After termination of the Pearce Bespoke Franchise Agreement, is the franchisee required to comply with the non-compete provisions?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
alleged default or violation will not be deemed to be a default under or violation of this Agreement.
17. FRANCHISEE'S OBLIGATIONS UPON TERMINATION
A. Post-Term Duties.
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.
18. FRANCHISEE'S COVENANTS NOT TO COMPETE
A. During Term.
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**.**
B. After Termination.
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to the 2025 Pearce Bespoke Franchise Disclosure Document, if the Franchise Agreement is terminated for any reason, the franchisee must comply with all applicable provisions of the agreement, including the non-compete provisions.
Specifically, the Pearce Bespoke franchisee is prohibited for two years after termination from engaging in any resale of a mobile business not offered by Pearce Bespoke involving the purchase and/or sale of custom clothing and accessories. This restriction applies within the franchised territory and extends to a ten-mile radius of that territory or any Pearce Bespoke Franchise. This includes acting as a consultant, partner, officer, director, or shareholder of any entity involved in such activities.
The FDD states that the two-year and ten-mile radius restrictions are deemed reasonable and necessary to protect Pearce Bespoke. Furthermore, if the franchisee breaches the non-competition agreement, the non-compete period will be extended by the length of time the franchisee was in breach. Pearce Bespoke can seek injunctive relief to prevent violations of the non-competition covenants, and the franchisee waives any defenses against such an injunction.