Does Pearce Bespoke have an obligation to ensure that Brand Fund expenditures are proportionate to contributions from franchisees in any geographic area?

According to the 2025 Pearce Bespoke Franchise Disclosure Document, Pearce Bespoke is not obligated to ensure that Brand Fund expenditures are proportionate or equivalent to contributions made by franchisees in any specific geographic area. The FDD states that franchisees are not guaranteed to benefit directly, indirectly, or in proportion to their contribution to the Brand Fund. This means that Pearce Bespoke has the discretion to allocate the Brand Fund as it sees fit, without necessarily considering the specific contributions from franchisees in a particular region.

This policy has several implications for prospective Pearce Bespoke franchisees. While franchisees are required to contribute to the Brand Fund, there is no guarantee that the funds will be used to directly benefit their specific location or region. The Brand Fund can be used for various advertising and marketing activities at the local, regional, or national level, and Pearce Bespoke has the sole discretion to decide how the funds are spent.

Franchisees should be aware that Pearce Bespoke can spend more or less than the aggregate contributions to the Brand Fund in any given year, borrow funds to cover deficits, and accumulate funds over time. Additionally, Pearce Bespoke can defer, waive, or compromise claims for contributions to the fund and take legal action against franchisees who default on their obligations. The FDD also clarifies that the Brand Fund is not a trust and does not create a fiduciary relationship.

Overall, the Brand Fund terms provide Pearce Bespoke with significant flexibility in managing and allocating advertising and marketing resources. Prospective franchisees should carefully consider these terms and understand that their contributions to the Brand Fund may not directly correlate with the marketing benefits they receive in their specific territory.