Under what conditions will the two-year non-competition period for a Pearce Bespoke franchise be extended?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
year period and the ten (10) mile radius are the reasonable and necessary time and distance needed to protect Franchisor if this Agreement expires or is terminated for any reason.
C. Extension During Breach.
Franchisee (and all Personal Guarantors and owners of all or part of Franchisee) acknowledge and agree that the two (2) year non-competition period set forth in Section 18(B) above will be extended for a period of time equal to the time during which the Franchisee is in breach of any of the provisions of Section 18(B).
D. Injunctive Relief.
Franchisee agrees that damages alone cannot adequately compensate Franchisor if there is a violation of these non-competition covenants, and Franchisee stipulates that Franchisor would be irreparably harmed by such a violation and that preliminary and permanent injunctive relief is essential and must be entered for the protection of Franchisor, and Franchisee hereby agrees to waive any and all defenses to the entry of such injunction(s).
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to the 2025 Pearce Bespoke Franchise Disclosure Document, the standard two-year non-competition period can be extended if the franchisee breaches the non-competition agreement. This extension will last for a duration equivalent to the period during which the franchisee was in violation of the non-competition terms. This means that if a franchisee violates the non-compete for six months, the non-compete period will be extended by six months, resulting in a total non-compete period of two years and six months.
This provision ensures that Pearce Bespoke is protected from unfair competition by former franchisees who might exploit the brand's confidential information or business practices. The non-compete agreement prevents franchisees from engaging in any resale of a mobile business not offered by Pearce Bespoke involving the purchase and/or sale of custom clothing and accessories located within the Franchised territory within a ten (10) mile radius of the thereof or any Pearce Bespoke Franchise.
Pearce Bespoke also has the right to seek injunctive relief in the event of a breach of the non-competition covenants. This means that Pearce Bespoke can obtain a court order to immediately stop the franchisee from engaging in the prohibited activities. The franchisee also agrees to waive any defenses against such an injunction, and Pearce Bespoke is not required to post a bond or security to obtain the injunction. This highlights the seriousness with which Pearce Bespoke views the non-competition agreement and the measures it will take to enforce it.