Who bears the costs associated with relocating a Black Bear Diner restaurant?
Black_Bear_Diner Franchise · 2025 FDDAnswer from 2025 FDD Document
Under the Franchise Agreement, you will be granted the right to develop and operate a Franchised Restaurant at a specific location that first must be approved by us. You may not relocate the Franchised Restaurant without our prior written consent. If, prior to the termination or expiration of the Franchise Agreement, the lease or sublease for your Black Bear Diner restaurant location expires or terminates without your fault, or if the premises are destroyed, condemned or otherwise rendered unusable, we will permit you to relocate your Black Bear Diner restaurant to a new site acceptable to us. Any relocation will be at your sole expense, including reimbursing us for all reasonable costs and expenses that we may incur in connection with evaluating, approving and/or implementing the relocation. You also must indemnify us against all loss, liability, costs and expenses that we may incur in connection with any aspect of the relocation process.
Source: Item 12 — TERRITORY (FDD pages 35–37)
What This Means (2025 FDD)
According to Black Bear Diner's 2025 Franchise Disclosure Document, if a franchisee needs to relocate their restaurant, the franchisee bears the costs. Specifically, if the lease expires or terminates without fault, or if the premises are destroyed, condemned, or otherwise rendered unusable, Black Bear Diner will allow the franchisee to relocate to a new, approved site.
However, this relocation comes at the franchisee's sole expense. This includes reimbursing Black Bear Diner for all reasonable costs and expenses the company incurs while evaluating, approving, and/or implementing the relocation. These expenses could include legal fees, consulting fees, travel expenses for site visits, and other related costs.
Furthermore, the franchisee must indemnify Black Bear Diner against all loss, liability, costs, and expenses that the company may incur in connection with any aspect of the relocation process. This means the franchisee is responsible for protecting Black Bear Diner from any potential claims, damages, or expenses that arise during the relocation. This is a standard practice in franchising, as the franchisee typically controls the day-to-day operations and is therefore responsible for managing risks associated with the business, including relocation.