How is the development schedule for Black Bear Diner restaurants set in the Area Development Agreement?
Black_Bear_Diner Franchise · 2025 FDDAnswer from 2025 FDD Document
If you enter into an Area Development Agreement, you will receive a Development Area within which you will have the rights and obligation to develop one or more Black Bear Diner restaurants. The Development Area will vary in size, depending upon the number of Franchised Restaurants you intend to open, the population density, and the demographics in the area in which you intend to operate. Your Development Agreement will have a schedule by which each Franchised Restaurant to be developed must be approved for commencement of operations. We set the development schedule with you before you sign your Development Agreement. If you fail to meet the development schedule in your Development Agreement, your development rights and
Development Agreement are subject to termination. The responsibility to locate and prepare a sufficient number of suitable sites is solely yours and we have no obligation to approve sites which do not meet our criteria. We do not determine the site for the first or any additional Franchised Restaurants to be developed under the Development Schedule, but you must receive our prior written consent to the development of a proposed site for the location of each of your Franchised Restaurants. So long as you comply with all provisions in the Area Development Agreement and otherwise comply with the provisions of each related Franchise Agreement, we will not establish or license others to establish a Black Bear Diner restaurant within the Development Area. In addition, you maintain your rights to your Development Area even if the population increases.
Source: Item 12 — TERRITORY (FDD pages 35–37)
What This Means (2025 FDD)
According to Black Bear Diner's 2025 Franchise Disclosure Document, the development schedule for restaurants under an Area Development Agreement is determined before the agreement is signed. This schedule outlines when each franchised restaurant must be approved to begin operations. Failing to adhere to this development schedule can lead to the termination of the development rights and the Area Development Agreement.
The responsibility of finding and preparing suitable sites rests solely with the franchisee, and Black Bear Diner is not obligated to approve sites that do not meet their criteria. While Black Bear Diner does not determine the site for the first or any subsequent restaurants, the franchisee must obtain prior written consent from Black Bear Diner for the development of each proposed site.
If the franchisee complies with all provisions in the Area Development Agreement and related Franchise Agreements, Black Bear Diner will not establish or license others to establish a Black Bear Diner restaurant within the Development Area. The franchisee's rights to the Development Area are maintained even if the population increases. However, failure to meet the development schedule dates may result in the termination of territorial exclusivity and the Area Development Agreement.