Is Pearce Bespoke required to share any compensation received from Approved Suppliers with its franchisees?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
Pearce Bespoke may provide certain administrative, technical, design, and advisory services and data to a limited number of Approved Suppliers and other suppliers. We and/or our affiliates may negotiate supply contracts with our Approved Suppliers or other suppliers under which we are able to purchase products, equipment, supplies, services, and other items at a price that will benefit us and our franchisees. We and/or our affiliate(s) may receive payments or other compensation from Approved Suppliers or any other suppliers on account of these suppliers' dealings with us, you, or other franchises in the Business System, such as barters, cash, credit (regardless of collection), rebates, allowances, commissions, or any other forms of compensation. We may use any amountsthat we receive from Approved Suppliers and other suppliers for any purpose that we deem appropriate as a result of any and all transactions with franchisees.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 19–20)
What This Means (2025 FDD)
According to Pearce Bespoke's 2025 Franchise Disclosure Document, Pearce Bespoke is not required to share compensation received from Approved Suppliers with its franchisees. The FDD states that Pearce Bespoke and its affiliates may receive payments or other compensation from Approved Suppliers or any other suppliers due to their dealings with Pearce Bespoke, its franchisees, or other franchises within the Business System. This compensation can take various forms, including barters, cash, credit, rebates, allowances, commissions, or any other form of compensation.
Pearce Bespoke retains the right to use any amounts received from Approved Suppliers and other suppliers for any purpose they deem appropriate as a result of transactions with franchisees. This means that Pearce Bespoke is not obligated to distribute any portion of these funds to its franchisees.
This arrangement is fairly common in franchising, where franchisors often negotiate deals with suppliers and receive compensation for directing franchisee purchases to those suppliers. While franchisees may benefit from negotiated volume purchasing programs, they do not have a direct claim to any compensation Pearce Bespoke receives from these suppliers. Prospective franchisees should consider this when evaluating the overall cost and potential profitability of a Pearce Bespoke franchise.