factual

What is Releasor prohibited from doing regarding Pearce Bespoke in the Nondisparagement section?

Pearce_Bespoke Franchise · 2025 FDD

Answer from 2025 FDD Document

  • 3. Nondisparagement. Releasor expressly covenants and agrees not to make any false representation of facts, or to defame, disparage, discredit, or deprecate any of the Released Parties or otherwise communicate with any person or entity in a manner intending to damage any of the Released Parties, their business, or their reputation.

Source: Item 23 — RECEIPTS (FDD pages 39–172)

What This Means (2025 FDD)

According to the 2025 FDD, the General Release of Claims form states that the Releasor (which includes the franchisee and anyone holding an ownership interest in the franchisee) is prohibited from making any false representations of facts. The Releasor is also prohibited from defaming, disparaging, discrediting, or deprecating any of the released parties. Furthermore, the Releasor is not allowed to communicate with any person or entity in a manner intending to damage any of the Released Parties, their business, or their reputation. The Released Parties include Pearce Bespoke Franchising, LLC.

This clause ensures that franchisees (and their owners) who are released from obligations or liabilities to Pearce Bespoke do not then turn around and make negative or damaging statements about the company. This is a fairly standard clause in settlement or release agreements across many franchise systems.

For a prospective Pearce Bespoke franchisee, this means that if they ever seek to transfer, terminate, or amend their franchise agreement and are required to sign a general release, they will be legally bound to refrain from making disparaging remarks about the Pearce Bespoke brand. Violating this clause could lead to legal repercussions.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.