What is the minimum royalty payment for a Pearce Bespoke franchise during the third year?

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 third year of operation is $200 per week. This payment schedule is designed to ensure that franchisees maintain a certain level of financial commitment to the brand and their territory.

This minimum royalty payment is a fixed amount, unlike the more common percentage-based royalty fees found in many franchise systems. This means that regardless of the gross sales a Pearce Bespoke franchisee achieves in their third year, they must pay at least $200 per week in royalties. This could be beneficial if the franchisee's sales are low, as they won't pay a higher percentage-based royalty. However, it also means that during periods of high sales, the franchisee's royalty obligation remains constant at $200 per week, potentially representing a smaller percentage of their revenue compared to a traditional royalty structure.

It's important for prospective Pearce Bespoke franchisees to factor this fixed weekly royalty payment into their financial projections. They should assess whether their anticipated sales volume will comfortably support this minimum obligation, especially considering other operating expenses and potential fluctuations in revenue. Additionally, franchisees should be aware that the minimum royalty payment increases in subsequent years, with a 10% increase over the previous year's minimum starting in year four.