Must the franchisee indemnify Black Bear Diner against losses related to the relocation process?
Black_Bear_Diner Franchise · 2025 FDDAnswer from 2025 FDD Document
Under the Franchise Agreement, you will be granted the right to develop and operate a Franchised Restaurant at a specific location that first must be approved by us. You may not relocate the Franchised Restaurant without our prior written consent. If, prior to the termination or expiration of the Franchise Agreement, the lease or sublease for your Black Bear Diner restaurant location expires or terminates without your fault, or if the premises are destroyed, condemned or otherwise rendered unusable, we will permit you to relocate your Black Bear Diner restaurant to a new site acceptable to us. Any relocation will be at your sole expense, including reimbursing us for all reasonable costs and expenses that we may incur in connection with evaluating, approving and/or implementing the relocation. You also must indemnify us against all loss, liability, costs and expenses that we may incur in connection with any aspect of the relocation process.
Source: Item 12 — TERRITORY (FDD pages 35–37)
What This Means (2025 FDD)
According to the 2025 Black Bear Diner Franchise Disclosure Document, if a franchisee needs to relocate their Black Bear Diner restaurant, they are responsible for covering all associated expenses. This includes reimbursing Black Bear Diner for any reasonable costs and expenses the company incurs while evaluating, approving, and/or implementing the relocation.
More specifically, the franchisee must indemnify Black Bear Diner against any losses, liabilities, costs, and expenses that Black Bear Diner may incur during any aspect of the relocation process. This means the franchisee is responsible for protecting Black Bear Diner from financial harm related to the relocation.
This requirement is fairly standard in franchising, as franchisors want to ensure they are not financially burdened by a franchisee's relocation. It is important for prospective Black Bear Diner franchisees to carefully consider the potential costs associated with relocation and to factor this into their financial planning. Franchisees should also seek to negotiate favorable lease terms with landlords to minimize the risk of needing to relocate in the first place.