Under what conditions does Pearce Bespoke charge additional fees for franchisee training?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
Pre-opening services include training and general assistance. The Company has adopted the franchisor practical expedient Accounting Standards Update (ASU) 2021-02, Franchisors – Revenue from Contracts with Customers (Subtopic 952-606), which allows the Company to treat pre-opening services as distinct from one another. Training is provided to the franchisee at no additional cost unless additional training is required. Additional training fees are recognized when the service is provided. Pre-opening assistance is provided to the franchisee as needed, and recognized when the service is charged.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 39)
What This Means (2025 FDD)
According to Pearce Bespoke's 2025 Franchise Disclosure Document, initial training is provided to the franchisee at no additional cost. However, Pearce Bespoke does reserve the right to charge additional fees if additional training is required beyond the initial training program. These additional training fees are recognized as revenue by Pearce Bespoke when the service is provided to the franchisee.
This means that while the initial training is included in the franchise fee, franchisees should be aware that circumstances may arise where they need extra training, which will incur additional costs. It is important for prospective franchisees to understand what the initial training covers and what situations might necessitate additional training to budget accordingly.
Franchisees should inquire with Pearce Bespoke about the scope of the initial training program, the typical reasons franchisees might need additional training, and an estimate of the costs associated with such additional training. This will help them make informed financial decisions and avoid unexpected expenses as they start and grow their Pearce Bespoke franchise.