What is the stated purpose of the national account fee charged by Pearce Bespoke to franchisees?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor may manage or provide services directly to strategic VIP, national and/or regional accounts that require centralized overview and support, and for purposes of responding to requests and referrals for services through the franchise system, managing those relationships, answering calls placed to the toll-free number or a national account on-line access system. In that case, Franchisor may charge Franchisee a fee between one percent and ten percent (1%-10%) of Gross Sales generated by the account. The purpose of the fee is to defray the cost of providing national/regional account management services to the franchise system. Franchisor does not plan to charge a fee for simple referrals where it does not directly manage the relationship with the customer, but it reserves the right to do so.
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to Pearce Bespoke's 2025 Franchise Disclosure Document, the national account fee is designed to defray the cost of providing national/regional account management services to the franchise system. Pearce Bespoke may manage or provide services directly to strategic VIP, national, and/or regional accounts that require centralized oversight and support. This includes responding to requests and referrals for services through the franchise system, managing relationships with these accounts, and answering calls to a toll-free number or a national account online access system.
If Pearce Bespoke manages these accounts, they may charge franchisees a fee ranging from 1% to 10% of the gross sales generated by the account. However, Pearce Bespoke does not plan to charge a fee for simple referrals where it does not directly manage the customer relationship, but it reserves the right to do so in the future.
This fee structure means that franchisees will contribute to the cost of maintaining and managing large, potentially lucrative national accounts. While this could provide access to business opportunities they might not otherwise have, it also means a portion of their revenue from these accounts will be allocated to the franchisor for these management services. Prospective franchisees should consider the potential benefits of access to national accounts against the cost of the associated fees when evaluating the Pearce Bespoke franchise opportunity.