factual

What is a Black Bear Diner franchisee required to do to ensure compliance with applicable laws and regulations?

Black_Bear_Diner Franchise · 2025 FDD

Answer from 2025 FDD Document

To operate the Black Bear Diner restaurant, you will need to determine and understand the laws that apply in your geographic area and then implement compliance procedures, as needed, to ensure your Black Bear Diner restaurant's full compliance with applicable laws and regulations.

Many of the laws that apply to business generally, like the Americans with Disabilities Act, federal wage and hour laws, and the Occupation, Health and Safety Act, also apply to restaurants and other retail foodservice establishments.

Your development and operation of the Black Bear Diner restaurant will also be subject to compliance with applicable zoning, land use and environmental regulations as well as federal and state minimum wage laws governing such matters as working conditions, overtime and tip credits and other employee matters. It is likely that a significant number of your Black Bear Diner restaurant's food service and preparation personnel will be paid at rates related to the federal minimum wage and, accordingly, further increases in the federal, state or local minimum wage will affect your labor costs.

The federal Clean Air Act and various implementing state laws require certain state and local areas to meet national air quality standards that limit emissions of ozone, carbon monoxide and particulate matters, including emissions from commercial food preparation. Some areas have also adopted or are considering proposals that would regulate indoor air quality.

We recommend that you check with your state and local agencies to determine which laws apply to the operation of a Black Bear Diner restaurant in your area. You should consider these laws and regulations when evaluating your purchase of a franchise.

ITEM 2 BUSINESS EXPERIENCE

Executive Chairman of Board of Managers: Bruce Dean

Mr. Dean has served as our Chairman of Board of Managers since January 2020. Prior to that, Mr. Dean served as our Chief Executive Officer from February 2016 until January 2020 and as President and Chief Executive Officer from February 2016 until March 2019. From 2001 until February 2016, Mr. Dean served in numerous positions with BBD INC including President, Co-President and Vice President. In addition, Mr. Dean has served as Chairman of the Board of Managers for BBD HOLDCO since February 2016.

Chief Executive Officer: Anita K. Adams

Ms. Adams has served as our Chief Executive Officer since January 2020. Prior to that, she served as our President and Chief Financial Officer from March 2019 until January 2020 and as our Chief Financial Officer from March 2017 until March 2019.

Chief Operating Officer: Art Kilmer

Mr. Kilmer has served as our Chief Operating Officer since August of 2024. Prior to that from November 2017 until March of 2024 , he served as the Chief Operating Officer of P.F.Chang's China Bistro of Scottsdale AZ.

Chief Financial Officer: Steve Sparks

Mr. Sparks has served as our Chief Financial Officer since September 2019. From June 2019 until September 2019, he was considering career options. Before that from May 2012 until June 2019, Mr. Sparks held several positions with ABRH, LLC located in Nashville, Tennessee including Chief Financial Officer (September 2017 until June 2019); VP, Finance (November 2015 until September 2017) and Sr. Director, Financial Planning & Analysis (May 2012 until November 2015).

VP of Franchise Sales and Development: Chad Corrigan

Mr. Corrigan has served as our VP of Franchise Sales and Development since May 2021. From May 2019 through April 2021, he served as VP of Real Estate and Franchise Development for Restaurant Growth Services, LLC in Nashville, Tennessee. From September 2016 until May 2019, he was Director, Franchise Sales and Real Estate for American Blue Ribbon Holdings LLC in Denver, Colorado.

VP of Marketing & Communications: Jolisa R. Johnson

Ms. Johnson has served as our VP of Marketing & Communications since January 2018. From November 2011 through December 2017, she was our Director of Marketing.

VP of Training & Development: Camille Chavez

Ms. Chavez has served as VP of Training & Development since October 2019. From January 2008 through September 2019, Ms. Chavez served as Director of Training for Farmer Boys Foods, Inc in Riverside, California.

Other Individuals With Management Responsibility

In addition to our officers, the following individuals have management responsibility relating to the sale or operation of franchises offered by this disclosure document:

Robert P. Manley

Mr. Manley has served as a member of the Board of Managers of BBD HOLDCO since February 2016. Previously from 2001 until January 2016, Mr. Manley was a Director and the Chairman of the Board of Directors with BBD INC and also served as its President and Co-President.

Gilbert L. ("Chip") Baird III

Mr. Baird has served as a member of the Board of Managers of BBD HOLDCO since February 2016. In June 2020, Mr. Baird Co-Founded and has since been a Managing Partner at GreyLion Capital LP (a middle market private equity firm spun out of Perella Weinberg Partners) based in New York, New York.

Source: Item 1 — THE FRANCHISOR, AND ANY PARENTS, PREDECESSORS AND AFFILIATES (FDD pages 8–11)

What This Means (2025 FDD)

According to the 2025 Black Bear Diner Franchise Disclosure Document, franchisees must determine and understand the laws applicable to their geographic area and implement compliance procedures to ensure the restaurant's full compliance with all applicable laws and regulations. These laws include those that apply to businesses generally, such as the Americans with Disabilities Act, federal wage and hour laws, and the Occupation, Health and Safety Act. Franchisees must also comply with zoning, land use, and environmental regulations, as well as federal and state minimum wage laws.

The restaurant and foodservice industry is heavily regulated by federal, state, and local governments. Black Bear Diner franchisees must comply with the Affordable Care Act of 2010 and the FDA's menu labeling rule, which requires covered retail foodservice establishments (chains of 20 or more units) to disclose nutritional information on menus and online ordering platforms. Other relevant laws include food safety, health and sanitation, liquor license, and dram shop laws (if alcohol is served). Many states and municipalities require specific licensure or training in sanitation and safety laws.

Franchisees may also need to obtain a liquor license, and they must understand and comply with state and local laws regarding liquor sales and potential liability. Some cities have enacted laws imposing burdens on restaurants serving foods high in sugar and/or salt, such as taxes on sugar-sweetened beverages or warnings for high-sodium menu items. Additionally, some states and cities require restaurants to provide information to consumers about food allergens and regulate foodware and foodservice packaging items, including bans on plastic straws and restrictions on certain types of Styrofoam and plastic. Some restaurants will be required to keep certain key data elements when such restaurants receive food that is on the FDA's food traceability list. If a restaurant must keep such key data elements, it must keep the specific data required by FDA and must be able to make such information available to FDA via an electronic sortable spreadsheet.

Given the complexity and variability of these regulations, Black Bear Diner recommends that franchisees check with state and local agencies to determine which laws apply to their specific location. Franchisees should consider these laws and regulations when evaluating the purchase of a franchise to ensure they can meet all requirements and avoid potential penalties.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.