Under what condition must a Pearce Bespoke franchisee delete customer information?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
Upon the expiration or termination of this Agreement, Franchisee and Personal
Guarantors agree to return to Franchisor such Confidential Information as Franchisor requests (including customer lists and records; all training materials and other instructional content; financial and non-financial books and records; the Manual; and, computer databases, software and manuals) which are then in Franchisee's or Personal Guarantor's possession, or upon Franchisor's request, destroy all or certain Confidential Information and certify such destruction to Franchisor.
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to Pearce Bespoke's 2025 Franchise Disclosure Document, upon the expiration or termination of the Franchise Agreement, the franchisee is required to return to Pearce Bespoke any Confidential Information that Pearce Bespoke requests. This includes customer lists and records, training materials, financial records, the operations manual, computer databases, software, and manuals. If Pearce Bespoke requests, the franchisee must destroy all or certain Confidential Information and certify this destruction to Pearce Bespoke.
This means that when a Pearce Bespoke franchise agreement ends, either through expiration or termination, the franchisee does not retain the customer data or other confidential business information. Instead, they must either return it to Pearce Bespoke or, if instructed, destroy it and provide proof of destruction. This is a standard practice in franchising to protect the brand's proprietary information and customer relationships.
For a prospective franchisee, this clause highlights the importance of understanding that customer relationships built during the franchise term ultimately belong to Pearce Bespoke. The franchisee cannot take this customer base with them if they leave the system. This also underscores the need to maintain accurate records and be prepared to transfer or destroy them at the end of the agreement, as directed by Pearce Bespoke.