Who is solely responsible for the financial management 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 the 2025 Pearce Bespoke Franchise Disclosure Document, the franchisor has sole discretion over all matters relating to the Brand Fund's operations and is solely responsible for its financial management. This means that Pearce Bespoke franchisees do not have direct control over how the Brand Fund is managed or how its money is spent.
The Brand Fund is accounted for separately, and contributions may be used to cover taxes related to the fund, as well as administrative, accounting, audit, legal, and other costs related to fund activities. The franchisor 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 the franchisor's discretion.
The Brand Fund can be used for various marketing and advertising activities, including radio, television, electronic, and print campaigns, social media marketing, website development, direct mail advertising, marketing surveys, and public relations. Pearce Bespoke is not required 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 the franchisor'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 Brand Fund in any fiscal year and can borrow funds to cover deficits. The franchisor can accumulate funds over time and invest any surplus. Franchisees should be aware that the franchisor has no obligation to ensure that expenditures from the Brand Fund are proportionate to contributions from franchisees in any geographic area, nor is there a guarantee that any franchisee will benefit directly or in proportion to their contribution. The Brand Fund is not considered a trust or fiduciary arrangement.