Under what condition will Pearce Bespoke not charge a Transfer Fee?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Contribution | implementation | we reserve the right to implement | |
| one in the future, implemented by | |||
| Pearce Bespoke or the franchisees. | |||
| Local Marketing | Minimum 5% of your Gross | Minimum amount must be | See Note 5 below. See Note 6 below |
| Expenses | Sales | spent during each calendar | |
| year. | We reserve the right to increase to a | ||
| maximum of 6% upon 30 days' | |||
| written notice | |||
| 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 |
Source: Item 6 — OTHER FEES (FDD pages 11–15)
What This Means (2025 FDD)
According to Pearce Bespoke's 2025 Franchise Disclosure Document, a transfer fee will not be charged if the franchise is transferred to an immediate family member. Otherwise, a transfer fee will be charged before the completion of the transfer. The transfer fee is whichever is greater: $10,000, or 25% of the then-current franchise fee, and is subject to state law.
This is a fairly standard practice in franchising. Transfer fees are typically charged to cover the franchisor's administrative costs associated with approving a new franchisee, updating records, and providing training. However, many franchisors make exceptions for transfers to close family members to facilitate succession planning and keep the business within the family.
For a prospective Pearce Bespoke franchisee, this means that if they plan to eventually pass the franchise on to a child, spouse, or other immediate family member, they will not have to pay the transfer fee. However, if they sell the franchise to an unrelated third party, they should be prepared to pay a transfer fee of at least $10,000, which could be higher depending on what the then-current franchise fee is at the time of transfer. It is important to note that the transfer is subject to state law, so there may be additional regulations or requirements that apply.