When is the Transfer Fee due for a Pearce Bespoke franchise?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
| 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, the Transfer Fee is due before the completion of the transfer. The transfer can involve the Franchise Agreement itself or a substantial portion of the franchise's assets, or any controlling interest in the Franchise Agreement or the assets of the Franchise.
The Transfer Fee is the greater of $10,000 or 25% of the then-current franchise fee. However, Pearce Bespoke will not charge a Transfer Fee for transfers to immediate family members. This is a fairly standard practice in franchising, as franchisors typically want to approve any new owners of a franchise to ensure they meet the brand's standards and are financially capable.
Prospective Pearce Bespoke franchisees should be aware of these transfer conditions, especially if they anticipate selling their franchise in the future or transferring it to a family member. Understanding the timing and amount of the Transfer Fee is crucial for financial planning and decision-making related to the franchise.