For what purposes may Pearce Bespoke use the amounts it receives from Approved Suppliers and other suppliers?

According to Pearce Bespoke's 2025 Franchise Disclosure Document, Pearce Bespoke has broad discretion over the use of payments it receives from approved and other suppliers. Pearce Bespoke may receive payments or other compensation from these suppliers due to their dealings with Pearce Bespoke, its franchisees, or the broader Business System. These payments can take various forms, including barters, cash, credit, rebates, allowances, commissions, or other types of compensation.

Pearce Bespoke retains the right to use these funds for any purpose it deems appropriate as a result of transactions with franchisees. This means that Pearce Bespoke is not necessarily obligated to reinvest these funds directly back into the franchise system or use them in a way that immediately benefits franchisees.

This arrangement is relatively common in franchising, where franchisors often negotiate deals with suppliers and receive compensation for directing business to them. However, the breadth of Pearce Bespoke's discretion in using these funds is something a prospective franchisee should carefully consider. It would be prudent to inquire with Pearce Bespoke about how these funds have been used historically and what types of expenditures they typically cover. Understanding this can provide greater insight into the financial relationship between Pearce Bespoke, its suppliers, and its franchisees.