Does Pearce Bespoke have an obligation to ensure that any franchisee will benefit directly or indirectly in proportion to its contribution to the Brand Fund?

According to Pearce Bespoke's 2025 Franchise Disclosure Document, Pearce Bespoke has no obligation to ensure that franchisees benefit directly or indirectly in proportion to their contributions to the Brand Fund. The document states that Pearce Bespoke has the right to spend Brand Fund monies in any fiscal year, regardless of the aggregate contributions made that year. Pearce Bespoke can also borrow from lenders to cover fund deficits and accumulate funds over time.

Pearce Bespoke has the sole discretion to defer, waive, or compromise claims for contributions to the Brand Fund and can take legal action against franchisees who default on their obligations. Additionally, Pearce Bespoke can deny defaulting franchisees access to programs, materials, or other benefits funded by the Brand Fund. Any interest earned on Brand Fund contributions will be remitted back to the Brand Fund.

This means that as a Pearce Bespoke franchisee, your contributions to the Brand Fund may not directly correlate with the benefits you receive from it. Pearce Bespoke has broad discretion in how the Brand Fund is managed and spent, and there is no guarantee that your franchise will see a direct return on its investment in the fund. This is a fairly common practice in franchising, as brand-building activities often benefit the entire system rather than individual locations in direct proportion to their contribution.