Towards what is the Pearce Bespoke Development Fee credited?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
Upon execution of this Agreement, you must pay us a development fee in the amount specified in Exhibit A (the "Development Fee"), which is based on the initial franchise fee you must pay for each Mobile Franchise that you develop (the "Franchise Fee", which is also specified in Exhibit A). The Development Fee will be credited towards 100% of the Franchise Fee due under the Franchise Agreement for each Mobile Franchise that you develop pursuant to this Agreement, including the Initial Franchise Agreement. The Development Fee is fully earned by us when we and you sign this Agreement and is non-refundable, even if you do not comply with the Development Schedule.
Source: Item 23 — RECEIPTS (FDD pages 39–172)
What This Means (2025 FDD)
According to the 2025 Pearce Bespoke Franchise Disclosure Document, the Development Fee you pay when signing the Area Development Agreement is credited towards the Franchise Fee. Specifically, the Development Fee covers 100% of the Franchise Fee due under the Franchise Agreement for each Mobile Franchise you develop under the Area Development Agreement, including the Initial Franchise Agreement.
This means that while you must pay a Development Fee upfront, this fee is not an additional cost. Instead, it acts as a deposit that reduces the amount you'll need to pay later when you sign individual Franchise Agreements for each Mobile Franchise you plan to develop. This can be a significant benefit, as it allows you to spread out the initial investment over time as you develop each location.
However, it's important to note that the Development Fee is fully earned by Pearce Bespoke upon signing the Area Development Agreement and is non-refundable. This means that if you fail to meet the Development Schedule outlined in the agreement and do not develop all the Mobile Franchises you initially planned, you will not receive a refund of the Development Fee. Therefore, prospective franchisees should carefully consider their ability to meet the development schedule before entering into an Area Development Agreement with Pearce Bespoke.