What amount was forfeited by Black Bear Diner developers as of December 25, 2024?
Black_Bear_Diner Franchise · 2025 FDDAnswer from 2025 FDD Document
9.2 Amounts Owed to Franchisor
Developer shall immediately pay to Franchisor upon termination or expiration of the Development Agreement any amounts owed by Developer to Franchisor which are then unpaid plus interest due.
9.3 Confidential Information
Developer agrees that upon termination or expiration of this Agreement, it and all of its employees, agents or other representatives will immediately cease to use and will maintain the absolute confidentiality of any Confidential Information disclosed or otherwise learned or acquired by Developer and will not use such Confidential Information in any business or otherwise. In addition, Developer shall comply with the covenants not to compete contained in Section 10.
10. NON-COMPETITION
10.1 In Term
Developer specifically acknowledges that, pursuant to this Agreement, Developer will receive valuable specialized training and confidential information, including, without limitation, information regarding the operational, sales, promotional, and marketing methods and techniques of Franchisor and the System. Developer covenants that during the term of this Agreement, except as otherwise approved in writing by Franchisor, Developer shall not, either directly or indirectly, for itself, or through, on behalf of, or in conjunction with any person, persons, partnership corporation or entity:
- 10.1.1 Divert or attempt to divert any business or customer of the Black Bear Diner restaurant or of any other Black Bear Diner restaurant to any competitor, by direct or indirect inducement or otherwise, or do or perform, directly or indirectly, any other act injurious or prejudicial to the goodwill associated with Franchisor's Marks and the System.
- 10.1.2 Own, maintain, operate, engage in, or have any interest in any restaurant providing products and services similar to those provided by a Black Bear Diner restaurant.
10.2 Post-Term
Source: Item 23 — RECEIPT (FDD pages 56–243)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, the information about specific amounts forfeited by Black Bear Diner developers as of December 25, 2024, is not available. The document does outline circumstances under which a developer might owe money to the franchisor, such as unpaid amounts plus interest upon termination or expiration of the Development Agreement. However, it does not provide a cumulative figure for forfeitures. The FDD also discusses non-competition agreements and the protection of confidential information, indicating potential areas where developers could be penalized for non-compliance, but without specifying amounts.
Prospective Black Bear Diner developers should be aware that failing to meet the obligations of the Development Agreement can result in financial penalties. These obligations include maintaining confidentiality, adhering to non-competition clauses, and fulfilling payment obligations. The franchisor emphasizes its right to seek injunctive relief and other remedies for breaches of these agreements, suggesting that the potential costs of non-compliance could be significant.
To gain a clearer understanding of the potential financial risks, a prospective franchisee should ask the franchisor for specific details on what constitutes a breach of the Development Agreement, the typical range of financial penalties for such breaches, and any historical data on amounts forfeited by developers in recent years. This information would help in assessing the potential financial exposure and making an informed decision about investing in a Black Bear Diner development franchise.