Is non-payment of amounts owed to Pearce Bespoke considered a curable default?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise | Summary | |
|---|---|---|---|
| Agreement | |||
| a. | Length of the franchise | Section 2(A) | 10 years |
| b. | Renewal or extension of the term | Section 2(B) | If you meet the renewal requirements set forth in the Franchise Agreement, you can renew the Franchise Agreement for up to two additional 5-year period(s). |
| c. | Requirements for you to renew or extend | Section 2(B) | Provide advance notice in writing, sign then current Franchise Agreement, pay renewal fee, remodel, meet all current Brand Standards, secure extension of lease and be in compliance with current Franchise Agreement during the term of the Agreement. You may be asked to sign a Franchise Agreement with materially different terms and conditions than your original Franchise Agreement. The entire provision is subject to state law. |
| d. | Termination by you | Section 16(A) | If you are complying with the Franchise Agreement, and Pearce Bespoke fails to cure a material default within 30 days after Pearce Bespoke’s receipt of written notice, subject to state law. |
| e. | Termination by Pearce Bespoke without cause | Not Applicable | Not Applicable |
| f. | Termination by Pearce Bespoke with cause | Sections 15(A) and (B) | Pearce Bespoke can terminate the Franchise Agreement only if you default. Subject to state law. |
| g. | “Cause” defined – curable defaults | Sections 15(A) and (B) | You have 30 days to cure a violation of any material provision of the Franchise Agreement, non-payment of amounts owed to Pearce Bespoke or any applicable local advertising cooperative, failure to abide by Pearce Bespoke’s standards and requirements in operating the Franchise, an assignment of assets to creditors and the expiration or termination of the Franchise’s lease. Subject to state law. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 31–34)
What This Means (2025 FDD)
According to Pearce Bespoke's 2025 Franchise Disclosure Document, non-payment of amounts owed to Pearce Bespoke is considered a curable default under the Franchise Agreement. Specifically, if a franchisee fails to pay amounts owed, they have a 30-day period to rectify the situation. This means the franchisee has a window of opportunity to cure the default and avoid termination of the agreement. This cure period also applies to violations of any material provision of the Franchise Agreement, failure to abide by Pearce Bespoke’s standards, assignment of assets to creditors, and the expiration or termination of the Franchise’s lease.
This 30-day cure period is a fairly standard practice in franchising, as it provides franchisees with an opportunity to correct their mistakes before Pearce Bespoke can terminate the agreement. It is important to note that this is subject to state law, which may provide additional regulations or protections for franchisees. The availability of a cure period can be a significant benefit for franchisees, as it offers a chance to resolve issues and maintain their franchise.
It is important for prospective Pearce Bespoke franchisees to understand the specific conditions and requirements for curing a default. Franchisees should carefully review Section 15(A) and (B) of the Franchise Agreement, as referenced in Item 17, to fully understand their rights and obligations in the event of a default. Franchisees should also be aware of any applicable state laws that may affect the cure period or termination process.