How are royalty revenues billed by Pearce Bespoke?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
enue is recognized upon the execution of the franchise agreement. This fee is assessed for each additional clothier added to a franchised location.
Franchise Royalties
Franchise royalties are calculated based upon either 10% of franchisee gross revenue or a minimum of $100 per week (as defined in the franchise agreement). In year 2 of operation the minimum fee will increase to $150 per we
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 39)
What This Means (2025 FDD)
According to Pearce Bespoke's 2025 Franchise Disclosure Document, franchise royalties are billed weekly. These royalties are calculated as either 10% of the franchisee's gross revenue or a minimum weekly fee, whichever is greater.
The minimum weekly royalty fee for Pearce Bespoke franchisees increases over time. In the first year of operation, the minimum is $100 per week. This increases to $150 per week in the second year, and then to $200 per week for the third year and beyond.
Pearce Bespoke recognizes these royalty revenues weekly, based on the previous week's sales. This means franchisees need to maintain accurate sales records and be prepared to remit royalty payments on a consistent, weekly schedule. This billing structure is fairly typical in the franchise industry, providing a steady income stream for the franchisor while aligning royalty costs with the franchisee's revenue.