What is the minimum renewal fee for a Pearce Bespoke franchise?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
| Initial Franchise Fee (for | ||
|---|---|---|
| Number of Franchised | each Franchised | |
| Businesses | Business) | |
| First | $49,500 | |
| Second | $42,000 | |
| Third | $38,000 | |
| Fourth | $30,000 | |
| Fifth | $25,000 | |
| Thereafter | $20,000 |
Note 2 – Summary of Significant Accounting Policies – Continued
The initial fees are paid in consideration of the rights granted in the franchise agreement and are non-refundable. The initial fees are recognized as revenue over the term of the initial franchise agreement, which is ten years. Subject to certain requisites, the Company may renew the term of a franchisee upon expiration of the initial term, for an additional ten-year periods. The renewal fee, to be no more than 25% or $10,000 of the then current initial franchise fee, whichever is greater, i
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 39)
What This Means (2025 FDD)
According to the 2025 Pearce Bespoke Franchise Disclosure Document, franchisees may renew their franchise for additional ten-year periods, assuming they meet certain requirements. The renewal fee will be either 25% of the then-current initial franchise fee or $10,000, whichever amount is greater.
For a prospective Pearce Bespoke franchisee, this means that the minimum renewal fee will always be $10,000, regardless of how low the initial franchise fee might be at the time of renewal. However, if 25% of the initial franchise fee is greater than $10,000 at the time of renewal, the franchisee will be required to pay the higher amount.
This fee compensates Pearce Bespoke for granting the franchisee the rights to continue operating under the franchise agreement for another ten-year term. The FDD states that the renewal fee is non-refundable and is recognized as revenue by Pearce Bespoke over the renewal period.
It is important for prospective franchisees to consider this potential renewal fee when evaluating the long-term costs and benefits of investing in a Pearce Bespoke franchise. They should also inquire about the specific conditions or requirements that must be met to qualify for renewal.