Does BBDI LLC, the franchisor of Black Bear Diner, operate any Black Bear Diner restaurants directly?
Black_Bear_Diner Franchise · 2025 FDDAnswer from 2025 FDD Document
To simplify the language in this disclosure document "we," "us," or "our" means BBDI LLC, the franchisor. The word "you" means the person to whom we grant the franchise and includes all owners and partners, if franchisee is a corporation, limited liability company, partnership or other entity. Our principal business address is 280 Hemsted Drive, Suite 200, Redding, California 96002. We do business only under our company name, the name "Black Bear Diner" and other trademarks described in Item 13 (the "Marks"). We do not offer and have not previously offered franchises in any other line of business and are not engaged in any other business activities. Except through our affiliate (described below), we do not operate any Black Bear Diner restaurants. As of December 25, 2024, there were 92 franchised Black Bear Diner restaurants in operation. Our agents for service of process are included in Exhibit A to this disclosure document.
Black Bear Diners, Inc. ("BBD INC") may be considered a predecessor for purposes of certain disclosures in this disclosure document. BBD INC was a California corporation formed on December 21, 2001 and maintained its principal business address at 1880 Shasta Street, Redding, California 96001. From May 2002 until February 2016, BBD INC offered franchises for Black Bear Diner restaurants. In February 2016, BBD INC was converted, under California law, to BBDI LLC, a California limited liability company, as part of an overall transaction designed to consolidate affiliated entities, reorganize affiliate-owned restaurants, admit new equity owners and enter into a new credit facility. On February 12, 2016, a Membership Interest Purchase Agreement was entered into in furtherance of this transaction. Upon completion of the transaction, BBD Opco LLC ("BBD OPCO") became the sole member of BBDI LLC.
Source: Item 1 — THE FRANCHISOR, AND ANY PARENTS, PREDECESSORS AND AFFILIATES (FDD pages 8–11)
What This Means (2025 FDD)
According to the 2025 Black Bear Diner Franchise Disclosure Document, BBDI LLC, the franchisor, generally does not operate any Black Bear Diner restaurants directly. The FDD specifies that BBDI LLC's principal business address is 280 Hemsted Drive, Suite 200, Redding, California 96002, and it conducts business under the name "Black Bear Diner." As of December 25, 2024, there were 92 franchised Black Bear Diner restaurants in operation.
However, the FDD indicates an exception: Black Bear Diner operates restaurants through an affiliate. Specifically, Bear Tracks Holdings LLC, an affiliate of BBDI LLC, owns and operates 65 Black Bear Diner restaurants. These restaurants are similar to the franchises offered to new franchisees.
This arrangement is common in franchising, where the franchisor or its affiliates operate company-owned locations alongside franchised units. This can allow the franchisor to test new menu items, operational procedures, or marketing strategies in a real-world setting before rolling them out to the franchise system. It also allows the franchisor to maintain a direct stake in the brand's success and profitability.
Prospective franchisees should be aware of the presence of company-owned locations and how they might impact their own operations. It would be prudent to inquire about the relationship between the franchisor and its affiliate, including any potential advantages or disadvantages that company-owned locations might have compared to franchised locations.