Are there any contractual limitations on the frequency or cost of Pearce Bespoke requiring a franchisee to upgrade or update their POS System, Software, computer hardware, and other office equipment?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
We may require you to upgrade or update your POS System, Software, computer hardware, and other office equipment. No contractual limitation exists on the frequency or cost of this obligation. We will have independent access to any data which you collect electronically.
There are currently no annual costs for any optional or required maintenance update, upgrading or support contracts. Pearce Bespoke reserves the right, however, to charge a reasonable fee for any ongoing maintenance and repairs, upgrades, and support services, including the costs for the POS System, Software, and hardware components. There are no contractual limitations on the frequency and cost of this requirement. Technology is constantly changing. Pearce Bespoke may require you to update your POS System, Software, or computer hardware every five (5) years or as needed, depending on changes in technology, the Business System, and Pearce Bespoke's current standards and specifications as defined in the Manuals. Pearce Bespoke cannot provide an estimate of the annual costs of any optional or required maintenance and support contracts since Pearce Bespoke has not required its franchisees to use their POS system or Software, that may be in development or that they may develop in the future, as of our last fiscal year end.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 21–27)
What This Means (2025 FDD)
According to Pearce Bespoke's 2025 Franchise Disclosure Document, there are no contractual limitations on the frequency or cost of required upgrades or updates to the POS system, software, computer hardware, and other office equipment. Pearce Bespoke may require franchisees to upgrade or update their POS system, software, or computer hardware every five years or as needed, based on changes in technology, the Business System, and Pearce Bespoke's standards as defined in the manuals.
The FDD states that the initial cost for the POS system, software, and computer hardware is estimated to be approximately $4,200, including $1,315 for the POS system, if the franchisee does not already own the necessary hardware. The annual costs for maintenance, updates, or support contracts are estimated to be between $0 and $500 per year for both required and optional contracts. However, Pearce Bespoke is not obligated to provide any ongoing maintenance, repairs, upgrades, or updates.
Pearce Bespoke reserves the right to charge a reasonable fee for ongoing maintenance, repairs, upgrades, and support services, including costs for the POS system, software, and hardware components. The company also reserves the right to charge a periodic Technology Fee for technology-related services, estimated at roughly $1,200 per year, per franchise, which may increase up to 10% annually. Prospective franchisees should be aware that these costs can change and should factor in potential future expenses for technology upgrades and maintenance when considering the investment.