When does Pearce Bespoke recognize revenue from non-recurring services?

According to Pearce Bespoke's 2025 Franchise Disclosure Document, the company recognizes revenue from non-recurring services when the service is charged to the franchisee. These non-recurring services are additional fees that Pearce Bespoke reserves the right to charge franchisees for services beyond the standard franchise agreement.

For a prospective franchisee, this means that if Pearce Bespoke provides a service that is not part of the initial franchise package or ongoing support, they will recognize the revenue for that service at the time they bill the franchisee for it. This accounting practice aligns with typical revenue recognition principles, where revenue is recognized when it is earned and realized or realizable.

It is important for potential franchisees to understand what constitutes a 'non-recurring service' and under what circumstances these charges may be applied. Reviewing the franchise agreement carefully and seeking clarification from Pearce Bespoke on the types of services that fall into this category can help avoid unexpected expenses. Franchisees should also inquire about the typical range of costs associated with these non-recurring services to better prepare their financial forecasts.