Under what conditions can Pearce Bespoke increase a franchisee's minimum advertising expenditures?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee acknowledges and agrees that as the Pearce Bespoke franchise system continues to expand and mature, it will be necessary to revise Franchisee's advertising obligations. Franchisee therefore agrees that Franchisor may, upon thirty (30) days' written notice, increase Franchisee's minimum advertising expenditures (as described in Section 6(A) (and, if appropriate, Section 6(B)) above) up to a total of six percent (6%) of Franchisee's Gross Sales.
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to the 2025 Pearce Bespoke Franchise Disclosure Document, Pearce Bespoke may increase a franchisee's minimum advertising expenditures under specific conditions. As the Pearce Bespoke franchise system expands and matures, the franchisor may revise a franchisee's advertising obligations.
Specifically, Pearce Bespoke can increase the minimum advertising expenditures upon providing thirty (30) days' written notice to the franchisee. The maximum increase is capped at a total of six percent (6%) of the franchisee's Gross Sales. This increase is related to the advertising expenditures described in Section 6(A) and, if applicable, Section 6(B) of the franchise agreement.
This clause in the franchise agreement allows Pearce Bespoke to adjust advertising requirements as the brand evolves, potentially requiring franchisees to invest more in marketing to maintain competitiveness. Prospective franchisees should factor in the possibility of increased advertising costs when evaluating the financial feasibility of the franchise, understanding that up to 6% of gross sales could be allocated to advertising.