What aspects of sales and marketing does Black Bear Diner control for its franchises?
Black_Bear_Diner Franchise · 2025 FDDAnswer from 2025 FDD Document
have no claim against Franchisor on account of any variation from System standards granted to any franchisee and shall not be entitled to require Franchisor to disclose or grant to Franchisee a like or similar variation hereunder.
11. MARKETING AND PROMOTIONAL ACTIVITIES
Recognizing the value of advertising and the importance of the standardization of advertising and promotion to the furtherance of the goodwill and the public image of the Black Bear Diner franchise system and Marks, Franchisee agrees as follows:
11.1 Local Advertising
Each month, Franchisee agrees to spend not less than one percent (1%) of its previous month's Gross Sales on Local Advertising including local marketing, advertising, promotions and public relations activities. Such expenditures shall be made directly by Franchisee. Within thirty (30) days of the end of each month, Franchisee shall furnish to Franchisor an accounting in a form as designated by Franchisor of the expenditures for the preceding month.
Franchisee shall submit to Franchisor, for its prior approval, all advertising and promotional materials to be used by Franchisee including, but not limited to signs, television advertisements, radio spots, coupons, leaflets, flyers, local newspaper, magazine, menu inserts, table cards, direct mail or other print advertising, social media, contests, sports sponsorships and . Franchisor shall use reasonable efforts to provide notice of approval or disapproval within twenty
(20) days from the date all requested material is received by Franchisor. In the event written approval is not received by Franchisee within twenty (20) days of receipt, Franchisor shall be deemed to have not given the required approval. Franchisor reserves the right to disapprove any advertising and promotional materials even if prior approval has been granted.
11.2 Systemwide Marketing Fund
Franchisor has established and administers the Black Bear Diner Systemwide Marketing Fund (the "Marketing Fund"). Currently, Franchisee is required to make a weekly contribution of one percent (1%) of its Gross Sales to the Marketing Fund ("Marketing Fund Contribution"). Franchisor reserves the right increase the amount of the Marketing Fund Contribution but will not increase the amount of the Marketing Fund Contribution to more than 3% of Gross Sales per week and will provide Franchisee with at least thirty (30) days written notice prior to increasing the amount of the Marketing Fund Contribution. Franchisee's Marketing Fund Contribution shall be made at the same time and in the same manner as its Royalty Fee payment. The Marketing Fund shall be maintained and administered by Franchisor or its designee as follows:
Franchisor shall generally oversee all advertising programs with sole discretion over the creative concepts, materials and media used in such programs and the placement and allocation thereof.
Source: Item 23 — RECEIPT (FDD pages 56–243)
What This Means (2025 FDD)
According to the 2025 Black Bear Diner Franchise Disclosure Document, Black Bear Diner maintains control over the standardization of advertising and promotion to support the goodwill and public image of the Black Bear Diner franchise system. However, franchisees are responsible for local advertising efforts.
Each Black Bear Diner franchisee must spend at least one percent of the previous month's gross sales on local advertising, encompassing marketing, promotions, and public relations. Franchisees directly manage these expenditures and must provide an accounting of these expenses to Black Bear Diner within 30 days after each month's end, using a format designated by the franchisor.
Black Bear Diner also uses a Marketing Fund, where franchisee contributions can be used for various advertising costs, including television, radio, internet, billboard, magazine, and newspaper campaigns, as well as public relations activities and promotional materials. The Marketing Fund is maintained separately from Black Bear Diner's general funds and is used to offset advertising and promotional costs. Black Bear Diner also has the right to terminate the Marketing Fund, but only after all monies have been expended for advertising and promotional purposes or returned to franchisees on a pro rata basis. An annual accounting of the Marketing Fund is prepared and made available to franchisees upon request.