Is securing an extension of the lease a requirement for Pearce Bespoke franchise renewal?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
visions in the agreements attached to this Disclosure Document.**
A. Franchise Agreement
| Provision | Section in Franchise | Summary | |
|---|---|---|---|
| Agreement | |||
| a. | Length of the franchise | Section 2(A) | 10 years |
| b. | Renewal or extension of the term | Section 2(B) | If you meet the renewal requirements set forth in the Franchise Agreement, you can renew the Franchise Agreement for up to two additional 5-year period(s). |
| c. | Requirements for you to renew or extend | Section 2(B) | Provide advance notice in writing, sign then current Franchise Agreement, pay renewal fee, remodel, meet all current Brand Standards, secure extension of lease and be in compliance with current Franchise Agreement during the term of the Agreement. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 31–34)
What This Means (2025 FDD)
According to Pearce Bespoke's 2025 Franchise Disclosure Document, securing an extension of the lease is indeed a requirement for franchise renewal. To renew a Pearce Bespoke franchise agreement, franchisees must meet several conditions. These include providing advance written notice, signing the then-current Franchise Agreement, paying a renewal fee, completing any required remodeling, meeting all current Brand Standards, and, importantly, securing an extension of the lease. Additionally, franchisees must be in compliance with the current Franchise Agreement during its term.
This requirement means that a Pearce Bespoke franchisee needs to proactively manage their lease agreement to ensure they can secure an extension when the time comes for renewal. Failure to secure a lease extension could prevent the franchisee from being able to renew their franchise, even if they meet all other requirements. This places significant importance on maintaining a positive relationship with the landlord and planning well in advance of the lease expiration date.
It is also important to note that upon renewal, Pearce Bespoke may ask the franchisee to sign a Franchise Agreement with materially different terms and conditions than the original agreement. This means that franchisees should carefully review the new agreement and understand any changes before committing to the renewal. The renewal process and the terms of the renewed agreement are subject to state law, so franchisees should also be aware of any specific regulations in their state.