When does Pearce Bespoke recognize revenue from ancillary franchise fees?

According to Pearce Bespoke's 2025 Franchise Disclosure Document, the company recognizes revenue from ancillary franchise fees when control of the related good or service has been transferred to the franchisee. These ancillary fees cover items such as franchise opening inventory and equipment, technology, software, additional training, and other revenues.

Pearce Bespoke bills these ancillary fees upon delivery, weekly, or monthly, depending on when the service is delivered or made available to the franchisee. This means that the timing of revenue recognition for these fees is directly tied to the transfer of control and the billing cycle associated with each specific good or service.

For a prospective franchisee, this implies that the costs associated with these ancillary items will be recognized as revenue by Pearce Bespoke and billed to the franchisee as they receive the goods or as the services are rendered. This could impact the franchisee's initial investment and ongoing operational costs, as these fees are recognized and billed at different stages of the franchise agreement.