Is it the Black Bear Diner franchisee's responsibility to be aware of all laws applicable to the restaurant?
Black_Bear_Diner Franchise · 2025 FDDAnswer from 2025 FDD Document
You must operate your Franchised Restaurant in strict conformity with all applicable federal, state, and local laws, ordinances and regulations. These laws, ordinances and regulations vary from jurisdiction to jurisdiction and are amendable and may be implemented or interpreted in different manners over time. It is solely your responsibility to apprise yourself of the existence and requirements of all laws, ordinances and regulations applicable to your Franchised Restaurant and to adhere to them and to the then-current implementation or interpretation of them.
Franchisee shall secure and maintain in force all required licenses, permits and certificates relating to the operation of the Franchised Restaurant and shall operate its Franchised Restaurant in full compliance with all applicable federal, state, city, local and municipal laws, statutes, ordinances, rules and regulations.
Franchisee shall notify Franchisor in writing within five (5) days of the commencement of any legal action or any order, writ, injunction, award or decree of any court, agency or other governmental authority, including a failed health inspection report, which may adversely affect the operation or financial condition of the Franchised Restaurant.
The restaurant and foodservice industry is heavily regulated in the United States by federal, state, and local governments.
The Affordable Care Act of 2010 and regulations issued by the U.S. Food and Drug Administration (the so-called "menu labeling rule") require covered retail foodservice establishments, including those that are part of a chain of 20 or more units, to disclose to consumers, on menu boards, online ordering platforms, and otherwise, certain nutritional information regarding menu items.
Other laws have particular applicability to restaurants and other retail foodservice establishments, including food safety and health and sanitation laws and liquor license laws, liquor liability, and dram shop laws (if alcoholic beverages are offered or sold on the premises). Many states and municipalities also require specific licensure or training in sanitation and safety laws before permitting a restaurant to serve the public.
Recently, some cities have enacted laws that impose specific burdens targeted on restaurants and other retail foodservice establishments that serve foods or beverages that are high in sugar and/or salt. Such cities may require restaurants operating in their jurisdiction to pay additional taxes on the sale of sugar sweetened beverages and/or may require restaurants or other retail foodservice establishments to warn consumers of high-sodium menu items.
Some states and cities also require that restaurants and other retail food establishments provide information to consumers about food allergens.
You are responsible for developing the Franchised Restaurant in compliance with our system and ensuring that all plans and specifications comply with our requirements, applicable laws, and lease requirements.
Make a representative available to advise and offer general guidance to you by telephone, electronic mail, facsimile, newsletters and other methods based on our and our franchisees' experience in operating other Black Bear Diner restaurants.
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD pages 40–41)
What This Means (2025 FDD)
According to Black Bear Diner's 2025 Franchise Disclosure Document, it is the franchisee's sole responsibility to be aware of and adhere to all applicable federal, state, and local laws, ordinances, and regulations pertaining to the operation of their franchised restaurant. These laws can vary significantly between jurisdictions and may change over time, requiring franchisees to stay informed of the most current implementations and interpretations. This includes, but is not limited to, compliance with zoning, land use, environmental regulations, and federal and state minimum wage laws.
Black Bear Diner franchisees must secure and maintain all required licenses, permits, and certificates necessary for operating the restaurant and must operate in full compliance with all applicable laws. The brand recommends that franchisees check with state and local agencies to determine which specific laws apply to their restaurant's operation in their area. Franchisees are also required to notify Black Bear Diner in writing within five days of the commencement of any legal action, order, writ, injunction, award, or decree from any court, agency, or governmental authority, including failed health inspection reports, that may adversely affect the operation or financial condition of the restaurant.
Furthermore, the restaurant and foodservice industry is heavily regulated, with laws like the Affordable Care Act and FDA menu labeling rules requiring specific nutritional information disclosures. Other relevant laws include those pertaining to food safety, health and sanitation, liquor licenses, and potential liabilities related to alcohol sales. Some cities have also enacted laws imposing specific burdens on restaurants that serve foods or beverages high in sugar and/or salt, such as additional taxes or mandatory warnings on high-sodium menu items. Some states and cities also require that restaurants and other retail food establishments provide information to consumers about food allergens.
In addition, franchisees are responsible for ensuring that the restaurant build-out complies with all applicable laws, including the Americans with Disabilities Act. While Black Bear Diner provides standard specifications and layouts, franchisees must hire an architect to prepare plans and certify compliance with all codes. The brand may offer general guidance and assistance through various channels, including telephone, electronic mail, and field representatives, but the ultimate responsibility for legal compliance rests with the franchisee. Franchisees must also adhere to good business practices, maintaining high standards of honesty, fair dealing, and ethical conduct in all interactions with customers, suppliers, and the general public.