How does Black Bear Diner advise and offer guidance to franchisees during operation?

chise Agreement, Section 8.2)

• 1. Make a representative available to advise and offer general guidance to you by telephone, electronic mail, facsimile, newsletters and other methods based on our and our franchisees' experience in operating other Black Bear Diner restaurants. (Franchise Agreement, Section 8.6).
• 1. Send a field representative to your Franchised Restaurant as we deem necessary for the purpose of providing consultation, assistance and guidance in various aspects of the operation of the Franchised Restaurant. We may prepare written reports in accordance with the Bear Necessities Quality Control Program outlining any suggested changes or modifications in the operation of the your Franchised. (Franchise Agreement, Section 8.6)
• 1. Provide additional training programs and courses to you, your general manager and other employees, which may be optional or mandatory. We reserve the right to charge a tuition fee for optional training programs. Mandatory training programs will be provided to you without tuition charge. You will be required to pay all travel and living expenses incurred by you and your employees while attending training. (Franchise Agreement, Section 8.5)
• 1. At our discretion, conduct and administer a Black Bear Diner Convention for system franchisees. We currently conduct the Convention on an annual basis. (Franchise Agreement, Section 8.5)
• 1. At our discretion, suggest menu item pricing policies to the extent allowed by law. You will determine the prices of the products and services that you offer to guests, except that we may establish maximum rates and prices for marketing and promotions if permitted by law. (Franchise Agreement, Section 8.6)

Site Selection

If you enter into a Development Agreement with us, we will agree on with you and designate your Development Area. Your Development Agreement will have a schedule by which each Franchised Restaurant to be developed must be approved for commencement of operations. Before or after signing a Franchise Agreement, you and we will agree upon an approved location and protected area for your Franchised Restaurant. We do not determine the site for the first or any additional Franchised Restaurants to be developed under the Development Schedule, but you must receive our prior written consent to the development of a proposed site for the location of each of your Franchised Restaurants. We may, but are not obligated to, assist you in site selection, but you are ultimately responsible for selecting the site.

You are responsible for selecting the site for each of your Franchised Restaurants. In many instances franchisees have a proposed site prior to signing the Franchise Agreement. If you do not have a site which meets our criteria then you must select a site within the geographic area designated in the Franchise Agreement. Though you are solely responsible for selecting the site, we will provide site evaluation assistance at your request. The assistance consists of overall evaluation of alternative sites and at your request one site visit. Our prior approval of the site is required. The factors we consider in approving a site include general suitability, traffic pattern, ease of ingress and egress, visibility, availability of parking, proximity of similar business and the

general lease terms. We will approve or disapprove a proposed site within 15 days of receiving all requested information. Our approval of one or more sites is not a representation or a promise by us that a Franchised Restaurant at the approved site will achieve a certain sales volume or a certain level of profitability. If no acceptable site is found by you and approved by us within 60 days after you sign the Franchise Agreement, we have the right to terminate the Franchise Agreement immediately on notice without any need for a cure opportunity. Once we have approved your site for the Franchised Restaurant, you have 365 days to actually open and begin operating your Franchised Restaurant.

Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 28–35)