Does Pearce Bespoke have a right of first refusal regarding transfer of the franchise?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Development Agreement | Summary |
|---|---|---|
| n. Our right of first refusal to acquire franchisee's business | Section 7 | We have the first right of refusal on all transfer, exercisable withing 30 days of receiving an executed copy of the contract of transfer. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 31–34)
What This Means (2025 FDD)
According to Pearce Bespoke's 2025 Franchise Disclosure Document, Pearce Bespoke does have a right of first refusal regarding the transfer of a Development Agreement. Specifically, Pearce Bespoke has the first right of refusal on all transfers, which they can exercise within 30 days of receiving an executed copy of the contract of transfer.
This right of first refusal is detailed within Section 7 of the Development Agreement. The FDD also states that Pearce Bespoke has the right to approve or not approve all transfers in its sole discretion, and also has sole discretion in setting conditions for approval of a transfer.
For a prospective franchisee, this means that if they decide to sell their Pearce Bespoke franchise, Pearce Bespoke has the option to purchase the franchise themselves before the franchisee can sell it to a third party. This could potentially delay or complicate the sale of the franchise, as the franchisee must first offer it to Pearce Bespoke and wait for their decision. It also gives Pearce Bespoke significant control over who can become a franchisee within their system.