Can Pearce Bespoke unreasonably withhold approval of a franchisee's advertising materials?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee will operate the Pearce Bespoke Franchise so that it is clearly identified and advertised as a Pearce Bespoke Franchise. The style, form, and use of the words "Pearce Bespoke" in any advertising, written materials, or supplies must, however, have Franchisor's prior written approval, which approval will not be unreasonably withheld. Franchisee will use the name "Pearce Bespoke" and the other Marks which now or hereafter may form a part of the Business System, on all paper supplies, business cards, letterhead, envelopes, uniforms, advertising materials, signs or other articles in the identical combination and manner as Franchisor may require in writing. Franchisee will comply with all trademarks, trade name, service mark, and copyright notice marking requirements.
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to Pearce Bespoke's 2025 Franchise Disclosure Document, franchisees must obtain written approval from Pearce Bespoke before using any advertising or promotional materials bearing the Pearce Bespoke name or other marks. However, the FDD states that Pearce Bespoke will not unreasonably withhold approval of the style, form, and use of the words "Pearce Bespoke" in any advertising, written materials, or supplies. This clause provides some protection to the franchisee against arbitrary denial of advertising materials.
This means that while Pearce Bespoke has the right to ensure brand consistency and quality control over advertising, they cannot unreasonably prevent a franchisee from promoting their business. The approval process is in place to maintain uniformity and protect the brand's image, but Pearce Bespoke is obligated to act reasonably when reviewing franchisee-submitted materials.
It is important for prospective franchisees to understand what constitutes "unreasonable" withholding of approval. Franchisees should seek clarification from Pearce Bespoke regarding the specific criteria and guidelines used to evaluate advertising materials. Documenting the approval process and any feedback received can be crucial in resolving potential disputes. Franchisees should also ensure that their advertising materials comply with Pearce Besoke's brand standards and guidelines to facilitate the approval process.