What revenue is subject to the Pearce Bespoke encroachment fee?

Based on the 2025 Pearce Bespoke Franchise Disclosure Document, there is no mention of an encroachment fee. However, the document does define "Gross Sales" which is relevant to the local marketing expenses. According to the FDD, Gross Sales means the total revenues a franchisee receives from the sale of goods and services, whether by cash, check, credit card, or trade, in connection with the Franchise, less customer refunds and returns and sales or similar taxes. Gross Sales includes any sales permitted through the internet.

Pearce Bespoke franchisees are required to spend a minimum of 5% of their Gross Sales on local marketing expenses each calendar year. This minimum amount must be spent during each calendar year. Pearce Bespoke retains the right to increase this requirement to a maximum of 6% with 30 days' written notice.

Prospective franchisees should inquire with Pearce Bespoke about any potential fees related to encroachment, how the company defines its protected territory, and what recourse a franchisee has if the franchisor or another franchisee impacts their sales.