When is the transfer fee payable for a Pearce Bespoke franchise?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| 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. |
-
- This fee is payable when the Franchise Agreement or a substantial portion of the assets of the Franchise or any controlling interest in the Franchise Agreement or the assets of the Franchise are transferred.
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 fee is either $10,000 or 25% of the then-current franchise fee, whichever is greater.
This fee applies when the Franchise Agreement, a substantial portion of the franchise's assets, or any controlling interest in the Franchise Agreement or assets is transferred. However, Pearce Bespoke will not charge a transfer fee for transfers to immediate family members, which could be a significant benefit in certain succession planning scenarios.
It's important to note that the transfer is subject to state law, meaning that specific regulations in the franchisee's state may impact the transfer process and associated fees. Prospective franchisees should consult with a legal professional to understand these state-specific requirements and ensure compliance. Understanding the conditions under which the transfer fee is payable is crucial for franchisees considering selling their business or transferring ownership.