What is Factory Reset?
Factory Reset restores your Pebble to factory setting (ie. it forgets pairings and removes apps and data you have stored on Pebble). Be very careful before you use it, because once Pebble has been reset, it cannot be undone. To restore your Pebble to factory settings, select Settings from the main menu, then choose System, followed by Factory Reset.
When should I use Factory Reset?
You should use Factory Reset whenever you feel like starting fresh with Pebble, or if you are going to re-gift or re-sell it, so that the new owner gets a clean Pebble.
What is the difference between Recovery Mode and Factory Reset?
The difference between the two is seen in your firmware and your apps. In Recovery Mode, your firmware goes back to an earlier version but your settings and apps remain on your watch. Conversely, in Factory Reset, your firmware is not effected at all, but all of the apps, connections, and data saved on your Pebble are removed.