What is the standard Brand Fund Fee that Pearce Bespoke franchisees must pay?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
Pearce Bespoke You must pay us a Brand Fund Fee of 2% of Gross Sales per week, which we may increase up to a maximum of 3% of Gross Sales per week. Pearce Bespoke administers the use of Brand Fund Fees collected from franchisees. Not all Pearce Bespoke franchisees will benefit directly or on a pro-rata basis from the Brand Fund's expenditures. We may contribute to the Brand Fund in our sole discretion and be reimbursed later by the Brand Fund. Pearce Bespoke does not prepare a financial statement as to the collection and use of Brand Fund Fees, nor are the Brand Fund Fees audited. Pearce Bespoke will, however, provide you (at your request) an accounting of the most recently completed fiscal year. Pearce Bespoke is not obligated to spend any amount of the Brand Fund Fee on advertising in the area or territory where you are located. Pearce Bespoke will carry over for future use Brand Fund Fees not spent in any fiscal year. While we do not
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 21–27)
What This Means (2025 FDD)
According to Pearce Bespoke's 2025 Franchise Disclosure Document, franchisees must pay a Brand Fund Fee. This fee is 2% of Gross Sales per week. Pearce Bespoke retains the right to increase this fee up to a maximum of 3% of Gross Sales per week.
The Brand Fund is used to cover the costs of advertising, social media, and public relations efforts. These efforts may include television, radio, magazine, and newspaper advertising campaigns, as well as direct mail and outdoor billboard advertising. The fund also covers the costs of maintaining websites and social media pages, and the expenses related to advertising agencies and internal personnel.
Pearce Bespoke administers the Brand Fund and is not obligated to ensure that all franchisees benefit directly or proportionally from its expenditures. Pearce Bespoke may contribute to the fund and be reimbursed later. While Pearce Bespoke will provide an accounting of the Brand Fund's collection and use upon request for the most recently completed fiscal year, the Brand Fund Fees are not audited, and Pearce Bespoke does not prepare a financial statement regarding the fund. Pearce Bespoke may carry over unspent Brand Fund Fees for future use and reserves the right to use the fund for advertising or public relations that solicit the sale of additional franchises.