Under what condition can Pearce Bespoke withhold approval of a third-party transferee of a Pearce Bespoke franchise?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
ights granted to you under this Agreement are personal to you and neither this Agreement, nor any of the rights granted to you hereunder nor any controlling equity interest in you may be voluntarily or involuntarily, directly or indirectly, by operation of law or otherwise, assigned or otherwise transferred, given away, or encumbered by you without our prior written approval, which we may grant or withhold for any or no reason.
7.2 Our Right of First Refusal.
- (a) If you receive, and desire to accept, from a third party a bona fide offer to transfer any of your rights in this Agreement, you shall promptly notify us in writing and send us an executed copy of the contract of transfer. We shall have the right and option, exercisable within thirty (30) days after actual receipt of such notification or of the executed contract of transfer which shall describe the terms of the offer, to send written notice to you that we intend to purchase your interest on the same terms and conditions offered by the third party.
- (b) Closing on the purchase must occur within sixty (60) days from the date of notice by us to you of our election to purchase. If
Source: Item 23 — RECEIPTS (FDD pages 39–172)
What This Means (2025 FDD)
According to Pearce Bespoke's 2025 Franchise Disclosure Document, Pearce Bespoke has the right to withhold approval of a third-party transferee of a franchise in its sole discretion.
This means that if a franchisee desires to sell their Pearce Bespoke franchise to someone else, Pearce Bespoke has the authority to reject the proposed buyer for any reason. This is a significant point for prospective franchisees to consider. Even if a franchisee finds a qualified buyer willing to pay a fair price, Pearce Bespoke can prevent the sale from happening.
Pearce Bespoke also retains the right of first refusal. If a franchisee receives a legitimate offer from a third party to buy their franchise rights, the franchisee must first notify Pearce Bespoke in writing and provide a copy of the transfer contract. Pearce Bespoke then has 30 days to decide whether to purchase the franchisee's interest on the same terms and conditions as the third-party offer. If Pearce Bespoke declines, the franchisee has 60 days to complete the transfer, subject to Pearce Bespoke's final approval of the transferee. Any changes to the offer terms restarts the process, giving Pearce Bespoke another opportunity to exercise its right of first refusal. This clause allows Pearce Bespoke to control who enters their franchise system and maintain brand standards.