What was the net income (loss) for Pearce Bespoke?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
| Revenues: | |||
|---|---|---|---|
| Initial franchise fees | $ 1 64,210 | $ - | |
| Equipment fees | 1 68,000 | - | |
| Franchise revenues | 153,238 | 3 | 6,593 |
| Royalties | 4 7,008 | 6 | ,031 |
| Rebates | 4 0,079 | 4 | 26 |
| Total Revenues | 5 72,535 | 4 | 3,050 |
| Operating Expenses | 1 ,052,399 | 8 | 9,414 |
| Net Income (Loss) | ( 479,864) | ( 46,365) | |
| Members' Equity, Beginning | 7 ,880 | - | |
| Contributions | - | 54,245 | |
| Members' Equity (Deficiency), Ending | $ ( 471,984) | $ 7,880 |
Source: Item 23 — RECEIPTS (FDD pages 39–172)
What This Means (2025 FDD)
According to Pearce Bespoke's 2025 Franchise Disclosure Document, the company experienced a net loss. The provided financial data shows a net loss of ($479,864). This loss is part of a larger financial picture that includes total revenues of $572,535 and operating expenses of $1,052,399.
Prospective franchisees should carefully consider these figures. A significant net loss could indicate financial instability or operational challenges within the Pearce Bespoke franchise system. It's essential to investigate the reasons behind the loss, such as high startup costs, marketing expenses, or lower-than-expected sales. Understanding these factors is crucial for assessing the potential profitability and sustainability of a Pearce Bespoke franchise.
Furthermore, the document indicates a beginning members' equity of $7,880, with contributions made, resulting in an ending members' equity deficiency of ($471,984). This suggests that the company's financial health may be a concern, and potential franchisees should conduct thorough due diligence, including consulting with financial advisors, to evaluate the risks and opportunities associated with investing in a Pearce Bespoke franchise. Reviewing multiple years of financial statements, if available, would provide a more comprehensive understanding of the company's financial trends.