After termination of the Pearce Bespoke Franchise Agreement, is the franchisee required to assign or disconnect the telephone number for the franchise?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
If this Agreement is terminated for any reason, Franchisee will: (1) within five (5) days after termination, pay all amounts due and owing to Franchisor or suppliers under this Agreement; (2) return by first class prepaid United States mail or at Franchisor's sole discretion, destroy and confirm destruction thereof to Franchisor the all equipment, Manuals any other manuals, advertising materials, all other printed materials or assets relating to the operation of the franchised business; (3) assign to Franchisor or, at Franchisor's discretion, disconnect the telephone number for the Pearce Bespoke Franchise; and (4) remove all signs and other materials bearing the name "Pearce Bespoke" and other Marks; (5) disconnect any internet website Franchisee has established in connection with Franchisee's operation of the Pearce Bespoke Franchise; and (6) comply with all other applicable provisions of this Agreement, including the non-compete provisions. Upon termination of this Franchise Agreement for any reason, Franchisee's right to use the name "Pearce Bespoke" and the other Marks and the Business System will immediately terminate. If Franchisee fails to remove all signs and other materials bearing the Marks, Franchisor may do so at Franchisee's expense.
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to the 2025 Pearce Bespoke Franchise Disclosure Document, upon termination of the Franchise Agreement, the franchisee has specific obligations regarding the telephone number associated with the franchise. The franchisee is required to either assign the telephone number to Pearce Bespoke or, at Pearce Bespoke's discretion, disconnect the telephone number. This requirement applies regardless of the reason for termination.
This provision ensures that Pearce Bespoke maintains control over its brand identity and customer communication channels. By requiring the franchisee to assign or disconnect the phone number, Pearce Bespoke can prevent potential confusion or misuse of the number after the franchise agreement ends. This is a fairly standard practice in franchising, as franchisors typically want to ensure a clean break and maintain consistency in branding and customer service.
For a prospective Pearce Bespoke franchisee, this means that upon termination (whether voluntary or involuntary), they will lose the right to use the franchise's phone number. They should factor this into their business planning, particularly when considering customer communication strategies and the potential need to establish a new phone number for any future business ventures. It is important to note that the choice between assigning the number to Pearce Bespoke or disconnecting it lies with Pearce Bespoke, not the franchisee.