Does Pearce Bespoke negotiate programs with manufacturers and suppliers, and if so, what is the purpose of these programs?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
s and distributers used in operating your Franchise.
Pearce Bespoke has negotiated or will negotiate programs with several manufacturers and suppliers so that franchisees may benefit from volume purchasing and prepaid freight programs. Third party vendors may charge franchisees directly for products or services. The Business System's standards and specifications are based upon our experience with various vendors, contractors, and suppliers in the custom clothing and franchising industries and we will provide you with a list of our approved suppliers ("Approved Suppliers"). Pearce Bespoke retains the sole and absolute discretion to make the final determination on all Approved Suppliers, however, we will consider supplier approval requests from franchisees upon written request. We will approve or disapprove a supplier within 30 days after we receive written notice from you. All suppliers you use must be approved by us before you can use them and may be subject to our training and reporting requirements.
Pearce Bespoke is an Approved Supplier for certain items for which you are contractually obligated to purchase in the operation of your Franchise. Pearce Bespoke, its officers and/or persons affiliated with us, may now or in the future own an interest in Pearce Bespoke and be Approved Suppliers of certain items of the Business System. Pearce Bespoke officers do not own any interest in any Approved Supplier. Approved Supplier items include, but shall not limited to, recruiting services, computer hardware, software, collaboration and communication services, telephone, information management system, credit/debit card processing, criminal history background checks, email marketing, online accounting, virtual phone systems and client online surveys. You must license the POS/CRM software and purchase the computer hardware components for the POS System (the "POS System") either from us or a third-party vendor which may be modified from time to time in the Manuals. In the last fiscal year ending on December 31, 2023, we had total revenues of $572,535 of which $234,000, or 40.1%, was derived in revenue from required franchisee purchases or leases. Our affiliates have not received any other rebates, discounts or other material consideration from any other suppliers based on your required purchases of products, supplies or equipment.
To ensure a uniform image and quality of products and services throughout the Pearce Bespoke Business System, you must maintain the standards and specifications in accordance with the Manuals. You must comply with Pearce Bespoke's then-current approved standards and specifications in the Manuals in
operating and equipping your Franchise. You must use equipment (including hardware and certain software programs for the POS System), signs, items, furnishings, products, supplies, and advertising and sales promotion materials which meet the standards and specifications of Pearce Bespoke's Business System. In addition, you may sell from your Franchise only those categories of products and services that Pearce Bespoke approves. Pearce Bespoke periodically publishes for franchisees a list approved product categories for use in a Franchise. Pearce Bespoke may periodically update and alter these categories of products and services you may sell from your Franchise. Pearce Bespoke's Manuals currently establish standards and specifications for men's and women's clothing and other items sold in your Franchise. Franchisee will have the right to advertise and sell its products at whatever prices Franchisee determines.
You must purchase and maintain, at your expense, comprehensive general liability insurance in an amount Pearce Bespoke will designate periodically, but at least $1,000,000 per occurrence and $2,000,000 in the aggregate. Thisinsurance must insure Pearce Bespoke, you and any other person Pearce Bespoke designates from liability for all damage or injury. You must also purchase business interruption insurance, business personal property insurance, money, and securities insurance, and building insurance (if applicable). In addition, you must maintain any other insurance as may be required under law.
The products or services we require you to purchase or lease from an Approved Supplier, or purchase or lease in accordance with Business System's standards and specifications, are referred to collectively as your "Required Purchases." We estimate that your Required Purchases, purchases from Approved Suppliers and purchases that must meet our specifications in total will be about 65% - 80% of your total purchases to establish the Franchise and about 65% - 80% of your purchases to continue the operation of your Franchise.
Pearce Bespoke may provide certain administrative, technical, design, and advisory services and data to a limited number of Approved Suppliers and other suppliers. We and/or our affiliates may negotiate supply contracts with our Approved Suppliers or other suppliers under which we are able to purchase products, equipment, supplies, services, and other items at a price that will benefit us and our franchisees. We and/or our affiliate(s) may receive payments or other compensation from Approved Suppliers or any other suppliers on account of these suppliers' dealings with us, you, or other franchises in the Business System, such as barters, cash, credit (regardless of collection), rebates, allowances, commissions, or any other forms of compensation. We may use any amountsthat we receive from Approved Suppliers and other suppliers for any purpose that we deem appropriate as a result of any and all transactions with franchisees.
ITEM 9 FRANCHISEE'S OBLIGATIONS
This table lists your principal obligations under the franchise and other agreements. It will help you find more detailed information about your obligations in these agreements and in other items of this Disclosure Document.
| Obligation | Section in Agreement | Disclosure Document Item |
|---|---|---|
| a. Site selection and acquisition/lease | Franchise Agreement (FA) Sections 7(A) and 8(O) Area Development Agreement (DA) Section 4 | Item 11 |
| b. Pre-opening purchases/leases | FA Sections 6(D) and 8(D), (O) and (P) | Items 5, 7, and 8 |
| c. |
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 19–20)
What This Means (2025 FDD)
According to Pearce Bespoke's 2025 Franchise Disclosure Document, Pearce Bespoke negotiates programs with manufacturers and suppliers. These programs are designed to allow franchisees to benefit from volume purchasing and prepaid freight programs. Franchisees may be charged directly by these third-party vendors for products or services. Pearce Bespoke will provide a list of approved suppliers to franchisees, based on their experience with vendors in the custom clothing and franchising industries. Pearce Bespoke retains the sole discretion to make the final determination on all approved suppliers; however, they will consider supplier approval requests from franchisees upon written request and will approve or disapprove a supplier within 30 days after receiving written notice. All suppliers must be approved by Pearce Bespoke before franchisees can use them and may be subject to training and reporting requirements.
Pearce Bespoke may also provide administrative, technical, design, and advisory services and data to approved suppliers. Pearce Bespoke and/or its affiliates may negotiate supply contracts with approved suppliers or other suppliers, allowing them to purchase products, equipment, supplies, services, and other items at a price that benefits both Pearce Bespoke and its franchisees. Pearce Bespoke and/or its affiliates may receive payments or other compensation from approved suppliers or any other suppliers due to their dealings with Pearce Bespoke, franchisees, or other franchises in the Business System. This compensation can take various forms, such as barters, cash, credit, rebates, allowances, commissions, or any other forms of compensation. Pearce Bespoke may use any amounts received from approved suppliers and other suppliers for any purpose they deem appropriate as a result of transactions with franchisees.
As a Pearce Bespoke franchisee, you are required to operate your franchise in accordance with the Business System, which includes standards and specifications for goods, services, supplies, items, equipment, inventory, and real estate fixtures; computer hardware, software, search engine optimization services, client survey services; marketing materials, advertising and sales collateral, use of signs, letterhead, business cards, and other promotional materials; credit card processing services; insurance providers; vehicle manufacturers (including make and model); and all clothing manufacturers and distributers used in operating your Franchise. To ensure a uniform image and quality of products and services throughout the Pearce Bespoke Business System, you must maintain the standards and specifications in accordance with the manuals. You must comply with Pearce Bespoke's then-current approved standards and specifications in the manuals in operating and equipping your Franchise. You must use equipment (including hardware and certain software programs for the POS System), signs, items, furnishings, products, supplies, and advertising and sales promotion materials which meet the standards and specifications of Pearce Bespoke's Business System. In addition, you may sell from your Franchise only those categories of products and services that Pearce Bespoke approves. Pearce Bespoke periodically publishes for franchisees a list approved product categories for use in a Franchise. Pearce Bespoke may periodically update and alter these categories of products and services you may sell from your Franchise. Pearce Bespoke's Manuals currently establish standards and specifications for men's and women's clothing and other items sold in your Franchise. Franchisee will have the right to advertise and sell its products at whatever prices Franchisee determines.
Pearce Bespoke is an approved supplier for certain items that franchisees are contractually obligated to purchase. These items include recruiting services, computer hardware, software, collaboration and communication services, telephone, information management system, credit/debit card processing, criminal history background checks, email marketing, online accounting, virtual phone systems, and client online surveys. In the last fiscal year ending on December 31, 2023, Pearce Bespoke had total revenues of $572,535, of which $234,000 (40.1%) was derived from required franchisee purchases or leases. The products or services that franchisees are required to purchase or lease from an approved supplier, or in accordance with the Business System's standards and specifications, are referred to as "Required Purchases." It is estimated that required purchases, purchases from approved suppliers, and purchases that must meet specifications will be about 65% - 80% of the total purchases to establish the franchise and about 65% - 80% of purchases to continue operating the franchise.