Is the Black Bear Diner franchise granted under the agreement exclusive?
Black_Bear_Diner Franchise · 2025 FDDAnswer from 2025 FDD Document
ally modify Attachment A and the specific address of that location will automatically become the Approved Location as if originally set forth in Attachment A.
2.4 Protected Area
Subject to the provisions of this Agreement, including Section 2.5 below, Franchisor will not operate or license others to operate a Black Bear Diner restaurant within a three (3) mile radius from the Approved Location, otherwise known as the "Protected Area."
2.5 Franchisor's Reservation of Rights
Notwithstanding Section 2.4 above, Franchisee acknowledges that the Franchise granted under this Agreement is non-exclusive and Franchisor expressly retains all rights and discretion with respect to the Marks and System, including the right to: (1) own, acquire, establish and operate, and to license others to establish and operate, Black Bear Diner restaurants at any location outside of the Protected Area; (2) own, acquire, establish and operate, and license others to establish and operate, other businesses including similar restaurant concepts, using other trademarks, service marks and commercial symbols at any location either within or outside of the Protected Area;
Source: Item 23 — RECEIPT (FDD pages 56–243)
What This Means (2025 FDD)
According to the 2025 Black Bear Diner Franchise Disclosure Document, the franchise granted is non-exclusive. While franchisees are given a "Protected Area", Black Bear Diner retains significant rights. The "Protected Area" is defined as a three (3) mile radius from the Approved Location.
Black Bear Diner retains the right to operate or license others to operate Black Bear Diner restaurants outside of the Protected Area. They can also operate other businesses, including similar restaurant concepts, under different trademarks, both within and outside the Protected Area. This means that while a franchisee has a small area of protection, Black Bear Diner can still establish competing businesses nearby.
Furthermore, Black Bear Diner retains the right to sell or distribute products authorized for use and resale at the franchised restaurant through alternative channels, such as grocery stores, convenience stores, mail order, and internet sales. This includes customers located within or outside the Protected Area. This broad reservation of rights means that Black Bear Diner can compete with its own franchisees through various channels, potentially impacting the franchisee's revenue. The franchisee acknowledges that the franchise is non-exclusive and that Black Bear Diner retains all rights and discretion with respect to the Marks and System.