Who has sole discretion over all matters relating to the operations of the Pearce Bespoke Brand Fund?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
The Brand Fund will have the characteristics and be operated according to the terms contained in this section. Franchisor has sole discretion over all matters relating to its operations and is solely
responsible for its financial management. The Brand Fund will be accounted for separately and contributions may be used to pay for taxes related to the Fund and all administrative, accounting, audit, legal and other costs related to Fund activities and purposes and/or as authorized by the relevant Franchise Agreements. Franchisor will prepare and provide franchisees each calendar year a financial report of revenues and expenditures for the Brand Fund, which report may or may not be audited at Franchisor's discretion. The Brand Fund may be used as Franchisor considers appropriate, including for, but not limited to, the costs of preparing and conducting radio, television, electronic and print advertising campaigns in any local, regional or national medium; utilizing networking media social sites, such as Facebook, Twitter (x), Bluesky, Instagram, TikTok, YouTube, Threads, LinkedIn, and on-line blogs and forums; developing, maintaining, and updating a World Wide Web or Internet site for the System; direct mail advertising; deploying social networking promotional initiatives through online media channels; marketing surveys; employing advertising and/or public relations agencies to provide assistance; purchasing promotional items; conducting and administering promotions and "mystery shopper" program(s); implementation and use of customer relationship management software and solutions; and providing promotional and other marketing materials and services to the Pearce Bespoke franchises operating under the System. Franchisor is not required to spend any amount of the Fund in Franchisee's Franchised Territory. Franchisor may use a portion of the Brand Fund for the costs and overhead, if any, it incurs in activities reasonably related to the implementation of advertising and marketing programs for franchisees.
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to Pearce Bespoke's 2025 Franchise Disclosure Document, the Franchisor has sole discretion over all matters relating to the operations of the Brand Fund and is solely responsible for its financial management. This means Pearce Bespoke, not the franchisees, decides how the Brand Fund is run and how its money is handled.
The Brand Fund will be accounted for separately, and contributions can be used to cover taxes, administrative, accounting, audit, legal, and other costs related to the Fund's activities. Pearce Bespoke will provide franchisees with a financial report of revenues and expenditures for the Brand Fund each calendar year, but this report may or may not be audited, depending on Pearce Bespoke's discretion.
The Brand Fund can be used for various advertising and marketing activities, including radio, television, electronic, and print advertising campaigns, social media marketing, website development, direct mail advertising, marketing surveys, public relations, promotional items, and customer relationship management software. Pearce Bespoke is not obligated to spend any amount of the Fund in a franchisee's specific territory. A portion of the Brand Fund may also be used to cover Pearce Bespoke's costs and overhead related to implementing advertising and marketing programs for franchisees.
Pearce Bespoke also has the right to spend more or less than the aggregate contributions to the Fund in any fiscal year and can borrow funds to cover deficits. Pearce Bespoke can accumulate funds over time and invest any surplus. They can also defer, waive, or compromise claims for contributions to the Fund and take action against franchisees who default on their obligations. Franchisees acknowledge that Pearce Bespoke is not obligated to ensure that expenditures by the Brand Fund are proportionate to contributions from franchisees in any geographic area, and no franchisee is guaranteed to benefit directly or in proportion to their contribution. Any interest earned on Fund contributions will be remitted to the Brand Fund. Pearce Bespoke can terminate the Brand Fund at its sole discretion, but only after all contributions have been expended or returned to franchisees in good standing on a pro rata basis.