Where must a Black Bear Diner franchisee operate their restaurant?
Black_Bear_Diner Franchise · 2025 FDDAnswer from 2025 FDD Document
="page-34-0">Franchise Agreement
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.
Under the terms of the Franchise Agreement, we will grant you a geographic area known as a "Protected Area". If you comply with the Franchise Agreement, we will not operate or license others to operate a Black Bear Diner restaurant from a location within the Protected Territory during the term of the Franchise Agreement. A description of the Protected Territory is included as an exhibit to the Franchise Agreement. The perimeter of the Protected Territory may be described by street boundaries, county lines, state lines, municipal boundaries or other similar boundary descriptions. For the typical Franchised Restaurant, the Protected Territory will encompass an approximate 3-mile radius around the Franchised Restaurant.
As part of the rights reserved by us in the Franchise Agreement, we may (1) establish and operate, and license others to establish and operate, Black Bear Diner restaurants at any location outside of the Protected Area; (2) 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 and outside of the Protected Area;
Source: Item 12 — TERRITORY (FDD pages 35–37)
What This Means (2025 FDD)
According to Black Bear Diner's 2025 Franchise Disclosure Document, a franchisee must operate their restaurant solely at the approved restaurant premises. The FDD specifies that franchisees cannot sell products for resale to other businesses, nor can they sell products at, from, or through any other location or distribution channel, including online sales, catalogs, telemarketing, or other direct marketing methods.
The Franchise Agreement grants the franchisee the right to develop and operate a Black Bear Diner restaurant at a specific location, which must first be approved by Black Bear Diner. Relocating the restaurant is not permitted without prior written consent from Black Bear Diner. However, if the lease expires or terminates without fault of the franchisee, or if the premises become unusable due to destruction or condemnation, Black Bear Diner will allow the franchisee to relocate to a new site that is acceptable to them.
It's important to note that any relocation will be at the franchisee's sole expense, including reimbursing Black Bear Diner for all reasonable costs and expenses incurred in evaluating, approving, and implementing the relocation. The franchisee must also indemnify Black Bear Diner against any loss, liability, costs, and expenses related to the relocation process. This means that while relocation is possible under certain circumstances, it is subject to Black Bear Diner's approval and comes with significant financial responsibilities for the franchisee.