What is the minimum Transfer Fee for a Pearce Bespoke franchise?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Contribution | implementation | we reserve the right to implement | |
| one in the future, implemented by | |||
| Pearce Bespoke or the franchisees. | |||
| Local Marketing | Minimum 5% of your Gross | Minimum amount must be | See Note 5 below. See Note 6 below |
| Expenses | Sales | spent during each calendar | |
| year. | We reserve the right to increase to a | ||
| maximum of 6% upon 30 days' | |||
| written notice | |||
| Transfer Fee | Whichever is greater: | Before completion of | Subject to state law |
| (i) | transfer | ||
| $10,000 | |||
| or | |||
| (ii) | |||
| 25% of | |||
| the then current franchise | We will not charge Transfer Fee for | ||
| fee |
Source: Item 6 — OTHER FEES (FDD pages 11–15)
What This Means (2025 FDD)
According to Pearce Bespoke's 2025 Franchise Disclosure Document, the transfer fee is whichever is greater between $10,000 or 25% of the then-current franchise fee. This fee is due before the completion of the transfer and is subject to state law. However, Pearce Bespoke will not charge a transfer fee for transfers to immediate family members.
For a prospective Pearce Bespoke franchisee, this means that if they decide to sell their franchise to a third party, they will need to pay a transfer fee to Pearce Bespoke. The actual amount will depend on the franchise fee at the time of the transfer, but it will be at least $10,000. This fee covers Pearce Bespoke's administrative costs and ensures that the new franchisee meets their standards.
The transfer fee is a standard practice in franchising. It is important to note that the transfer fee does not apply to transfers to immediate family members, which can be a significant benefit for franchisees who wish to pass their business on to their children or other close relatives. Franchisees should be aware of the transfer fee and factor it into their decision-making process when considering selling their franchise.