What is the minimum royalty payment for a Pearce Bespoke franchise in Year 4 and beyond?
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, the minimum royalty payment for a franchise increases over the first four years. In Year 1, the minimum royalty payment is $100 per week, increasing to $150 per week in Year 2, and $200 per week in Year 3.
For Year 4 and beyond, the minimum royalty payment is subject to an increase of 10% over the previous year's minimum. This means that in Year 4, the minimum royalty payment would be $220 per week ($200 + 10% of $200). This amount will continue to increase by 10% each subsequent year.
It's important to note that these are minimum royalty payments required to retain the Franchised Territory. A Pearce Bespoke franchisee must ensure they can meet these increasing minimums to maintain their franchise rights. Prospective franchisees should carefully consider these escalating costs and factor them into their financial projections to ensure long-term viability.