Can Pearce Bespoke require a franchisee to resell items not uniquely identified with the franchisor?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee will sell only those categories of products and services Franchisor approves in writing and will offer for sale all categories of products and services required by Franchisor from time to time. Franchisee will conform to all quality and customer service standards Franchisor requires in writing. Franchisee will purchase only such types, models or brands of items, furniture, equipment, signs, and supplies that Franchisor approves for Pearce Bespoke as meeting its specifications and standards, including specifications and standards for quality, design, warranties, appearance, function, and performance. Franchisee acknowledges and agrees that such items shall be purchased only from sources, manufacturers, or suppliers approved in writing by Franchisor (which sources or suppliers may include Franchisor or affiliates of Franchisor). FRANCHISOR DISCLAIMS ALL WARRANTIES, WHETHER EXPRESS OR IMPLIED, INCLUDING ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE IN CONNECTION WITH FRANCHISOR'S (AND/OR AN AFFILIATE'S) SALE OF ANY GOODS, EQUIPMENT, FURNITURE, SIGNS, OR SUPPLIES TO FRANCHISEE. Franchisee agrees to execute any and all documents Franchisor reasonably requests, including letters of credit, security agreements, and
financing statements, to provide collateral for amounts due to Franchisor for purchases of inventory and other items custom in Franchisee's business.
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to Pearce Bespoke's 2025 Franchise Disclosure Document, franchisees are required to sell only those categories of products and services that Pearce Bespoke approves in writing. Moreover, franchisees must offer for sale all categories of products and services that Pearce Bespoke requires from time to time. This indicates that Pearce Bespoke has the authority to mandate the sale of specific products and services.
Pearce Bespoke franchisees must also purchase only the types, models, or brands of items, furniture, equipment, signs, and supplies that Pearce Bespoke approves. These items must meet Pearce Bespoke's specifications and standards, including those for quality, design, warranties, appearance, function, and performance. These items must be purchased from sources, manufacturers, or suppliers approved in writing by Pearce Bespoke, which may include Pearce Bespoke or its affiliates.
These stipulations grant Pearce Bespoke significant control over the products and services offered and the items used in the operation of the franchise. While the FDD does not explicitly state that Pearce Bespoke can require the resale of items not uniquely identified with the franchisor, the broad control Pearce Bespoke exerts over product selection and branding suggests this is possible. A prospective franchisee should seek clarification from Pearce Bespoke regarding the extent to which they might be required to sell items not bearing the Pearce Bespoke brand.