What is the Non-Sufficient Funds Fee for Pearce Bespoke franchisees in Minnesota?

According to Pearce Bespoke's 2025 Franchise Disclosure Document, the Non-Sufficient Funds Fee for franchisees in Minnesota is $30.00 per occurrence. This fee is mandated by Minn. Stat. § 604.113. This means that if a Pearce Bespoke franchisee in Minnesota makes a payment to the franchisor that is returned due to insufficient funds, the franchisee will be charged $30.00 for each instance.

This fee is intended to cover the administrative costs incurred by Pearce Bespoke as a result of processing a payment that was not honored by the bank. It is important for prospective franchisees in Minnesota to be aware of this fee and to ensure they have sufficient funds available when making payments to avoid incurring this charge. Franchisees should maintain careful records of their payments and bank balances to prevent non-sufficient fund situations.

It is typical for franchisors to charge NSF fees to cover administrative costs when payments are returned. The Pearce Bespoke FDD clearly states the amount of this fee in compliance with Minnesota state law, ensuring transparency for potential franchisees. This specific disclosure is part of an addendum required by the state of Minnesota to ensure the franchise agreement aligns with Minnesota's Franchise Act.