What is the minimum weekly royalty payment for a Pearce Bespoke franchise in Year 2?
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 weekly royalty payment for a Pearce Bespoke franchise in Year 2 is $150.
This means that even if a franchisee's sales are low, they must still pay at least $150 each week to Pearce Bespoke to maintain their rights to the territory. This minimum payment increases over time, reaching $200 per week in Year 3, and then increasing by 10% each year from Year 4 onwards.
Prospective franchisees should carefully consider these minimum royalty payments and ensure they have sufficient capital to cover these costs, especially during the initial years of operation when sales may be lower. It's important to factor in these increasing minimums when projecting profitability and cash flow for the Pearce Bespoke franchise.