What pre-opening obligations must Pearce Bespoke fulfill before collecting the initial franchise fee?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
adcast media placement and online advertising for its pre-opening and first year marketing activities.
7. FRANCHISOR'S OBLIGATIONS
A. Pre-Opening:
Upon execution of the Franchise Agreement and for so long as Franchisee holds a Pearce Bespoke Franchise, subject to the terms of this Agreement, but prior to Franchisee's commencement of operations of the Pearce Bespoke Franchise, Franchisor shall:
- a. Train Franchisee and its manager(s) as described in this Agreement;
- b. Make electronically accessible all the specifications, approved Suppliers lists, approved supplies lists, extranet access and Manuals.
B. Opening Assistance.
Franchisor will assist in scheduling the opening of the Pearce Bespoke Franchise. Franchisee will not open or commence business operations until Franchisee has received written approval from Franchisor. Franchisor's approval may be withheld if Franchisee fails to meet minimum inventory requirements, training and/or marketing requirements or brand standards established by Franchisor.
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to Pearce Bespoke's 2025 Franchise Disclosure Document, prior to collecting the initial franchise fee, Pearce Bespoke must fulfill certain pre-opening obligations. These obligations are subject to the terms of the Franchise Agreement and must be completed before the franchisee commences operations.
Specifically, Pearce Bespoke is obligated to train the franchisee and their managers as described in the Franchise Agreement. This training is a crucial step in ensuring that the franchisee understands the Pearce Bespoke business model and operational standards. Additionally, Pearce Bespoke must make electronically accessible all specifications, approved supplier lists, approved supplies lists, extranet access, and manuals to the franchisee. Providing these resources ensures the franchisee has the necessary information to set up and run their business according to Pearce Bespoke standards.
Pearce Bespoke will also assist in scheduling the opening of the franchise. However, the franchisee cannot open or begin business operations until they receive written approval from Pearce Bespoke. This approval may be withheld if the franchisee does not meet minimum inventory, training, marketing requirements, or brand standards established by Pearce Bespoke. Pearce Bespoke will provide pre-opening assistance at no charge and will also assist around the time of the grand opening. These measures are in place to ensure that each Pearce Bespoke franchise is set up for success and maintains the brand's integrity from the outset.