What obligations do the Owners have under the Pearce Bespoke franchise agreement and area development agreement?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
rship and will be obligated to personally manage and operate the Franchisee's business.
We may require every general partner and limited partner, if you are a partnership or limited partnership; or every member, if you are a limited liability company, or every stockholder or other holder of equity interest, if you are a corporation (collectively, "Owners"), to personally guarantee your obligations under the franchise agreement or area development agreement and also agree to be personally bound by, and jointly and severally liable for the breach of, any provision of the franchise agreement or area development agreement. The Owners agree to discharge all of their obligations under the franchise agreement and area development agreement. Furthermore, all Owners are bound by all provisions of the franchise and area development agreements, including but not limited to, maintaining the confidentiality of proprietary information and trade secrets as described in Item 14 and the noncompete covenants described in Item 17. Lastly, all of your owners, management personnel, and employees who are provided access to the Manual or other confidential information must sign a Confidentiality Agreement.
ITEM 16 RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL
You must offer and sell only those goods and services that Pearce Bespoke has approved. You also must offer all goods and services that Pearce Bespoke designates as required for all franchisees.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISED BUSINESS (FDD page 30)
What This Means (2025 FDD)
According to the 2025 Pearce Bespoke Franchise Disclosure Document, if the franchisee is a corporate entity or partnership, at least one individual must retain 50% of the equity and voting interest and personally manage the business.
Pearce Bespoke may require all general partners, limited partners, members of a limited liability company, or stockholders to personally guarantee the franchisee's obligations under the franchise agreement or area development agreement. These owners must also agree to be personally bound by and liable for any breach of these agreements.
Furthermore, all owners are obligated to fulfill all requirements outlined in the franchise and area development agreements. This includes maintaining the confidentiality of proprietary information and trade secrets as detailed in Item 14, and adhering to the non-compete covenants described in Item 17. All owners, management personnel, and employees who have access to the manual or other confidential information must sign a Confidentiality Agreement.