Is there a fee that a Pearce Bespoke franchisee can pay to avoid termination?

According to the 2025 Pearce Bespoke Franchise Disclosure Document, a franchisee may be able to pay a fee in lieu of termination under certain circumstances. Specifically, if a franchisee fails to pay a fee charged in lieu of termination, this can be grounds for Pearce Bespoke to terminate the Franchise Agreement. This implies that Pearce Bespoke may offer the option to pay a fee as an alternative to termination.

This provision gives Pearce Bespoke some flexibility in dealing with franchisee defaults. Rather than immediately terminating the agreement, they can assess a fee, potentially allowing the franchisee to continue operating if they rectify the situation by paying the fee. This could be beneficial for both parties, as the franchisee retains their business, and Pearce Bespoke avoids the disruption of a termination and potential litigation.

However, the FDD does not specify the exact circumstances under which this fee would be offered, nor does it detail how the fee amount would be determined. A prospective Pearce Bespoke franchisee should inquire with the franchisor about the specific conditions and amounts related to this fee to fully understand their options in the event of a default that could lead to termination.