Pearce Bespoke

The royalty rate of 10.0% is substantially higher than the typical range for retail franchises (4.4-6.0%). What justifies this rate, and is it negotiable based on unit volume or performance?

The franchise fee of $55,900 exceeds the typical retail range by approximately 40%. What is included in this fee, and are there any refundable components if the franchisee does not open within a specified timeframe?

Can you provide documentation explaining why the system shows zero terminations and zero closures over a three-year period while growing from 3 to 51 units? Have any franchises struggled or been placed on remedial plans?

The system grew 157.1% compound annually over three years. What was the selection and vetting process for franchisees during this rapid expansion, and how many franchise applications were rejected?

Given the immediate termination clause with no cure period for 12 types of defaults, can you provide specific examples of defaults that would trigger immediate termination versus the 4 defaults with 30-day cure periods?

The dispute resolution clause mandates binding arbitration in Huntersville, North Carolina with no class action rights. How many arbitration disputes have occurred, what were the outcomes, and what was the average cost to franchisees?

Personal guarantees are required from franchisees and spouses for all financial obligations. What is the typical liability exposure, and are there any circumstances where the franchisor has enforced guarantees against personal assets?

Renewal requires meeting 8 conditions and paying $5,000. Can you provide the complete list of renewal conditions, and what percentage of franchisees have successfully renewed versus been denied renewal?

The agreement specifies gross sales minimums to retain territory. What are these minimum thresholds, what happens if a franchisee falls below them, and how frequently are territories reassigned due to underperformance?

Late payments incur $100 fees plus 18% annual interest. How often do franchisees incur late fees, and what is the most common reason for payment delays?

Territory is protected but not exclusive. Can you explain the practical difference between how encroachment is managed if a territory is protected but not exclusive?

What is the average time to profitability for new Pearce Bespoke franchisees, and what percentage of units reach profitability within 24 months of opening?

Item 19 financial performance data was not provided. Can you supply audited financial statements or case study data showing average unit volumes, profit margins, and operating expenses for established units?

Cross-default provisions apply to any agreement with the franchisor. What other agreements or side letters typically exist beyond the main franchise agreement, and how could issues in one agreement trigger termination of the franchise?

The system has grown to 51 units very rapidly. Are there geographic saturation concerns, and does the franchisor have a policy on minimum distance between franchisees or territorial overlap?

What training and ongoing support are provided given the Support & Training score of 84/100? Can you detail the initial training duration, content, and ongoing support frequency?

The 2-year, 10-mile non-compete is post-termination or post-expiration. If a franchise is terminated for cause, does the 10-mile radius apply regardless of the reason for termination?

Can you provide references from franchisees who have renewed, transferred, or exited the system to validate the zero-closure data and understand the real franchisee experience?