Do Pearce Bespoke officers own any interest in any approved supplier?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
subject to our training and reporting requirements.
Pearce Bespoke is an Approved Supplier for certain items for which you are contractually obligated to purchase in the operation of your Franchise. Pearce Bespoke, its officers and/or persons affiliated with us, may now or in the future own an interest in Pearce Bespoke and be Approved Suppliers of certain items of the Business System. Pearce Bespoke officers do not own any interest in any Approved Supplier. Approved Supplier items include, but shall not limited to, recruiting services, computer hardware, software, collaboration and communication services, telephone, information management system, credit/debit card processing, criminal history background checks, email marketing, online accounting, virtual phone systems and client online surveys. You must license the POS/CRM software and purchase the computer hardware components for the POS System (the "POS System") either from us or a third-party vendor which may be modified from time to time in the Manuals. In the last fiscal year ending on December 31, 2023, we had total revenues of $572,535 of which $234,000, or 40.1%, was derived in
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 19–20)
What This Means (2025 FDD)
According to Pearce Bespoke's 2025 Franchise Disclosure Document, Pearce Bespoke is identified as an approved supplier for certain items that franchisees are contractually obligated to purchase. The document clarifies that while Pearce Bespoke, its officers, and affiliated individuals may have ownership interests in Pearce Bespoke itself, Pearce Bespoke officers do not have any ownership interest in any other approved supplier.
This distinction is important for prospective franchisees because it provides transparency regarding potential conflicts of interest. While franchisees are required to purchase certain items from approved suppliers, the assurance that Pearce Bespoke's officers do not have a financial stake in those suppliers could foster trust and confidence in the fairness of the supply chain. This arrangement ensures that the selection of approved suppliers is based on merit and quality rather than personal financial gain of the officers.
The FDD also mentions that in the last fiscal year ending on December 31, 2023, Pearce Bespoke had total revenues of $572,535, with $234,000 (or 40.1%) derived from required franchisee purchases or leases. This indicates a significant portion of Pearce Bespoke's revenue comes from these mandatory purchases, highlighting the importance of the approved supplier network to the franchisor's financial health. Franchisees should carefully evaluate the costs and benefits associated with these required purchases as part of their due diligence.
It is also important to note that Pearce Bespoke retains the sole and absolute discretion to make the final determination on all Approved Suppliers. However, they will consider supplier approval requests from franchisees upon written request. They will approve or disapprove a supplier within 30 days after they receive written notice from the franchisee. All suppliers franchisees use must be approved by Pearce Bespoke before they can use them and may be subject to their training and reporting requirements.