Risk Score
Pending analysis
Investment Range
$29,664 - $120,765
Franchise Fee
$25,000
Total US Locations
17
Business Summary
Pearce Bespoke operates mobile units from which franchisees sell high-quality custom men's and women's clothing and accessories. The business emphasizes providing consumer value by offering custom merchandise at substantial savings and convenience compared to traditional custom tailors.
Corporate History
Pearce Bespoke Franchising, LLC was incorporated in North Carolina on November 5, 2021, and began offering franchises in February 2022. The company does not have a parent, subsidiary, or predecessor. It does have an affiliate, Nathan Pearce, LLC d/b/a Pearce Bespoke, which was formed on October 3, 2019, and has been operating a business similar to the one offered since September 2022 in Baton Rouge, Louisiana.
Financial Overview
Investment Range
$29,664 - $120,765
Franchise Fee (Low)
$25,000
Franchise Fee (High)
$49,500
Royalty %
10%
Marketing %
2%
Equipment Costs (Low)
$1,000
Equipment Costs (High)
$45,900
Working Capital
$10,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Pearce Bespoke Franchising, LLC has reported significant net losses in both 2022 and 2023, resulting in a substantial members' equity deficiency of $(471,984) as of December 31, 2023. While the company generated positive cash flow from operating activities in 2023, it experienced negative cash flow from operations in 2022. The audited financial statements do not include a 'going concern' qualification, indicating the auditors do not have substantial doubt about the company's ability to continue operations for at least one year.
Financing Details
Pearce Bespoke does not offer any direct or indirect financing to its franchisees. Franchisees will need to secure their own funding, as Pearce Bespoke also does not guarantee any notes, leases, or other obligations.
Performance Metrics
Total US Locations
17
Franchised Units
16
Corporate Units
1
Franchising Since
2022
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
Yes
Litigation Summary
Pearce Bespoke has no litigation that is required to be disclosed in Item 3 of its Franchise Disclosure Document. Therefore, Pearce Bespoke has a clean legal record with no lawsuits or legal disputes to report.
Bankruptcy History
Pearce Bespoke's Chief Executive Officer, Nathan Pearce, personally filed for Chapter 7 bankruptcy on May 3, 2017. The bankruptcy court in the Southern District of Mississippi entered a discharge in October 2017. Other than this personal bankruptcy of its CEO, Pearce Bespoke has no other bankruptcy information to disclose.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
Pearce Bespoke franchisees can renew their franchise agreement for additional 10-year terms if they provide written notice at least 180 days before the agreement ends, comply with all material provisions of the current agreement including brand standards and monetary obligations, make reasonable capital expenditures to remodel, modernize, and redecorate the mobile franchise premises to reflect current standards, pay a renewal fee that is the greater of $10,000 or 25% of the then-current franchise fee, and, at Pearce Bespoke's option, execute the then-current Franchise Agreement (which may have different terms and an altered Protected Territory). Franchisees must also secure a renewal or extension of their lease or a new approved location within their Development Area.
Training & Support Program
Franchisor Assistance
Pearce Bespoke provides pre-opening assistance with site location and leasing issues, layout and design standards, and a list of standard equipment and initial custom inventory. Franchisees receive a mandatory two-part training program covering general business issues, sales, marketing, and management, along with electronic copies of the confidential Operations Manuals and assistance in developing a business plan. Ongoing support includes consultations, periodic evaluations with feedback, electronic updates and revisions to the Manuals, and the development of advertising and marketing materials. All active clothiers are also required to attend an annual certification training, which may be held online or in person.
Initial Training Hours
66
Training Location
Baton Rouge, LA and/or Online
Ongoing Support
Pearce Bespoke provides ongoing consultation as needed, conducts periodic evaluations of the mobile franchise, and offers feedback to assist in operations. The franchisor periodically makes available all changes to the Business System via electronic updates to the Operations Manuals and develops advertising and marketing materials. All active clothiers are also required to attend an Annual Certification Training, which may be held online or in person.
Franchise Requirements
Ideal Candidate Profile
Pearce Bespoke is seeking franchisees who are financially and operationally qualified to develop multiple mobile franchises, possessing business acumen and the ability to fund their operations. Ideal candidates are expected to actively participate in the actual operation and supervision of the mobile franchise, dedicating the necessary time for its efficient operation. While not prohibiting other employment, the operation of the Pearce Bespoke Mobile Franchise must be the franchisee's primary job responsibility. Owners or approved management must also successfully complete the initial training programs.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Mobile
Owner Participation
hands-on
Territory Type
Protected
Staff Count
3
Territory Size Requirements
Pearce Bespoke territories are defined based on computer-modeled mapping that factors in population density and average household income. For mobile franchises located in urban areas, a protected territory will generally have a population of between 50,000 to 200,000 people or a population of no more than 50,000 people, depending on the initial franchise fee paid.
Staffing Notes
Pearce Bespoke franchisees are required to employ a sufficient number of adequately trained and competent employees to provide efficient service, with a designated management person on duty during business hours. Franchisees are solely responsible for hiring, firing, training, setting hours for, and supervising all employees. A typical territory is expected to operate with approximately three clothiers.