Are there any circumstances where the Transfer Fee for Pearce Bespoke could be negotiated?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Contribution | implementation | we reserve the right to implement | |
| one in the future, implemented by | |||
| Pearce Bespoke or the franchisees. | |||
| Local Marketing | Minimum 5% of your Gross | Minimum amount must be | See Note 5 below. See Note 6 below |
| Expenses | Sales | spent during each calendar | |
| year. | We reserve the right to increase to a | ||
| maximum of 6% upon 30 days' | |||
| written notice | |||
| Transfer Fee | Whichever is greater: | Before completion of | Subject to state law |
| (i) | transfer | ||
| $10,000 | |||
| or | |||
| (ii) | |||
| 25% of | |||
| the then current franchise | We will not charge Transfer Fee for | ||
| fee |
Source: Item 6 — OTHER FEES (FDD pages 11–15)
What This Means (2025 FDD)
According to Pearce Bespoke's 2025 Franchise Disclosure Document, the standard transfer fee is the greater of $10,000 or 25% of the then-current franchise fee. However, this fee is not charged for transfers to immediate family members, which could be considered a form of negotiated exception, as no transfer fee is charged in this specific instance.
It is important to note that the transfer fee is subject to state law, which may impose additional regulations or limitations on transfer fees. This means that the actual transfer fee and the conditions under which it is applied could vary depending on the franchisee's location. Prospective franchisees should consult with a legal professional to understand how state laws might affect the transfer of their Pearce Bespoke franchise.
Outside of transfers to immediate family, the FDD does not explicitly state that the transfer fee is negotiable. Franchise agreements often contain standardized fees, but there might be room for negotiation depending on the specific circumstances of the transfer, such as the financial health of the franchise or the qualifications of the transferee. A prospective franchisee should inquire with Pearce Bespoke about the possibility of negotiating the transfer fee under certain conditions.