factual

How will the Technology Fee be collected from Pearce Bespoke franchisees?

Pearce_Bespoke Franchise · 2025 FDD

Answer from 2025 FDD Document

or the assets of the Franchise are transferred.

    1. You must pay us, or a third party that we designate, a technology fee for various technology services that we will provide or arrange for third parties to provide to you, which services are subject to change over time (the "Technology Fee"). Currently, the Technology Fee is a pass-through cost for the technology services we provide for you from the date that you open your Business for business and will be collected in the same manner as the Royalty Fee and Brand Fund Fee. We reserve the right to implement a non-pass-through Technology Fee for technology and website development services we will provide. We reserve the right to increase the Technology Fee by providing you with written notice of any change at least thirty (30) days prior to the implementation of the new fee amount. We may add, delete, or otherwise modify the products and services that are included in the Technology Fee. In addition to the monthly Technology Fee, you will be responsible for any "per transaction" fee charged by third-party vendors for mobile application or online bookings, if any. The maximum increase for the Technology Fee is 10% annually.

ITEM 7 ESTIMATED INITIAL INVESTMENT

Your Estimated Initial Investment for a Single Franchised Territory Franchise

TYPE OF AMOUNT METHOD TO WHOM
EXPENDITURES1 LOW HIGH OF WHEN DUE PAYMENT IS
ESTIMATE ESTIMATE PAYMENT TO BE MADE
Initial Franchise Fee2 $29,000 $55,900 Lump sum When you sign the Franchise Agreement Pearce Bespoke
Travel and Living Expenses For Training3 $199 $2,500 As arranged As incurred Lodging, Transportation, and Meals
On-Site Training4 $0 $5,000 As arranged As incurred Lodging, Transportation, and Meals
Rent (3 months)5 $0 $1,500 As arranged According to lease Lessor/Landlord
Opening Inventory & $8,000 $8,000 Lump Sum Before opening Pearce Bespoke
Equipment Package6
Clothier Recruiting $0 $6,000 Lump Sum Before opening Third-party
Services7 suppliers
Clothier Inventory $0 $5,400 Lump Sum Before opening Pearce Bespoke
Package8
Uniforms9 $500 $3,750 As arranged As incurred Pearce Bespoke
TYPE OF AMOUNT METHOD TO WHOM
EXPENDITURES1 LOW HIGH OF WHEN DUE PAYMENT IS
ESTIMATE ESTIMATE PAYMENT TO BE MADE
Advertising & Marketing $1,000 $5,000 As arranged As incurred Third-party
Introduction Program10 suppliers
Technology Fee (3 $300 $300 As arranged As incurred Pearce Bespoke
months)11
POS System Subscription $1,155 $1,155 As arranged As incurred Pearce Bespoke
Fee (3 months)12
Computer System13 $0 $2,500 Lump sum Before opening Third-party suppliers
POS System $1,315 $1,315 Lump sum Before opening Third-party suppliers
Supplies14 $350 $1,000 As arranged Before training Third-party suppliers
Insurance15 $1,000 $2,000 As arranged Before training Third-party supplier
Licenses and Permits16 $100 $500 As arranged As incurred Government Agencies
Professional Fees17 $0 $5,000 As arranged Before opening Third-party suppliers
Vehicle Lease18 $0 $1,500 As incurred Before opening Third-party suppliers
Additional Funds – 3 Months19 $0 $20,000 As incurred As incurred Employees or third-party suppliers
TOTAL $42,919 $128,320
#### Notes:
    1. Except where otherwise noted, all fees that you pay to Pearce Bespoke are nonrefundable. Refund related questions related to third-party lessors, contractors, suppliers, and vendors will be governed by the terms of each of those respective contracts. All amounts are in USD.
    1. Initial Franchise Fee. The initial Franchisee Fee for a Pearce Bespoke Franchise is $55,900, for a Franchised Territory with a population of between 50,000 to 200,000 people or $29,000 for a Franchised Territory with a population of no more than 50,000 people. The initial Franchise Fee is non-refundable and is deemed earned upon receipt.
    1. Travel and Living Expenses For Training.

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

What This Means (2025 FDD)

According to Pearce Bespoke's 2025 Franchise Disclosure Document, the Technology Fee will be collected in the same manner as the Royalty Fee and Brand Fund Fee. Currently, the Technology Fee is a pass-through cost for the technology services Pearce Bespoke provides from the date the franchisee opens their Business. The fee is currently $25 per week but is subject to increases not to exceed 10% annually.

Pearce Bespoke requires franchisees to allow them to withdraw royalty fees, brand fund fees, and other fees directly from the franchisee's bank account. On a weekly basis, Pearce Bespoke will calculate the Gross Sales, Net Sales, and Credit Card Sales generated from the operation of the franchise. Pearce Bespoke will pay the franchisee by EFT, ACH, direct deposit, or by similar means, the Net Sales generated from the operation of the franchise during the previous calendar week minus the amount owed for the Technology Fee.

In addition to the monthly Technology Fee, franchisees will be responsible for any "per transaction" fee charged by third-party vendors for mobile application or online bookings, if any. Pearce Bespoke reserves the right to implement a non-pass-through Technology Fee for technology and website development services and may add, delete, or otherwise modify the products and services that are included in the Technology Fee. Pearce Bespoke will provide written notice of any change to the Technology Fee at least thirty (30) days prior to the implementation of the new fee amount.

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.