What is the dependency between supplier approval and purchasing for a Black Bear Diner franchise?
Black_Bear_Diner Franchise · 2025 FDDAnswer from 2025 FDD Document
aurant Operation
Purchases and Suppliers. You must buy all food and beverage items including produce and dry goods, ingredients, kitchen and other equipment, furnishings, supplies, materials, paper products, and other items used or offered for sale at the Franchised Restaurant only from suppliers (including manufacturers, distributors, and other sources) that satisfy our then-current standards and specifications; possess adequate quality controls and capacity to supply your needs promptly and reliably; and have received our approval. We reserve the right to approve and/or designate, from time to time, contractors, manufacturers, vendors, distributors, suppliers, producers, terms, and distribution methods for any goods and services, which include insurance, products, equipment, supplies, and materials. You must purchase all goods and services required for the operation of your Black Bear Diner Restaurant from an approved supplier (which may be only one supplier for any given good or service) under the terms and in the manner we designate. If we or our affiliates designate that such goods and/or services are to be purchased through approved third party suppliers, then you must purchase such goods and/or services from such suppliers according to the terms and in the manner which we approve. We may designate only one exclusive supplier for any product and/or service.
If we designate one or more exclusive suppliers for a particular good or service, you may not request to utilize an alternative supplier. However, if an exclusive supplier has not been designated and you desire to use any item, service or supplier in operating the Franchised Restaurant that we have not approved (for items or services that must meet our specifications or require supplier approval), you will first send us sufficient information, specifications and/or samples for us to determine whether the item or service complies with our standards and specifications or the supplier meets our criteria. We may charge a reasonable fee for inspection and/or testing, not to exceed $1,000, and will decide within a reasonable time, typically 30 days, after receiving all requested information whether any proposed item or service meets our specifications or if you may purchase or lease items or services from a proposed supplier. We apply the following general criteria in approving a proposed supplier: ability to provide sufficient quantity of product; quality of products and/or services at competitive prices; production and delivery capability; dependability and general reputation of the supplier and willingness to pay us a fee to join our key vendor network. In addition, suppliers of food products must meet our standards for testing and auditing to assure quality, safety and nutrition. We will notify you in writing of our decision regarding the approval or disapproval of any supplier or item or service. In addition, we will notify you in writing of our revocation of approval of any supplier, or of any item or service no longer meeting our specifications. You may be required to sign contracts with third party suppliers in the form they specify.
Fountain Beverages. We currently maintain purchasing and pricing arrangements for the supply of fountain and packaged beverages including soft drinks, teas, waters, isotonics, energy drinks, juices, juice drinks, dairy-based and coffee-based beverages. Pepsi and Dr. Pepper are the only approved beverage lines for your Franchised Restaurant. You must feature and exclusively purchase your requirements of beverage products from full-line suppliers of Pep
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 22–26)
What This Means (2025 FDD)
According to the 2025 Black Bear Diner Franchise Disclosure Document, franchisees are required to purchase goods and services from approved suppliers. Specifically, all food and beverage items, ingredients, kitchen equipment, furnishings, supplies, materials, and paper products must be purchased from suppliers that meet Black Bear Diner's standards, have adequate quality controls and capacity, and have received approval from Black Bear Diner. This approval process ensures that all products used in the franchise meet the franchisor's standards for quality and consistency. Black Bear Diner retains the right to approve or designate suppliers, contractors, manufacturers, vendors, and distributors for any goods and services.
If a franchisee wishes to use a non-approved supplier, they must submit sufficient information, specifications, and/or samples to Black Bear Diner for evaluation. Black Bear Diner may charge a fee, up to $1,000, for inspection and/or testing to determine if the proposed item or service meets their standards. The decision on whether to approve the supplier or item typically takes 30 days after receiving all requested information. Black Bear Diner's general criteria for approving suppliers include their ability to provide sufficient quantities of product, the quality of products and services at competitive prices, production and delivery capability, dependability, general reputation, and willingness to pay a fee to join their key vendor network. Food product suppliers must also meet standards for testing and auditing to assure quality, safety, and nutrition.
Black Bear Diner will notify franchisees in writing of their decision regarding the approval or disapproval of any supplier, item, or service, as well as any revocation of approval for suppliers or items that no longer meet their specifications. Franchisees may be required to sign contracts with third-party suppliers in the form specified by those suppliers. For certain items, such as fountain beverages, Black Bear Diner maintains purchasing and pricing arrangements, and franchisees must exclusively purchase these products from approved suppliers like Pepsi and Dr. Pepper. While franchisees are not required to purchase products or services directly from Black Bear Diner or its affiliates, some suppliers may pay fees to Black Bear Diner based on their dealings with franchisees, which are used for marketing programs, franchisee events, and services.