Under what conditions might Pearce Bespoke offer a Development Agreement?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
Pearce Bespoke If we determine that you are financially and operationally qualified to develop multiple Franchises, we may offer you the opportunity to enter into a Development Agreement, in which you will commit to develop a certain number of Franchises that we determine to be appropriate. We have the right to determine the number of Franchises that we deem as appropriate in our sole and absolute discretion, based upon several factors, such as but not limited to, territory availability, your business acumen, your financial wherewithal, your ability to fund or obtain funding for your Franchise, and your overall business and operational experience. If you enter into a Development Agreement, you must pay us a one- time development fee
Source: Item 5 — INITIAL FEES (FDD pages 9–11)
What This Means (2025 FDD)
According to Pearce Bespoke's 2025 Franchise Disclosure Document, a Development Agreement may be offered if Pearce Bespoke determines that a prospective franchisee is financially and operationally qualified to develop multiple franchises. The number of franchises granted under the Development Agreement is determined by Pearce Bespoke at their sole discretion. Factors influencing this decision include territory availability, the franchisee's business acumen, financial resources, ability to secure funding, and overall business and operational experience.
If a franchisee enters into a Development Agreement with Pearce Bespoke, they must pay a one-time development fee upon execution of the agreement. The Development Fee depends on the number of franchises the franchisee is granted the right to open within the Development Area. For example, the franchise fee for one franchise is $55,900, while the cumulative development fee for two franchises is $106,800. If the agreement permits opening more than six franchises, the Development Fee equals $260,400, plus $30,900 for each additional franchise.
Franchisees entering a Development Agreement must also execute Pearce Bespoke's current form of Franchise Agreement for the initial franchise they are granted the right to open within the Development Area, concurrently with the Development Agreement. However, they won't be required to pay any additional initial franchise fees when executing individual franchise agreements under the Development Agreement. This structure is common in franchising, allowing experienced and well-funded franchisees to expand the brand's presence more rapidly while reducing some of the upfront costs for each individual location.