Are there any conditions under which Pearce Bespoke can terminate the agreement without cause?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise | Summary | |
|---|---|---|---|
| e. | Termination by Pearce Bespoke without cause | Not Applicable | Not Applicable |
| f. | Termination by Pearce Bespoke with cause | Sections 15(A) and (B) | Pearce Bespoke can terminate the Franchise Agreement only if you default. Subject to state law. |
| Provision | Section in Development Agreement | |
|---|---|---|
| e. Termination by us without | Not Applicable | |
| cause | ||
| f. Termination by us with cause | Section 6.1 | We can terminate only if you default (see (g.) and (h.) below). Subject to state law. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 31–34)
What This Means (2025 FDD)
According to the 2025 Pearce Bespoke Franchise Disclosure Document, Pearce Bespoke does not have the right to terminate the Franchise Agreement without cause. Item 17 outlines the terms for renewal, termination, transfer and dispute resolution. Specifically, it indicates under what conditions Pearce Bespoke can terminate the agreement with cause.
With respect to the Franchise Agreement, the table indicates that under section 15(A) and (B), Pearce Bespoke can only terminate the Franchise Agreement if the franchisee defaults, subject to state law. Similarly, regarding the Development Agreement, Pearce Bespoke can terminate only if the franchisee defaults, as stated in Section 6.1, also subject to state law.
In franchising, it is typical for a franchisor to reserve the right to terminate the agreement if the franchisee fails to meet certain obligations or breaches the contract. However, termination without cause is less common, as it can create uncertainty and risk for franchisees who invest time and money into establishing their business. Prospective franchisees should carefully review the termination provisions in the Franchise Agreement and Development Agreement, and seek legal counsel to understand their rights and obligations under the agreement and applicable state laws.