What rights does a Pearce Bespoke franchisee have to the goodwill associated with the Marks and Business System?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor is the exclusive owner of all right, title, and interest in and to the Marks and Business System, and all past, present, or future goodwill of Franchisee's Pearce Bespoke Franchise and of the business conducted within the Franchised Territory that is associated with or attributable to the Marks. Franchisee's use of the Marks and the Business System will inure to the benefit of Franchisor. Franchisee disclaims all right, title, and interest in or to such goodwill and the Marks and the Business System and acknowledges, and agrees, that such goodwill and the Marks and the Business System are the exclusive property of Franchisor. Any and all improvements by Franchisee relating to the Marks and Business System will become the sole property of Franchisor who has the exclusive right to register and protect all such improvements in its name. Franchisee will execute any document required by Franchisor to transfer or assign any such improvements relating to the Marks and the Business System to Franchisor.
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to Pearce Bespoke's 2025 Franchise Disclosure Document, the franchisor owns all rights, titles, and interests in the Marks and Business System. This includes all past, present, and future goodwill associated with the franchisee's Pearce Bespoke franchise and the business conducted within the Franchised Territory that is attributable to the Marks. The franchisee's use of the Marks and the Business System benefits the franchisor. The franchisee specifically disclaims any right, title, or interest in such goodwill, Marks, and the Business System, acknowledging that they are the exclusive property of the franchisor.
Any improvements made by the Pearce Bespoke franchisee related to the Marks and Business System become the sole property of the franchisor, who has the exclusive right to register and protect these improvements. The franchisee is required to execute any documents necessary to transfer or assign these improvements to the franchisor.
In practical terms, this means that while a Pearce Bespoke franchisee operates their business, the goodwill generated through their efforts legally accrues to the benefit of the franchisor. Upon termination of the franchise agreement, the franchisee has no rights to the established goodwill, which remains the property of Pearce Bespoke Franchising, LLC.