Under what conditions can a Pearce Bespoke franchisee renew their franchise term?
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 Pearce Bespoke's 2025 Franchise Disclosure Document, the company may allow a franchisee to renew their franchise term for additional ten-year periods when the initial term expires, assuming certain requirements are met.
To renew the franchise, the franchisee must pay a renewal fee. This fee will not exceed 25% of the then-current initial franchise fee or $10,000, whichever amount is greater. This renewal fee compensates Pearce Bespoke for granting the renewal rights.
It is important for a prospective Pearce Bespoke franchisee to understand the specific conditions and requisites for renewal, as these are not detailed in this excerpt. Further inquiry into the specific conditions for renewal with the franchisor is recommended to fully understand the renewal process.