What is the requirement regarding the number of open and operating Pearce Bespoke Businesses in the Development Area to maintain area protection?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
4. Development Area
- 4.1 Development Area.Except as provided in this Section 4.1, while this Agreement is in effect, provided that you open and operate the Businesses in accordance with the Development Schedule and the minimum number of Businesses that you have open and operating in the Development Area at any given time is not less than the minimum required pursuant to the Development Schedule, we will not operate, or license any person other than you to operate, a Mobile Franchise under the Marks (as defined in your Initial Franchise Agreement) and the System (as defined in your Initial Franchise Agreement) within the Development Area.
Each Mobile Franchise you open will be granted a protected territory as set forth in the individual Franchise Agreement for that Business.
This Agreement does not give you the right open or operate in any portions of the Development Area until you have signed a new Franchise Agreement which includes that portion of the Development Area as your protected territory.
Source: Item 23 — RECEIPTS (FDD pages 39–172)
What This Means (2025 FDD)
According to the 2025 Pearce Bespoke FDD, a developer must open and operate Businesses in accordance with the deadlines set forth in the Development Schedule. To maintain area protection, the minimum number of Pearce Bespoke Businesses that the developer has open and operating in the Development Area at any given time must not be less than the minimum required pursuant to the Development Schedule.
This means that Pearce Bespoke grants a protected area to the developer, but the developer must meet the milestones outlined in the Development Schedule to maintain that protection. If the developer fails to open the required number of locations by the specified deadlines, Pearce Bespoke may operate or license others to operate a Mobile Franchise within the Development Area.
Each Mobile Franchise opened by the developer will be granted a protected territory as defined in the individual Franchise Agreement for that Business. The Area Development Agreement does not grant the developer the right to open or operate in any portions of the Development Area until a new Franchise Agreement has been signed that includes that portion of the Development Area as the protected territory.