Who bears the expense of 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 the 2025 Black Bear Diner Franchise Disclosure Document, the franchisee is responsible for all expenses associated with relocating their restaurant. Specifically, if the lease expires or terminates without the franchisee's fault, or if the premises become unusable due to destruction or condemnation, Black Bear Diner will allow the franchisee to relocate to a new, approved site. However, this relocation is at the franchisee's sole expense.
This financial responsibility includes reimbursing Black Bear Diner for all reasonable costs and expenses they incur while evaluating, approving, and implementing the relocation. This means that in addition to the direct costs of moving and setting up the new location, the franchisee must also cover Black Bear Diner's expenses related to the relocation process.
Furthermore, the franchisee must indemnify Black Bear Diner against any loss, liability, costs, and expenses that the franchisor may incur during any aspect of the relocation. This indemnification clause places a significant financial burden on the franchisee, as they are responsible for protecting Black Bear Diner from any potential financial repercussions arising from the relocation.
This arrangement is fairly typical in franchising, where franchisees generally bear the costs of operating and maintaining their specific location. However, the added responsibility of indemnifying Black Bear Diner for any losses related to the relocation is something a prospective franchisee should carefully consider, as it could potentially lead to substantial unforeseen expenses.