To what extent are transfer fees collectable for a Black Bear Diner franchise transfer?
Black_Bear_Diner Franchise · 2025 FDDAnswer from 2025 FDD Document
365 days after Franchisor has approved the site for the Franchised Restaurant, Franchisor has the right to terminate the Franchise Agreement immediately on notice without any need for a cure opportunity.
5.6 Relocation
Franchisee may, with the prior written approval of the Franchisor, relocate the Approved Location if the proposed new location does not compete with any Black Bear Diner restaurant operated by Franchisor or any other Black Bear Diner franchisee and the proposed new location is within the Franchisee's Protected Area. The new location of the Franchised Restaurant, including the real estate and the building, must comply with all applicable provisions of this Agreement and with the Franchisor's then-cur
Source: Item 23 — RECEIPT (FDD pages 56–243)
What This Means (2025 FDD)
According to the 2025 Black Bear Diner Franchise Disclosure Document, the franchisee may be responsible for paying a $5,000 relocation fee to the franchisor if they relocate their restaurant. This fee is due within 10 days of receiving written approval from Black Bear Diner to relocate the restaurant.
This fee is specifically for relocation, not for transferring the franchise to a new owner. The document outlines the conditions under which a franchisee can relocate, emphasizing that the new location must not compete with existing Black Bear Diner restaurants and must comply with the brand's current image and specifications.
While the excerpt details a relocation fee, it does not provide information regarding fees associated with transferring the franchise to a new owner. A prospective franchisee should inquire directly with Black Bear Diner about the specific transfer fees and conditions involved in selling or transferring their franchise to another party.