What is the minimum royalty payment for a Pearce Bespoke franchise during the second year?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
| Period Following Original | Minimum Royalty Payment |
|---|---|
| Opening Date | |
| Year 1 | $100 per week |
| Year 2 | $150 per week |
| Year 3 | $200 per week |
| 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, franchisees are required to make minimum weekly royalty payments to retain their Franchised Territory. The minimum royalty payment for a Pearce Bespoke franchise during the second year of operation is $150 per week. This is part of a schedule that increases the minimum royalty payment over the first few years.
Specifically, in the first year, the minimum royalty payment is $100 per week. By the third year, this increases to $200 per week. After the fourth year, the minimum royalty payment increases by 10% over the previous year's minimum.
This escalating minimum royalty payment structure means that Pearce Bespoke franchisees need to increase their revenue to cover these rising costs. Franchisees should factor these increasing minimums into their financial projections and business plans to ensure they can maintain profitability and retain their territory as their franchise matures.