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What specific actions could trigger the Operational Standards Violation Fee for Pearce Bespoke franchisees?

Pearce_Bespoke Franchise · 2025 FDD

Answer from 2025 FDD Document

all costs including transportation, lodging, |

Type of Fee Amount Due Date Remarks
meals, and wages, if applicable.
Annual Certification Training $199 per session Yearly All active clothiers will be required to attend our annual certification training (the "Annual Certification Training"), which may be held online or in person at a location that we designate. We anticipate the cost of recertification will be approximately $199 and will be held monthly.
Approval of Supplier Fee $500 plus cost of examination and approval of a supplier requested by Franchisee. Prior to examination You will purchase only such types, models or brands of items, furniture, equipment, signs, and supplies that We approve for Pearce Bespoke as meeting its specifications and standards, including specifications and standards for quality, design, warranties, appearance, function, and performance.
Operational Standards $250 to $1,000 per occurrence As incurred Payable to us.
Violation Fee
Liquidated Damages – Violation of Confidentiality or Non-Competition Covenants $100,000, plus our attorneys' fees Per Occurrence Payable to us if you violate the confidentiality and/or non com

Source: Item 6 — OTHER FEES (FDD pages 11–15)

What This Means (2025 FDD)

According to Pearce Bespoke's 2025 Franchise Disclosure Document, an Operational Standards Violation Fee, ranging from $250 to $1,000 per occurrence, is payable to Pearce Bespoke as incurred. However, the document does not specify what actions or failures to act would trigger this fee.

Without specific examples of violations, prospective Pearce Bespoke franchisees should inquire with the franchisor to gain a comprehensive understanding of what constitutes a breach of operational standards. Knowing the specific actions that could lead to this fee is crucial for franchisees to avoid incurring unexpected costs and maintain compliance.

Understanding the triggers for the Operational Standards Violation Fee is essential for budgeting and operational planning. Franchisees should seek clarity on this matter during their due diligence process to ensure they can meet Pearce Bespoke's expectations and avoid penalties.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.