Does Pearce Bespoke have the right to require franchisees to enter into a separate maintenance agreement for computer hardware and/or Software?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
You must purchase and use all computer software programs ("Software"), which we have developed or
2025 FDD 23
may develop and/or designate for use for the Business System through Approved Suppliers and you must also purchase such computer hardware as may be necessary for the efficient operation of the Software. We have the right to require you to update or upgrade computer hardware components and/or Software as we deem necessary from time to time. In addition, we have the right to require you to enter into a separate maintenance agreement for such computer hardware and/or Software. Although you must buy, use, and maintain computer hardware and Software meeting our standards and specifications, you will have the sole and complete responsibility for: (i) the acquisition, operation, maintenance, and upgrading of the computer hardware and Software; and (ii) all consequences that may arise if the computer hardware and Software is not properly operated, maintained, or upgraded.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 21–27)
What This Means (2025 FDD)
According to Pearce Bespoke's 2025 Franchise Disclosure Document, Pearce Bespoke has the right to require franchisees to enter into a separate maintenance agreement for computer hardware and/or software. While franchisees are responsible for the acquisition, operation, maintenance, and upgrading of computer hardware and software meeting Pearce Bespoke's standards, Pearce Bespoke may mandate updates or upgrades to these components as deemed necessary.
Item 7 estimates the annual costs of required maintenance, updating, or support contracts to be approximately $0 - $500 per year. However, Pearce Bespoke is not obligated to provide any ongoing maintenance, repairs, upgrades, or updates. Pearce Bespoke reserves the right to charge a reasonable fee for any ongoing maintenance and repairs, upgrades, and support services, including the costs for the POS System, Software, and hardware components.
Technology is constantly changing, and Pearce Bespoke may require franchisees to update their POS System, Software, or computer hardware every five years or as needed, depending on changes in technology, the Business System, and Pearce Bespoke's current standards and specifications as defined in the Manuals. Pearce Bespoke cannot provide an estimate of the annual costs of any optional or required maintenance and support contracts since Pearce Bespoke has not required its franchisees to use their POS system or Software, that may be in development or that they may develop in the future, as of their last fiscal year end. This means that while the initial investment might be predictable, ongoing maintenance costs could vary and are subject to change based on technological advancements and Pearce Bespoke's evolving requirements.