Does Pearce Bespoke offer exclusive territories to franchisees?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
l sell goods or services that are the same or similar to those that you will sell.
You will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control. If we or our affiliates solicit or accept orders within your territory, we are not required to provide any compensation.
You may not advertise, market, solicit, sell, or service customers outside your Franchised Territory ("Non-Exclusive Customers"), unless you are solicited or have a prior verifiable relationship with the Non-Exclusive Customer. Even if you sell to a Non-Exclusive Customer, you must pay us or the incumbent franchise owner an encroachment fee of twenty percent (20%) of the Gross Sales attributed to the Non-Exclusive Customers sales outside of your Franchised Territory ("Encroachment Fee").
You may not use alternative channels of distribution, including the internet, catalog sales, telemarketing, or other direct marketing methods to make sales inside or outside your Franchised Territory unless specifically authorized by Pearce Bespoke.
Pearce Bespoke You need to achieve specified Gross Sales to retain the Franchised Territory ("Minimum Performance Standard(s)"). Following the execution of the Franchise Agreement, the Minimum Performance Standard
2025 FDD 27
| Period Following Original | Minimum Gross Sales | |
|---|---|---|
| Opening Date | ||
| Year 1 | $50,000 | |
| Year 2 | $75,000 | |
| Year 3 | $100,000 | |
| Year 4+ | 10% increase over previous year minimum | You are required to make certain minimum weekly royalty paymentsto retain the Franchised Territory under the Franchise Agreement ("Minimum Royalty Payment(s)"). Following the execution of the Franchise Agreement, the Minimum Royalty Payment schedule is as follows: |
| Period Following Original | Minimum Royalty Payment | |
|---|---|---|
| Opening Date | ||
| Year 1 | $100 per week | |
| Year 2 | $150 per week | |
| Year 3 | $200 per week | |
| Year 4+ | 10% increase over previous year minimum | Pearce Bespoke reserves the right to sell at all conventions, conferences, and other trade centers both domestically in the United States and internationally to market and sell its services solely or jointly with any of its franchisees. We reserve the rights to offer (i) other services and products not offered under the Marks, (ii) other quality custom clothing and accessories concepts or products under the Marks or other trademarks, and (iii) products or services through other channels of distribution in the Franchised Territory including, but not limited to, co-branding with other quality custom clothing and accessories businesses, and products offered through retail stores, the Internet or direct marketing. |
Source: Item 12 — TERRITORY (FDD pages 27–29)
What This Means (2025 FDD)
According to Pearce Bespoke's 2025 Franchise Disclosure Document, franchisees will not receive an exclusive territory. The FDD states that franchisees may face competition from other franchisees, outlets owned by Pearce Bespoke, other distribution channels, or competitive brands controlled by Pearce Bespoke. If Pearce Bespoke or its affiliates solicit or accept orders within a franchisee's territory, they are not required to provide any compensation to the franchisee.
Although Pearce Bespoke does not grant exclusive territories, franchisees are assigned a "Franchised Territory" determined by computer modeling that considers population density and average household income. For franchises in urban areas (metropolitan areas with a population exceeding 200,000), the territory generally includes a population between 50,000 and 200,000 people, or no more than 50,000 people, depending on the franchise fee paid. Franchisees must operate only at their approved location and need written consent to relocate.
Pearce Bespoke retains the right to sell at conventions, conferences, and trade centers, both domestically and internationally, either independently or jointly with franchisees. They also reserve the right to offer other services and products, including those under different trademarks, through various distribution channels, even within a franchisee's territory. Franchisees receive no compensation for Pearce Bespoke's sales through these alternative channels.
To maintain their Franchised Territory, Pearce Bespoke franchisees need to achieve specific Gross Sales, referred to as "Minimum Performance Standard(s)." For example, Year 1 requires $50,000, Year 2 requires $75,000, Year 3 requires $100,000, and Year 4+ requires a 10% increase over the previous year's minimum. Franchisees are also required to make certain minimum weekly royalty payments to retain the Franchised Territory. For example, Year 1 requires $100 per week, Year 2 requires $150 per week, Year 3 requires $200 per week, and Year 4+ requires a 10% increase over the previous year's minimum.