What is the term length used in the vehicle financing example for a Pearce Bespoke franchise?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
ower their initial vehicle investment requirement. You can choose the type of vehicle to purchase or lease, but we have used a Toyota Corolla price reference for purposes of this section. The total estimated cost to purchase the vehicle ranges between $21,000 - $30,000. Should you choose to finance your vehicle, our estimates are based on a 20% deposit on the final purchase invoice with the remainder financed over a 60-month term at an interest rate of 3%. The high side of our estimate is based upon three months of payments. Your deposit, term, and interest may vary. Additionally, the vehicle must be box wrapped with Pearce Bespoke app
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 15–19)
What This Means (2025 FDD)
According to Pearce Bespoke's 2025 Franchise Disclosure Document, the vehicle financing example assumes a 60-month term. This is part of the estimated initial investment a franchisee might need. The FDD uses a Toyota Corolla as a price reference, estimating the total cost to purchase between $21,000 and $30,000.
Pearce Bespoke's estimate includes a 20% deposit on the final purchase invoice, with the remaining balance financed over the 60-month term at a 3% interest rate. The high side of the vehicle lease estimate is based on three months of payments. However, the FDD clearly states that the actual deposit, term, and interest rate may vary depending on the franchisee's specific circumstances and the financing source.
It's important to note that franchisees are not required to purchase or lease a vehicle, provided their existing vehicle is in good working condition and no more than five years old. If a franchisee chooses to finance a vehicle, the 60-month term is just an example used for estimation purposes. The actual financing terms will depend on the lending institution and the franchisee's creditworthiness. Additionally, any vehicle used must be box wrapped with Pearce Bespoke approved marks and logos.