On what page of the Pearce Bespoke FDD can I find information about Pearce Bespoke's Audit Rights?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
12. SALES REPORTS, FINANCIAL STATEMENTS AND AUDIT RIGHTS
A. Sales Reports.
Franchisee will maintain an accurate written record of daily Gross Sales and will deliver to Franchisor a signed and verified statement of the weekly Gross Sales of Franchisee's business using such forms and methods as Franchisor may require in writing. The weekly statement of Gross Sales must be provided to Franchisor on or before Wednesday of each week for the preceding week. Franchisor reserves the right to modify or substitute the required forms and methods and impose additional recordkeeping procedures.
B. Financial Statements.
Franchisee will, at its expense, provide Franchisor with quarterly and annual financial statements and such other financial reports as Franchisor specifies using the forms and chart of accounts Franchisor requires. All financial information provided to Franchisor under this Section must be presented in the form Franchisor periodically requires in writing. Franchisee will deliver the quarterly financial information to Franchisor by the thirtieth (30th) day of the month following the end of the preceding quarter. The annual financial statement must be provided on or before March 1 of each year for the preceding calendar year. Franchisee acknowledges and agrees that the financial data of Franchisee's Pearce Bespoke Franchise (i) is owned by Franchisor, (ii) is Franchisor's Proprietary Information, (iii) may be published in franchise disclosure document(s) issued by Franchisor following the Effective Date hereof, and (iv) may be shared with other franchisees in the Business System.
C. Audit Rights.
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to the 2025 Pearce Bespoke Franchise Disclosure Document, information regarding Pearce Bespoke's audit rights can be found on page 99. Specifically, Item 22, which covers contracts, includes a section titled "SALES REPORTS, FINANCIAL STATEMENTS AND AUDIT RIGHTS." This section outlines the franchisee's responsibilities for maintaining accurate sales records, providing financial statements, and the franchisor's right to audit these records.
Pearce Bespoke requires franchisees to maintain accurate daily gross sales records and submit a signed weekly statement of gross sales using the forms and methods prescribed by the franchisor. These weekly statements are due by Wednesday of each week for the preceding week. Additionally, franchisees must provide quarterly and annual financial statements at their own expense, using the forms and chart of accounts required by Pearce Bespoke. Quarterly financial information is due within 30 days after the end of the preceding quarter, while the annual financial statement must be submitted by March 1 of each year for the preceding calendar year.
The FDD specifies that Pearce Bespoke owns the financial data from the franchisee's Pearce Bespoke Franchise, considers it proprietary information, and may publish it in franchise disclosure documents or share it with other franchisees within the Business System. The inclusion of audit rights in the franchise agreement allows Pearce Bespoke to verify the accuracy of the financial information provided by franchisees, ensuring compliance with the franchise agreement and maintaining the integrity of the Pearce Bespoke system.