What activities are not expressly forbidden by the Black Bear Diner Area Development Agreement?
Black_Bear_Diner Franchise · 2025 FDDAnswer from 2025 FDD Document
Except as specifically limited by the Development Agreement, we retain all rights with respect to Franchised Restaurants, the Marks, and any products and service. As part of the rights reserved by us in the Development Agreement, we may (1) establish and operate, and license others to establish and operate, Black Bear Diner restaurants at any location outside of the Development Area; (2) establish and operate, and license others to establish and operate, other businesses including similar restaurant concepts, using other trademarks, service marks and commercial symbols at any location either within and outside of the Development Area; (3) sell and distribute products authorized for use and resale at the Franchised Restaurant, including the Gift Shop Products, at wholesale and at retail through alternative channels of distribution including, but not limited to, grocery stores, convenience stores, mail order and Internet sales to customers wherever located, including customers that may be located within the Development Area; and (4) engage in any other activities not expressly forbidden by the Area Development Agreement.
Source: Item 12 — TERRITORY (FDD pages 35–37)
What This Means (2025 FDD)
According to the 2025 Black Bear Diner Franchise Disclosure Document, Black Bear Diner retains all rights regarding franchised restaurants, trademarks, and any products and services, except as specifically limited by the Area Development Agreement. This means that Black Bear Diner can engage in any activities that the Area Development Agreement does not explicitly prohibit.
Specifically, Black Bear Diner may establish and operate Black Bear Diner restaurants outside the Development Area, as well as license others to do so. They can also establish and operate other businesses, including similar restaurant concepts using different trademarks, both within and outside the Development Area. Additionally, Black Bear Diner can sell and distribute products authorized for use and resale at the franchised restaurant, including gift shop products, through various channels like grocery stores, convenience stores, mail order, and internet sales, regardless of the customer's location, even within the Development Area.
For a prospective franchisee, this means that while you have the right and obligation to develop Black Bear Diner restaurants within your designated Development Area, Black Bear Diner retains significant control and rights outside of those explicitly granted to you in the Area Development Agreement. You may face competition from other franchisees, outlets owned by Black Bear Diner, or other distribution channels and competitive brands controlled by them. It is important to understand the scope of these reserved rights and how they might impact your business operations and profitability.