Where can I find the definition of 'Local Advertising' within the Black Bear Diner Franchise Agreement?
Black_Bear_Diner Franchise · 2025 FDDAnswer from 2025 FDD Document
Each month, Franchisee agrees to spend not less than one percent (1%) of its previous month's Gross Sales on Local Advertising including local marketing, advertising, promotions and public relations activities. Such expenditures shall be made directly by Franchisee. Within thirty (30) days of the end of each month, Franchisee shall furnish to Franchisor an accounting in a form as designated by Franchisor of the expenditures for the preceding month.
Source: Item 23 — RECEIPT (FDD pages 56–243)
What This Means (2025 FDD)
According to the 2025 Black Bear Diner Franchise Disclosure Document, the definition of 'Local Advertising' is found within section 11.1 of the franchise agreement. This section specifies that franchisees must spend at least one percent of the previous month's gross sales on local advertising.
Local advertising, as defined in this section, includes local marketing, advertising, promotions, and public relations activities. These activities are to be managed and paid for directly by the franchisee. This gives the franchisee some control over how the advertising dollars are spent, allowing them to tailor their marketing efforts to the local market conditions and customer base.
Black Bear Diner requires franchisees to provide an accounting of these local advertising expenditures to the franchisor within thirty days of the end of each month. This accounting must be in a format designated by Black Bear Diner, ensuring that the franchisor can track and verify that franchisees are meeting their local advertising obligations. This level of oversight is common in franchising, as it helps maintain brand consistency and ensures that franchisees are actively promoting their businesses within their communities.