How will Pearce Bespoke pay the Franchisee the Net Sales generated from the Franchisee's Pearce Bespoke Business?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
On a weekly basis, Franchisor will calculate the Gross Sales, Net Sales, and Credit Card Sales (as defined below) generated from the operation of Franchisees Pearce Bespoke Business. Certain fees are payable based upon Gross Sales or Credit Card Sales. On a weekly basis, Franchisor will provide a report to Franchisee, on the Gross Sales, Net Sales, and Credit Card Sales from Franchisee's Business. Franchisor will pay Franchisee, by EFT, ACH, direct deposit, or a similar means, the Net Sales generated from Franchisee's Business during the previous calendar week minus: (i) all fees, including Royalty Fee, Brand Fund Fee, POS System Subscription Fee, and Technology Fee as detailed in and permitted by this Agreement; (ii) amounts owe by Franchisee to Franchisor or its affiliates for purchases of supplies permitted by and in accordance with the terms of this Agreement; and (iii) any other monetary obligation that Franchisee has to Franchisor or its affiliates, or any approved suppliers that Franchisor has been made aware of prior to the date that Franchisor would have to make a payment to on Franchisee's behalf, which is permitted by and in accordance with the terms of this Agreement (the "Franchisee Share").
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to Pearce Bespoke's 2025 Franchise Disclosure Document, the franchisor will calculate Gross Sales, Net Sales, and Credit Card Sales on a weekly basis. The franchisor will then provide a report to the franchisee detailing these sales figures for the franchisee's business.
Pearce Bespoke will pay the franchisee the Net Sales generated from the franchisee's business during the previous calendar week. This payment will be made via EFT, ACH, direct deposit, or a similar method. However, the Net Sales payment will be reduced by several deductions.
The deductions include: (i) all fees, such as the Royalty Fee, Brand Fund Fee, POS System Subscription Fee, and Technology Fee, as outlined in the Franchise Agreement; (ii) any amounts the franchisee owes to Pearce Bespoke or its affiliates for approved supply purchases; and (iii) any other monetary obligations the franchisee has to Pearce Bespoke, its affiliates, or approved suppliers that Pearce Bespoke is aware of before making the payment on the franchisee's behalf. The remaining amount after these deductions is referred to as the "Franchisee Share."