Under what circumstances can Pearce Bespoke terminate the Development Agreement with cause?

According to Pearce Bespoke's 2025 Franchise Disclosure Document, Pearce Bespoke can terminate the Development Agreement with cause if the franchisee defaults. Specifically, Pearce Bespoke can terminate the agreement if the franchisee fails to have the minimum number of businesses open and operating by the deadline outlined in the Development Schedule. Termination can also occur if any Franchise Agreement is terminated due to the franchisee's default, or if the franchisee breaches or fails to comply with any other provision of the Development Agreement. All of these termination conditions are subject to state law.

This means that a prospective Pearce Bespoke developer must adhere strictly to the Development Schedule and all terms of the Development Agreement to avoid termination. Failure to meet development deadlines or any breach of the agreement could result in the loss of the right to develop further Franchised Businesses in the designated Development Area.

It is important for potential Pearce Bespoke franchisees to carefully review Section 6.1 of the Development Agreement, as referenced in Item 17 of the FDD, to fully understand the specific events that constitute a default. Understanding these conditions is crucial for maintaining compliance and avoiding potential termination of the Development Agreement. Franchisees should also be aware of how state laws might affect the enforcement of these termination clauses.