What is the minimum royalty payment for a Pearce Bespoke franchise in Year 4?
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 increases over the first three years of operation.
For Year 1, the minimum royalty payment is $100 per week. This increases to $150 per week in Year 2, and then to $200 per week in Year 3.
In Year 4 and beyond, the minimum royalty payment increases by 10% over the previous year's minimum. Therefore, in Year 4, the minimum royalty payment would be $220 per week ($200 + 10% of $200). This escalating minimum royalty payment structure means that franchisees must continually increase their revenue to maintain profitability as their minimum royalty obligations grow.
Prospective franchisees should carefully consider these escalating minimum royalty payments and ensure their business plan accounts for these increasing costs. It is important to evaluate whether the territory can generate sufficient revenue to comfortably exceed these minimums and provide a reasonable return on investment.