Are Black Bear Diner franchisee partners required to sign nondisclosure agreements?
Black_Bear_Diner Franchise · 2025 FDDAnswer from 2025 FDD Document
edged to be Franchisor's property);
- (h) assign to Franchisor, at Franchisor's option, all telephone numbers (and associated listings) for the Franchised Restaurant; and
(i) comply with all other applicable provisions of this Agreement including the noncompete provisions.
17. FRANCHISEE'S COVENANTS NOT TO COMPETE
17.1 During Term
Franchisee specifically acknowledges that pursuant to this Agreement, Franchisee will receive valuable training and Confidential Information of Franchisor and the System. Accordingly, Franchisee and the Personal Guarantors will not, during the term of this Agreement, on their own account or as an employee, agent, consultant, affiliate, licensee, partner, officer, director, or shareholder of any other person, firm, entity, partnership or corporation, own, operate, lease, franchise, conduct, engage in, be connected with, have any interest in, or assist any person or entity engaged in any Competitive Business, except with the prior written consent of the Franchisor.
17.2 After Termination
Franchisee and the Personal Guarantors covenant that, except as otherwise approved in writing by Franchisor, neither Franchisee nor the Personal Guarantors will not, for a period of two (2) years after the expiration or termination of this Agreement, regardless of the cause of for termination, either directly or indirectly, for themselves or through, on behalf of or in conjunction with, any person, persons, partnership, corporation, limited liability company or other business entity own an interest in, manage, operate, act as a consultant with respect to the management or operation of any Competitive Business within a radius of twenty-five (25) miles of the Approved Location or within twenty-five (25) miles of any other Black Bear Diner restaurant.
Source: Item 14 — PATENTS, COPYRIGHTS, AND PROPRIETARY INFORMATION (FDD page 39)
What This Means (2025 FDD)
According to the 2025 Black Bear Diner Franchise Disclosure Document, as a Black Bear Diner franchisee, you will receive valuable training and confidential information about the Black Bear Diner system. As such, during the term of the Franchise Agreement, franchisees and their personal guarantors are restricted from engaging in any competitive business. This restriction applies to owning, operating, or being involved with any business that competes with Black Bear Diner, unless they obtain prior written consent from the franchisor.
After the termination or expiration of the Franchise Agreement, the franchisee and personal guarantors are further restricted for a period of two years. During this time, they cannot own, manage, operate, or consult with any competitive business within a 25-mile radius of the approved Black Bear Diner location or any other Black Bear Diner restaurant. This restriction applies regardless of the reason for termination or expiration of the agreement.
These covenants are in place to protect Black Bear Diner's confidential information, system, and market presence. The franchisor aims to ensure a fair opportunity to resell the franchise or develop a new Black Bear Diner restaurant in the area without facing immediate competition from a former franchisee who possesses inside knowledge of the business operations.