Which sections of the Pearce Bespoke Franchise Agreement and Development Agreement cover non-competition covenants?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
| Obligation | Section in Agreement | Disclosure Document Item |
|---|---|---|
| a. Site selection and acquisition/lease | Franchise Agreement (FA) Sections 7(A) and 8(O) Area Development Agreement (DA) Section 4 | Item 11 |
| b. Pre-opening purchases/leases | FA Sections 6(D) and 8(D), (O) and (P) | Items 5, 7, and 8 |
| c. Site development and other pre- | FA Section 8(B) DA | Items 6, 7, and 11 |
| opening requirements | Section 4. | |
| d. Initial and ongoing training | FA Sections 7(D) and 8(L) | Items 6, 7 and 11 |
| e. Opening | FA Section 15(A)(1) DA Section 3.1, Section 4 | Item 11 |
| f. Fees | FA Sections 2(B)(4), 4, 5, 6, 8(P), 8(Q) and 14(C)(6) DA Section 2 | Items 5, 6, 7, and 11 |
| Obligation | Section in Agreement | Disclosure Document Item |
| g. Compliance with standards and | FA Sections 8I, (I) and (N) | Items 11 and 16 |
| policies/ Manual | ||
| h. Trademarks and proprietary | FA Sections 3 and 9 | Items 13 and 14 |
| information | DA Section 8 | |
| i. Restrictions on products/ services | FA Sections 1 and 8(D) and (P) | Items 8, 11, and 16 |
| offered | ||
| j. Warranty and customer service | FA Section 8(D) | Item 11 |
| requirements | ||
| k. Territorial development and sales | FA Section 1(B) DA | Item 12 |
| quotas | Sections 3 and 4 | |
| l. Ongoing product/service purchases | FA Section 8(D) | Items 8 and 11 |
| m. Maintenance, appearance, and | FA Sections 2(B)(3) and 8(B) and I | Item 11 |
| remodeling requirements | ||
| n. Insurance | FA Section 10 | Items 6 and 8 |
| o. Advertising | FA Section 6 | Items 6, 7, 8, and 11 |
| p. Indemnification | FA Section 11 DA Section 8 | Item 6 |
| q. Owner’s participation/ | FA Sections 7(D) and 8(A) and (J) | Items 11 and 15 |
| management/staffing | ||
| r. Records/reports | FA Sections 12(A) and (B) | Item 16 |
| s. Inspections/audits | FA Section 12I | Items 6 and 11 |
| t. Transfer | FA Sections 13 and 14 DA Section 7 | Item 17 |
| u. Renewal | FA Section 2(B) | Item 17 |
| v. Post-termination obligations | FA Section 17 DA Section 8 | Item 17 |
| w. Non-competition covenants | FA Section 18 DA Section 8 | Item 17 |
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, the sections in the Franchise Agreement and Development Agreement that address non-competition covenants are FA Section 18 and DA Section 8. This information is crucial for prospective franchisees as it outlines the restrictions they will face both during the term of the franchise agreement and after its termination.
Non-competition covenants are standard in franchising to protect the brand and prevent franchisees from using the franchisor's confidential information and business model to compete against the system, either during the franchise term or after it ends. These covenants typically restrict a franchisee from operating a similar business within a defined geographic area for a specified period.
Item 17 of the Pearce Bespoke FDD provides further details regarding these post-termination obligations. A prospective franchisee should carefully review these sections with a legal advisor to fully understand the scope and enforceability of these restrictions, as they can significantly impact their future business opportunities after leaving the Pearce Bespoke franchise system.