Under what conditions 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 is generally required when the Franchise Agreement or a substantial portion of the assets of the Franchise, or any controlling interest, is transferred. The transfer fee is either $10,000 or 25% of the then-current franchise fee, whichever is greater, and is due before the completion of the transfer.
However, Pearce Bespoke outlines a specific condition under which the transfer fee is waived. The franchise will not charge a transfer fee for transfers to immediate family members. This provides an opportunity for franchisees to pass the business on to their children or other close relatives without incurring this expense.
This policy regarding transfer fees is subject to state law, so franchisees should verify that this exception is valid in their state. This type of exception for family transfers is not uncommon in franchising, as it allows for business continuity within a family. Prospective franchisees should carefully consider these transfer conditions as part of their long-term business and estate planning.