What direct costs are Black Bear Diner franchisees responsible for in the development, construction, and operation of their restaurants?
Black_Bear_Diner Franchise · 2025 FDDAnswer from 2025 FDD Document
hisee copies of Franchisor's standard plans and specifications for the design and layout of the exterior and interior of a typical Black Bear Diner restaurant including fixtures, equipment, furnishings, décor and signs. Franchisee assumes all cost, liability and expense for the construction, renovation or remodeling at the Approved Location. If any alterations are required to be made to the standard plans and specifications, such alterations
must be approved by Franchisor in writing before any work is begun on the Franchised Restaurant. It shall be Franchisee's responsibility to submit the final plans and layout to the Franchisor for written approval. Nothing in this section shall be construed as an endorsement or guarantee of the conformity of such plans to applicable local, state or federal building or safety codes. Franchisee agrees that it is responsible for the accuracy of all drawings, plans and specifications used for the construction, renovation or remodeling of the Franchised Restaurant.
Franchisee may not begin site preparation or construction prior to receiving written notification from Franchisor that it has approved the plans. All construction, renovation or remodeling must be in accordance with the plans approved by Franchisor and must comply in all respects with applicable laws. The Franchised Restaurant may not open if construction, renovation or remodeling has not been performed in substantial compliance with plans approved by Franchisor. If at any time Franchisor determines (prior to opening date) that Franchisee has not constructed, renovated or remodeled the Franchised Restaurant in accordance with the plans and specifications approved by Franchisor, Franchisor shall, in addition to any other remedies, have the right to obtain an injunction from a court of competent authority prohibiting Franchisee from opening the Franchised Restaurant.
**5.4 Décor Package;
Source: Item 23 — RECEIPT (FDD pages 56–243)
What This Means (2025 FDD)
According to the 2025 Black Bear Diner Franchise Disclosure Document, franchisees bear several direct costs during the development, construction, and operation of their restaurants. Specifically, the franchisee assumes all costs, liability, and expenses for construction, renovation, or remodeling of the approved location. This includes any alterations required to the standard plans and specifications provided by Black Bear Diner, which must be approved in writing by the franchisor. Franchisees are responsible for ensuring the accuracy of all drawings, plans, and specifications used for these activities.
Furthermore, franchisees are responsible for expenses related to training. Franchisee Managers (the Franchisee owner and General Manager) must attend an initial training program. All expenses incurred by Franchisee Managers in attending such program including, but not limited to, travel costs, room and board expenses and salaries, are the sole responsibility of the franchisee.
In addition to construction and training costs, franchisees must cover expenses for site evaluations under certain conditions. While Black Bear Diner provides an initial on-site evaluation of a proposed site, if additional evaluations are deemed necessary by the franchisor (either on their own initiative or at the franchisee's request) for any Black Bear Diner restaurant, the franchisee must reimburse Black Bear Diner for all reasonable expenses incurred, including travel, lodging, and meals. Franchisees are also required to pay a Relocation Fee of $5,000 to Black Bear Diner if they relocate their Approved Location after receiving written approval from the franchisor.
Franchisees also contribute to the Marketing Fund. Each Black Bear Diner restaurant contributes to the Marketing Fund, and these contributions are used for consumer advertising and promotional activities. While the funds are maintained separately from Black Bear Diner's general operating expenses, franchisees acknowledge that the Marketing Fund is not a trust and Black Bear Diner assumes no fiduciary duty in administering it.