross sales figures. These payments also increase over time, starting at $100 per week in Year 1 and reaching $200 per week in Year 3, further emphasizing the importance of achieving sales targets to cover these obligations.