Under the Pearce Bespoke Development Agreement, is Pearce Bespoke expressly prohibited from any activities?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
- 4.2 No Other Restriction On Us.
Except as expressly provided in Section 4.1 or any other agreement between the parties, we and our affiliates retain the right, in our sole discretion, to conduct any business activities, under any name, in any geographic area, and at any location, regardless of the proximity to or effect on your Business.
For example, we and our affiliates have the right to:
(a) Establish or license franchises and/or company-owned outlets or other facilities or businesses offering similar or identical products, services, and classes and using the System or elements of the System (i) under the Marks anywhere outside of the Development Area or (ii) under names, symbols, or marks other than the Marks anywhere, including inside and outside of the Development Area;
(b) Sell or offer, or license others to sell or offer, any products or services using the Marks or other marks through any alternative distribution channels, including, without limitation, through e-commerce, in retail stores, via recorded media, via online videos, or via broadcast media, anywhere, including inside and outside of the Development Area;
(c) Advertise, or authorize others to advertise anywhere, using the Marks;
Source: Item 23 — RECEIPTS (FDD pages 39–172)
What This Means (2025 FDD)
According to the 2025 Pearce Bespoke Franchise Disclosure Document, Pearce Bespoke retains the right to conduct business activities under any name, in any geographic area, and at any location, regardless of proximity to the franchisee's business, except as expressly provided in Section 4.1 of the Development Agreement or any other agreement between the parties.
Specifically, Pearce Bespoke is not restricted from establishing or licensing franchises, company-owned outlets, or other businesses offering similar products or services under names, symbols, or marks other than the registered marks, even within the Development Area. They can also sell products or services using the Marks through alternative distribution channels like e-commerce or retail stores, and advertise anywhere using the Marks.
Section 4.1 of the Development Agreement states that Pearce Bespoke will not operate or license anyone other than the franchisee to operate a Mobile Franchise under the Marks and System within the Development Area, provided the franchisee meets the Development Schedule and maintains the minimum required number of open and operating Businesses. This limited restriction is the only explicit prohibition mentioned, allowing Pearce Bespoke considerable freedom in its business activities.