Under what condition will Pearce Bespoke recover costs and attorneys' fees?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Encroachment Fee | 20% of all revenue generated from any client in any territory outside of your Franchised Territory, payable to us or the franchisee whose territory was | As outlined in the Manuals. Currently, they are due 10 days after notice from us | Imposition of such fees are based upon the facts leading up to the alleged encroachment and the determination of whether to charge such fees will be at our sole discretion. |
| Costs and Attorneys' Fees | encroached Will vary under circumstances | When incurred | Pearce Bespoke shall recover costs and reasonable attorneys' fees if Pearce Bespoke ultimately prevails in a dispute. |
Source: Item 6 — OTHER FEES (FDD pages 11–15)
What This Means (2025 FDD)
According to Pearce Bespoke's 2025 Franchise Disclosure Document, Pearce Bespoke can recover costs and reasonable attorneys' fees if it ultimately prevails in a dispute with a franchisee. This means that if a franchisee and Pearce Bespoke have a disagreement that leads to legal action, the party that wins the case is entitled to have their legal costs covered by the losing party.
For a prospective Pearce Bespoke franchisee, this condition highlights the importance of adhering to the franchise agreement and attempting to resolve disputes amicably. Legal battles can be expensive, and this clause ensures that Pearce Bespoke will not bear the financial burden of litigation if they win a dispute.
This type of clause is relatively standard in franchise agreements. It serves as a deterrent against frivolous lawsuits and encourages both parties to act in good faith when disagreements arise. Franchisees should carefully review the franchise agreement and seek legal counsel to fully understand their rights and obligations, and the potential financial consequences of a dispute with Pearce Bespoke.