Does Pearce Bespoke have a right of first refusal regarding the transfer of a Pearce Bespoke 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 retain a right of first refusal regarding the transfer of a franchise. Specifically, Pearce Bespoke has the first right of refusal on all transfers related to the Development Agreement. This right can be exercised within 30 days of Pearce Bespoke receiving an executed copy of the transfer contract.
This right of first refusal is a common provision in franchise agreements. It allows Pearce Bespoke to maintain control over who becomes a franchisee within their system. By having the first option to acquire the franchisee's business, Pearce Bespoke can prevent the transfer of the franchise to a potential competitor or someone who does not meet their standards.
For a prospective Pearce Bespoke franchisee, this means that if they decide to sell their franchise, they must first offer the business to Pearce Bespoke. Pearce Bespoke then has 30 days to decide whether to purchase the franchise under the same terms as the offer from the third party. If Pearce Bespoke declines, the franchisee is free to proceed with the sale to the third party. This clause is applicable to the Development Agreement.