Under what conditions can a Pearce Bespoke franchisee renew their franchise agreement?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
| Initial Franchise Fee (for | ||
|---|---|---|
| Number of Franchised | each Franchised | |
| Businesses | Business) | |
| First | $49,500 | |
| Second | $42,000 | |
| Third | $38,000 | |
| Fourth | $30,000 | |
| Fifth | $25,000 | |
| Thereafter | $20,000 |
Note 2 – Summary of Significant Accounting Policies – Continued
The initial fees are paid in consideration of the rights granted in the franchise agreement and are non-refundable. The initial fees are recognized as revenue over the term of the initial franchise agreement, which is ten years. Subject to certain requisites, the Company may renew the term of a franchisee upon expiration of the initial term, for an additional ten-year periods. The renewal fee, to be no more than 25% or $10,000 of the then current initial franchise fee, whichever is greater, i
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 39)
What This Means (2025 FDD)
According to the 2025 FDD, a Pearce Bespoke franchisee can renew their franchise agreement under certain conditions. The initial franchise agreement lasts for ten years. Upon expiration of this initial term, Pearce Bespoke may allow the franchisee to renew for additional ten-year periods, provided certain requirements are met.
To renew the franchise agreement, the franchisee must pay a renewal fee. This fee will not exceed the greater of 25% of the then-current initial franchise fee or $10,000. This renewal fee is non-refundable and is considered payment for the rights granted in the renewed franchise agreement.
It is important for prospective Pearce Bespoke franchisees to understand the specific requisites for renewal. These requisites are not detailed in this excerpt but are determined by Pearce Bespoke. Franchisees should inquire about these conditions to ensure they can meet them and secure a renewal of their franchise agreement.