factual

Is the Black Bear Diner franchisee required to purchase a Carved Bear Package?

Black_Bear_Diner Franchise · 2025 FDD

Answer from 2025 FDD Document

ll, in addition to any other remedies, have the right to obtain an injunction from a court of competent authority prohibiting Franchisee from opening the Franchised Restaurant.

5.4 Décor Package; Carved Bear Package

Franchisee agrees that Franchisor, Franchisee and other Black Bear Diner franchisees will benefit from the maintenance of reasonable standards for appearance and trade dress including prominent display of the Marks and the distinctive black bear trade dress. The Approved Location and the Franchised Restaurant will conform to all specifications for decor, furniture, fixtures, equipment, exterior and interior decorating designs and color schemes established by the Franchisor. The Franchisee will obtain and pay for the decor, furniture, fixtures, equipment, exterior and interior decorating designs and color schemes, inventory and supplies specified by the Manual or otherwise in writing by the Franchisor used by the Franchisee for the operation of its Black Bear Diner restaurant. All decor, furniture, fixtures, equipment, exterior and interior decorating designs and color schemes used in the Franchisee's Black Bear Diner restaurant must be installed and located in accordance with the floor plans approved by the Franchisor, and must conform to the quality standards and uniformity requirements established by the Franchisor. Franchisee agrees to purchase from Franchisor's designated supplier, which may include Franchisor or its affiliates, certain items necessary for the interior decoration of the Franchised Restaurant ("Décor Package") consisting of decorations including framed bear posters, photographs of local historical sites, photographs of local school activities, wallpaper featuring the black bear theme and other related items. A complete list of items included in the Décor Package is included in Exhibit B to this Agreement. In addition, Franchisee agrees to purchase from Franchisor's designated supplier, which may include Franchisor or its affiliates certain wood bear images featuring a rustic hand-carved of bears in various settings ("Carved Bear Package"). A complete list of the items included in the Carved Bear Package is included in Exhibit C to this Agreement.

5.5 Pre-conditions to Opening; Opening Deadline

Franchisee expressly acknowledges and agrees that a pre-condition to opening the Black Bear Diner restaurant shall be the Franchisor's written authorization to open, which authorization shall be given only upon Franchisee's completing, to Franchisor's satisfaction, (i) construction, renovation and remodeling of the Approved Location and Franchised Restaurant and (ii) training as required by Section 8 of this Agreement. In an effort to obtain Franchisor's authorization to open and begin operation of the Franchised Restaurant, Franchisee agrees to notify Franchisor on such

form as Franchisor may prescribe verifying that all pre-opening obligations have been completed in compliance with this Agreement.

Once Franchisor has approved the site for the Franchised Restaurant, Franchisee has 365 days to actually open and begin operating the Franchised Restaurant.

Source: Item 23 — RECEIPT (FDD pages 56–243)

What This Means (2025 FDD)

According to Black Bear Diner's 2025 Franchise Disclosure Document, franchisees are required to purchase a Carved Bear Package. The FDD states that franchisees must purchase from Black Bear Diner's designated supplier, which may include Black Bear Diner or its affiliates, certain wood bear images featuring a rustic hand-carved of bears in various settings, otherwise known as the Carved Bear Package. A complete list of the items included in the Carved Bear Package is included in Exhibit C to the Franchise Agreement.

Black Bear Diner requires the purchase of the Carved Bear Package to maintain reasonable standards for appearance and trade dress, including the prominent display of the Marks and the distinctive black bear trade dress. This ensures uniformity across all Black Bear Diner locations, which is a common practice in franchising to maintain brand consistency and customer recognition.

Franchisees are also required to acquire the Carved Bear Package only from Black Bear Diner, its affiliates, and/or other specified exclusive sources at the prices Black Bear Diner or they decide to charge. Black Bear Diner restricts the sources for the Carved Bear Package in order to protect their trade secrets, assure quality and uniformity, assure a reliable supply of products that meet their standards, achieve better terms of purchase and delivery service and control usage of the Marks by third parties.

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.