What is the minimum weekly royalty fee a Pearce Bespoke franchisee must pay in Year 3 and beyond?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee will, for the term of this Agreement, pay to Franchisor a Royalty Fee equal to the greater of (i) ten percent (10%) of Franchisee's Gross Sales (as defined below), or (ii) a mandatory Minimum Weekly Royalty Fee (as defined in Section 5(B) below). Franchisee's obligation to pay Franchisor the Royalty Fee under the terms of this Agreement will remain in full force and effect until this Agreement has expired or is terminated or transferred under the provisions herein.
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
Based on the 2025 Pearce Bespoke Franchise Disclosure Document, franchisees are obligated to pay a royalty fee for the duration of their agreement. This royalty fee is calculated as the greater of either 10% of the franchisee's Gross Sales or a mandatory Minimum Weekly Royalty Fee. The specific amount of the Minimum Weekly Royalty Fee is not defined within the provided excerpts.
As the exact minimum weekly royalty fee is not specified here, prospective Pearce Bespoke franchisees should carefully review the full Franchise Agreement and any associated exhibits or attachments. These documents should outline the precise amount of the Minimum Weekly Royalty Fee applicable in Year 3 and subsequent years.
To gain a comprehensive understanding of the royalty fee structure, it is essential for potential franchisees to discuss this in detail with the franchisor. Clarifying the factors that could influence changes to the minimum weekly royalty fee over time is also crucial for financial planning.