What is the prohibited action regarding alternative channels of distribution for a Pearce Bespoke franchisee?

According to Pearce Bespoke's 2025 Franchise Disclosure Document, a franchisee is generally prohibited from using alternative channels of distribution unless specifically authorized by Pearce Bespoke. These channels include methods like the internet, catalog sales, telemarketing, or other direct marketing methods, whether for sales inside or outside of the franchisee's territory.

This restriction means that a Pearce Bespoke franchisee must obtain explicit approval from the company before engaging in any sales activities through channels other than the standard, approved methods. This is a fairly common practice in franchising, as franchisors often want to maintain control over brand consistency and customer experience across all sales channels.

The FDD specifies that Pearce Bespoke reserves the right to distribute products through alternative channels of distribution, including the internet, inside or outside the Franchised Territory. This highlights a potential risk for franchisees, as they may face competition from the franchisor's own online sales or other distribution methods within their territory, without receiving any compensation for those sales. Franchisees need to be aware that Pearce Bespoke retains significant control over distribution channels and can leverage them independently, which could impact a franchisee's sales and profitability.