How much notice will a Pearce Bespoke franchisee receive before the Brand Fund Fee is increased?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
In addition to Franchisee's cooperative and local advertising obligations described in Section 6(A) and 6(B) above, Franchisee will pay Franchisor two percent (2%) of weekly Gross Sales. Franchisor reserves the right to increase the Brand Fund Fee up to three percent (3%) of Gross Sales upon thirty (30) days' notice. Franchisor will withhold this amount from the Franchisee Share, as detailed in Section 5(C).
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to Pearce Bespoke's 2025 Franchise Disclosure Document, franchisees will receive 30 days' notice before an increase to the Brand Fund Fee. The Brand Fund Fee is initially set at two percent of weekly gross sales. Pearce Bespoke retains the right to increase this fee up to a maximum of three percent of gross sales.
This means that Pearce Bespoke franchisees should be prepared for potential increases to the Brand Fund Fee, which could impact their profitability. It is important for prospective franchisees to factor in this potential increase when evaluating the financial viability of the franchise. Understanding the circumstances under which Pearce Bespoke might raise the fee, and how the funds are used, is crucial for financial planning.
Franchisees should also be aware that this Brand Fund Fee is separate from any cooperative or local advertising obligations. Therefore, an increase in the Brand Fund Fee would be in addition to any existing advertising expenses, potentially raising the overall marketing costs for the franchise. This highlights the importance of carefully reviewing all financial obligations outlined in the Franchise Agreement and understanding how they may change over time.