Under what circumstances can Pearce Bespoke terminate the Franchise Agreement with cause?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise | Summary | |
|---|---|---|---|
| Agreement | |||
| a. | Length of the franchise | Section 2(A) | 10 years |
| b. | Renewal or extension of the term | Section 2(B) | If you meet the renewal requirements set forth in the Franchise Agreement, you can renew the Franchise Agreement for up to two additional 5-year period(s). |
| c. | Requirements for you to renew or extend | Section 2(B) | Provide advance notice in writing, sign then current Franchise Agreement, pay renewal fee, remodel, meet all current Brand Standards, secure extension of lease and be in compliance with current Franchise Agreement during the term of the Agreement. You may be asked to sign a Franchise Agreement with materially different terms and conditions than your original Franchise Agreement. The entire provision is subject to state law. |
| d. | Termination by you | Section 16(A) | If you are complying with the Franchise Agreement, and Pearce Bespoke fails to cure a material default within 30 days after Pearce Bespoke’s receipt of written notice, subject to state law. |
| e. | Termination by Pearce Bespoke without cause | Not Applicable | Not Applicable |
| f. | Termination by Pearce Bespoke with cause | Sections 15(A) and (B) | Pearce Bespoke can terminate the Franchise Agreement only if you default. Subject to state law. |
| g. | “Cause” defined – curable defaults | Sections 15(A) and (B) | You have 30 days to cure a violation of any material provision of the Franchise Agreement, non-payment of amounts owed to Pearce Bespoke or any applicable local advertising cooperative, failure to abide by Pearce Bespoke’s standards and requirements in operating the Franchise, an assignment of assets to creditors and the expiration or termination of the Franchise’s lease. Subject to state law. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 31–34)
What This Means (2025 FDD)
According to Pearce Bespoke's 2025 Franchise Disclosure Document, Pearce Bespoke can terminate the Franchise Agreement with cause if the franchisee defaults. The FDD outlines both curable and non-curable defaults that could lead to termination. For curable defaults, a franchisee typically has 30 days to resolve the issue. These curable defaults include violating any material provision of the Franchise Agreement, failing to pay amounts owed to Pearce Bespoke or any applicable local advertising cooperative, not adhering to Pearce Bespoke’s standards and requirements in operating the Franchise, assigning assets to creditors, and the expiration or termination of the Franchise’s lease. All of these are subject to state law.
With respect to the Development Agreement, Pearce Bespoke can terminate with cause if the franchisee defaults. A non-curable default includes failing to have open and operating the minimum number of Businesses specified in the Development Schedule by any Opening Deadline specified in the Development Schedule. Additional causes are if any Franchise Agreement is terminated as a result of default, or if the franchisee breaches or otherwise fails to comply fully with any other provision of the Development Agreement. These stipulations are also subject to state law.
It is important for prospective franchisees to understand what constitutes a default under both the Franchise Agreement and the Development Agreement, as termination can have significant consequences. Franchisees should carefully review Sections 15(A) and (B) of the Franchise Agreement and Section 6.1 of the Development Agreement, as referenced in Item 17 of the FDD, to fully understand their obligations and the potential ramifications of failing to meet them. Additionally, franchisees should be aware of any state-specific laws that may affect the termination process or their rights.