What is the minimum royalty payment for a Pearce Bespoke franchise during the first year after the opening date?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
on of the Franchise Agreement, the Minimum Royalty Payment schedule is as follows:
| Period Following Original | Minimum Royalty Payment |
|---|---|
| Opening Date | |
| Year 1 | $100 per week |
| Year 2 | $150 per week |
| Year 3 | $200 |
Source: Item 12 — TERRITORY (FDD pages 27–29)
What This Means (2025 FDD)
According to Pearce Bespoke's 2025 Franchise Disclosure Document, franchisees are required to make minimum weekly royalty payments to retain their Franchised Territory. During the first year after the opening date, the minimum royalty payment is $100 per week. This means that a Pearce Bespoke franchisee must pay at least $100 each week in royalties to Pearce Bespoke, regardless of their gross sales.
This minimum royalty payment structure is designed to ensure that Pearce Bespoke receives a consistent income stream from each franchise location. It also incentivizes franchisees to achieve a certain level of sales to cover this weekly cost. For a prospective franchisee, this means they need to factor in this fixed weekly expense when projecting their operating costs and potential profitability.
It's important to note that this is a minimum royalty payment. If the standard royalty calculation (typically a percentage of gross sales) exceeds $100 in any given week, the franchisee would be required to pay the higher amount. The FDD does not specify what percentage of gross sales the standard royalty is. Franchisees should carefully consider their projected sales volume and potential royalty obligations to determine if they can meet these financial requirements and still operate a profitable business.