During the term of the Franchise Agreement, what is a Pearce Bespoke franchisee prohibited from doing regarding other clothing businesses?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
During the term of the Franchise Agreement, Franchisee will receive proprietary information, materials, and trade secrets specifically geared to and utilized in the Pearce Bespoke tailoring business operations for all of Franchisor's franchised brands. To protect the valuable proprietary information and prevent Franchisee from using that information to operate a business that competes with any of Franchisor's clothing brands, Franchisee (and all Personal Guarantors and owners of all or part of Franchisee) will not, during the term of this Agreement, on their own account or as an employee, agent, consultant, partner, officer, director, or shareholder of any other person, firm, entity, partnership or corporation, own, operate, lease, franchise, conduct, engage in, be connected with, have any interest in, or assist any person or entity engaged in any Pearce Bespoke clothing business not offered by Pearce Bespoke involving the purchase and/or sale of custom clothing and accessories, without Franchisor's prior written consent**.**
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to Pearce Bespoke's 2025 Franchise Disclosure Document, during the term of the Franchise Agreement, a franchisee is restricted from involvement in any competing clothing business. This restriction applies to the franchisee, their personal guarantors, and any owners of the franchise.
Specifically, franchisees are prohibited from owning, operating, leasing, franchising, conducting, engaging in, being connected with, having any interest in, or assisting any business involved in the purchase and/or sale of custom clothing and accessories that is not offered by Pearce Bespoke. This prohibition extends to acting as an employee, agent, consultant, partner, officer, director, or shareholder of any other person, firm, entity, partnership, or corporation involved in such a competing business.
To engage in any Pearce Bespoke clothing business not offered by Pearce Bespoke, a franchisee must obtain prior written consent from Pearce Bespoke. This non-compete clause is designed to protect Pearce Bespoke's proprietary information, materials, and trade secrets, which franchisees gain access to during the term of their Franchise Agreement.