Which sections of the Pearce Bespoke Franchise Agreement cover post-termination obligations?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise | Summary | |
|---|---|---|---|
| r. | Non-competition covenants after the franchise is terminated or expires | Sections 18(B) and (C) | No direct or indirect involvement in any resale mobile business involving the purchase and/or sale of custom clothing and accessories for 2 years within 10 miles of the Franchise or any other Pearce Bespoke Franchise. If the franchisee is in breach of this provision, the noncompetition period will be extended for a period of time equal to the time the franchisee operated a competing business, subject to state law. |
Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 20–21)
What This Means (2025 FDD)
According to the 2025 Pearce Bespoke Franchise Disclosure Document, Item 17 summarizes provisions of the franchise agreement, including those related to post-termination. Specifically, Section 18(B) and (C) of the Franchise Agreement address non-competition covenants after the franchise is terminated or expires. These sections state that the franchisee cannot be directly or indirectly involved in any resale mobile business involving the purchase and/or sale of custom clothing and accessories for 2 years within 10 miles of the Franchise or any other Pearce Bespoke Franchise. If the franchisee breaches this provision, the noncompetition period will be extended for a period of time equal to the time the franchisee operated a competing business, subject to state law.
Item 22 further details the franchisee's obligations upon termination. If the Franchise Agreement is terminated for any reason, the franchisee must, within five days of termination, pay all amounts due to Pearce Bespoke or its suppliers. The franchisee must also return or destroy all equipment, manuals, advertising materials, and other printed materials related to the franchise operation. Additionally, the franchisee must assign or disconnect the telephone number for the Pearce Bespoke Franchise, remove all signs and materials bearing the Pearce Bespoke name and marks, disconnect any internet website associated with the franchise, and comply with all other applicable provisions of the agreement, including non-compete clauses.
These post-termination obligations are fairly standard in franchising to protect the brand and prevent unfair competition. Prospective Pearce Bespoke franchisees should carefully review these sections to understand their responsibilities and restrictions should the franchise agreement end, whether through termination or expiration. Understanding these obligations is crucial for planning future business activities after the franchise relationship concludes.