Are there any limitations on Pearce Bespoke's right to implement a contribution requirement?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
etition covenants in the Franchise Agreement | | 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 | | transfers to immediate family.
Source: Item 6 — OTHER FEES (FDD pages 11–15)
What This Means (2025 FDD)
According to Pearce Bespoke's 2025 Franchise Disclosure Document, Pearce Bespoke reserves the right to implement a contribution requirement in the future, which could be managed either by Pearce Bespoke itself or by the franchisees.
Additionally, Pearce Bespoke franchisees are required to spend a minimum of 5% of their gross sales on local marketing expenses annually. Pearce Bespoke retains the right to increase this local marketing requirement to a maximum of 6% of gross sales, provided they give franchisees 30 days' written notice.
If a Pearce Bespoke franchisee fails to meet the minimum 5% spending requirement on cooperative or local advertising, Pearce Bespoke has the discretion to require the franchisee to pay the difference between what was spent and what should have been spent. Pearce Bespoke also suggests that franchisees allocate between $12,000 and $15,000 for advertising and marketing during their first year of operation.