Under what circumstances is the initial franchise fee for a Pearce Bespoke franchise refundable?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
FEES**
Franchise Agreement
When you sign your Franchise Agreement, you must pay to us the initial franchise fee ("Franchise Fee") of $55,900, for a Franchised Territory with a population of between 50,000 to 200,000 people or $29,000 for a Franchised Territory with a population of no more than 50,000 people. The Franchise Fee is due upon the signing of our Franchise Agreement and is considered fully earned by Pearce Bespoke upon payment. The Franchise Fee includes your license to operate the Franchise. This Franchise Fee is not refundable, in whole or in part, under any circumstances. The initial Franchise Fee is calculated and applied uniformly to all our franchisees. The method we use to calculate the Franchise Fee is uniform for all franchises that we offer through this Disclosure Document.
Source: Item 5 — INITIAL FEES (FDD pages 9–11)
What This Means (2025 FDD)
According to Pearce Bespoke's 2025 Franchise Disclosure Document, the initial franchise fee is generally not refundable. The Franchise Agreement states that upon signing, a franchisee must pay an initial franchise fee of $55,900 for a territory with a population between 50,000 and 200,000, or $29,000 for a territory with a population of no more than 50,000. This fee is considered fully earned by Pearce Bespoke upon payment and is explicitly stated as non-refundable, in whole or in part, under any circumstances. This applies uniformly to all franchisees.
In addition to the initial franchise fee, Pearce Bespoke franchisees may encounter other fees, such as a Development Fee if they enter into a Development Agreement to open multiple franchises. They will also be required to pay $8,000 per Franchised Territory for the Opening Inventory Package. There is also a Clothier Inventory Package available for $2,700 per clothier. The FDD states that the Franchise Fee, Development Fee, Opening Inventory Package, On-Site Training, and Clothier Inventory Package (collectively, "Initial Fees") will be deemed fully earned upon payment and are not refundable under any circumstances.
Prospective Pearce Bespoke franchisees should be aware that this non-refundable policy is relatively common in the franchise industry, as the initial fee compensates the franchisor for the costs associated with granting the franchise and providing initial support. However, it is crucial to carefully consider the investment and conduct thorough due diligence before signing the Franchise Agreement, as the franchisee will not be able to recover the initial fee if they later decide not to proceed with the franchise.