Under what circumstances related to fees can a Pearce Bespoke franchise be terminated?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
raining. There will be no transfer fee payable for transfers to immediate family members (i.e.: spouse or children).
15. FRANCHISOR'S TERMINATION RIGHTS
A. Grounds.
Franchisee will be in default, and Franchisor may, at its option, terminate this Agreement, as provided herein, if:
- (1) Franchisee fails to open and commence operations of the Pear
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to the 2025 Pearce Bespoke Franchise Disclosure Document, the franchise agreement can be terminated if the franchisee fails to pay certain fees. Specifically, Pearce Bespoke may terminate the franchise agreement if the franchisee fails to timely pay Royalty Fees, Marketing, Technology or Advertising Fees, buying group (inventory) obligations or any other fees, obligations or liabilities due and owing to Franchisor or fails to timely pay any advertising cooperative obligations.
This means that a franchisee's failure to keep up with required payments can result in the termination of their franchise agreement. This includes not only the standard royalty fees but also any marketing, technology, or advertising fees, as well as obligations related to buying group inventory or any other fees owed to Pearce Bespoke. The franchisee is also obligated to pay any advertising cooperative obligations in a timely manner.
This provision highlights the importance of maintaining good financial standing with Pearce Bespoke. A prospective franchisee should carefully consider their ability to manage these ongoing costs and ensure they have sufficient capital to meet these obligations. Failure to do so could lead to the loss of their franchise.