What is the minimum weekly royalty payment for a Pearce Bespoke franchise in Year 1?
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, franchisees are required to make minimum weekly royalty payments to maintain their franchised territory. The minimum royalty payment schedule begins after the franchise agreement is executed.
For a Pearce Bespoke franchise, the minimum weekly royalty payment in Year 1 is $100. This means that regardless of the franchisee's gross sales, they must pay at least $100 each week in royalties to Pearce Bespoke.
The minimum weekly royalty payments increase in subsequent years. In Year 2, the minimum payment is $150 per week, and in Year 3, it rises to $200 per week. After Year 3, the minimum weekly royalty payment increases by 10% over the previous year's minimum. This escalating payment structure means that franchisees need to increase their revenue to cover these rising costs.
It is important for prospective Pearce Bespoke franchisees to factor these minimum royalty payments into their financial projections to ensure they can meet these obligations, especially during the initial years of operation when building a customer base.