Does Pearce Bespoke share any of the benefits it receives from Approved Suppliers with Pearce Bespoke franchisees?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
Pearce Bespoke may provide certain administrative, technical, design, and advisory services and data to a limited number of Approved Suppliers and other suppliers. We and/or our affiliates may negotiate supply contracts with our Approved Suppliers or other suppliers under which we are able to purchase products, equipment, supplies, services, and other items at a price that will benefit us and our franchisees. We and/or our affiliate(s) may receive payments or other compensation from Approved Suppliers or any other suppliers on account of these suppliers' dealings with us, you, or other franchises in the Business System, such as barters, cash, credit (regardless of collection), rebates, allowances, commissions, or any other forms of compensation. We may use any amountsthat we receive from Approved Suppliers and other suppliers for any purpose that we deem appropriate as a result of any and all transactions with franchisees.
Pearce Bespoke has negotiated or will negotiate programs with several manufacturers and suppliers so that franchisees may benefit from volume purchasing and prepaid freight programs. Third party vendors may charge franchisees directly for products or services. The Business System's standards and specifications are based upon our experience with various vendors, contractors, and suppliers in the custom clothing and franchising industries and we will provide you with a list of our approved suppliers ("Approved Suppliers"). Pearce Bespoke retains the sole and absolute discretion to make the final determination on all Approved Suppliers, however, we will consider supplier approval requests from franchisees upon written request. We will approve or disapprove a supplier within 30 days after we receive written notice from you. All suppliers you use must be approved by us before you can use them and may be subject to our training and reporting requirements.
In the last fiscal year ending on December 31, 2023, we had total revenues of $572,535 of which $234,000, or 40.1%, was derived in revenue from required franchisee purchases or leases. Our affiliates have not received any other rebates, discounts or other material consideration from any other suppliers based on your required purchases of products, supplies or equipment.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 19–20)
What This Means (2025 FDD)
According to Pearce Bespoke's 2025 Franchise Disclosure Document, Pearce Bespoke may negotiate contracts with Approved Suppliers or other suppliers to purchase products, equipment, supplies, services, and other items at a price that benefits both Pearce Bespoke and its franchisees. Pearce Bespoke and its affiliates may receive payments or other compensation from these suppliers due to their dealings with Pearce Bespoke, franchisees, or other franchises within the Business System. These compensations can take various forms, including barters, cash, credit, rebates, allowances, or commissions. However, Pearce Bespoke retains the right to use any amounts received from Approved Suppliers for any purpose they deem appropriate, even if it results from transactions with franchisees.
Pearce Bespoke has negotiated or will negotiate programs with several manufacturers and suppliers so that franchisees may benefit from volume purchasing and prepaid freight programs. This indicates that while Pearce Bespoke may receive compensation from suppliers, they also aim to establish programs that directly benefit franchisees through better purchasing terms. Franchisees may be charged directly by third-party vendors for products or services.
In the fiscal year ending December 31, 2023, Pearce Bespoke's total revenues were $572,535, with $234,000 (40.1%) derived from required franchisee purchases or leases. The FDD states that Pearce Bespoke's affiliates have not received any other rebates, discounts, or other material consideration from any other suppliers based on your required purchases of products, supplies or equipment. This demonstrates the financial relationship between Pearce Bespoke and its franchisees through required purchases and the revenue generated from them.
In summary, while Pearce Bespoke may receive benefits from Approved Suppliers, some of these benefits, such as volume purchasing and prepaid freight programs, are passed on to franchisees. However, Pearce Bespoke has the discretion to use the compensation it receives from suppliers for any purpose, which may or may not directly benefit franchisees.