What expenses will the Developer have to reimburse to Black Bear Diner for additional on-site evaluations?
Black_Bear_Diner Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor shall furnish to Developer site selection guidelines, including Franchisor's minimum standards for a location for the Black Bear Diner restaurant, and such site selection assistance as Franchisor may deem advisable. In response to Developer's request for site approval, Franchisor shall perform one (1) on-site evaluation of a proposed site for each Black Bear Diner restaurant to be developed hereunder. Franchisor shall perform additional on site evaluations as Franchisor may deem advisable in response to Developer's requests for site approval; provided, however, that Franchisor shall not be required to provide on-site evaluation for any proposed site(s) in addition to Franchisee's first proposed site for each Black Bear Diner restaurant. If additional on-site evaluation is deemed necessary and appropriate by Franchisor (on its own initiative or at Franchisee's request) for any Black Bear Diner restaurant to be established, Developer shall reimburse Franchisor for all reasonable expenses incurred by Franchisor in connection with such on-site evaluation visit(s), including, without limitation, the cost of travel, lodging and meals.
Source: Item 23 — RECEIPT (FDD pages 56–243)
What This Means (2025 FDD)
According to the 2025 Black Bear Diner Franchise Disclosure Document, as a developer, you are entitled to one on-site evaluation from Black Bear Diner for each restaurant you plan to develop under the Development Agreement. This initial evaluation is covered by Black Bear Diner. However, if Black Bear Diner deems additional on-site evaluations necessary, either at its own discretion or at your request, you, as the developer, will be responsible for reimbursing Black Bear Diner for the expenses incurred during these additional visits.
The expenses that you, the developer, would need to reimburse Black Bear Diner for include all reasonable costs associated with the on-site evaluation. Specifically, these costs encompass travel, lodging, and meals for the Black Bear Diner personnel conducting the evaluation. It is important to note that the obligation to reimburse these expenses only arises if the additional on-site evaluations are deemed necessary by Black Bear Diner beyond the initial evaluation provided for each restaurant.
This policy ensures that Black Bear Diner covers the initial site assessment costs, while the developer bears the financial responsibility for subsequent evaluations. This arrangement is fairly standard in the franchise industry, where franchisors often provide initial support but pass on the costs of additional, more in-depth assistance to the franchisee or developer. Therefore, as a prospective Black Bear Diner developer, it is crucial to carefully consider your site selection and due diligence to minimize the need for multiple on-site evaluations and control associated costs.