After termination of a Pearce Bespoke franchise, can the franchisee be required to destroy the manuals?
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.
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to Pearce Bespoke's 2025 Franchise Disclosure Document, upon termination of the Franchise Agreement, the franchisee may be required to destroy the manuals. Specifically, the franchisee must return or destroy the manuals, advertising materials, and other printed materials related to the franchise operation. The franchisor has the discretion to choose whether the franchisee returns the materials by mail or destroys them, with confirmation of destruction provided to Pearce Bespoke.
This obligation is part of the franchisee's post-termination duties, which also include paying any outstanding amounts owed to Pearce Bespoke or its suppliers, assigning or disconnecting the franchise's telephone number, removing all signs and materials bearing the Pearce Bespoke name and marks, and disconnecting any internet website associated with the franchise. The franchisee's right to use the Pearce Bespoke name and marks terminates immediately upon termination of the agreement.
Additionally, the franchisee must not copy, duplicate, or reproduce any of Pearce Bespoke's confidential information. Upon termination, the franchisee must return confidential information such as customer lists, training materials, financial records, and the manual to Pearce Bespoke. Alternatively, Pearce Bespoke may request the franchisee to destroy certain confidential information and certify the destruction.
This requirement ensures that the confidential and proprietary information of Pearce Bespoke remains protected after the franchise agreement ends. It prevents former franchisees from using the brand's operational knowledge, marketing materials, and customer data to compete with Pearce Bespoke or other franchisees. Franchisees should be aware of these obligations and prepared to comply with them in the event of termination.