What does the Franchisor's site approval for a Black Bear Diner restaurant indicate?
Black_Bear_Diner Franchise · 2025 FDDAnswer from 2025 FDD Document
Approval by Franchisor of the site indicates only that Franchisor believes the site complies with acceptable minimum criteria established by Franchisor solely for its purposes as of the time of the evaluation.
Both Franchisee and Franchisor acknowledge that application of criteria that may have been effective with respect to other sites and premises may not be predictive of potential for all sites and that, subsequent to approval by Franchisor of a site, demographic and/or economic factors, such as competition from other similar businesses, included in or excluded from criteria used by Franchisor could change, thereby altering the potential of a site.
Such factors are unpredictable and are beyond the control of Franchisor.
Franchisor shall not be responsible for the failure of a site approved by Franchisor to meet Developer's expectations as to revenue or operational criteria.
Developer further acknowledges and agrees that its acceptance of a franchise for the operation of a Black Bear Diner restaurant at a site is based on its own independent investigation of the suitability of the site.
Source: Item 23 — RECEIPT (FDD pages 56–243)
What This Means (2025 FDD)
According to the 2025 Black Bear Diner Franchise Disclosure Document, site approval by the Franchisor does not guarantee the site's suitability or success. The FDD states that approval indicates only that Black Bear Diner believes the site meets its minimum criteria at the time of evaluation. This means that while Black Bear Diner assesses the site based on its standards, this assessment is not a warranty of any kind.
Several factors could change after the site approval that could affect the restaurant's potential. These factors include demographic and economic shifts, such as increased competition. These elements are often unpredictable and beyond Black Bear Diner's control. Therefore, Black Bear Diner is not liable if an approved site fails to meet the franchisee's revenue or operational expectations.
The FDD emphasizes that it is the franchisee's responsibility to conduct their own independent investigation to determine if the site is suitable for a Black Bear Diner restaurant. This includes assessing the local market, understanding potential challenges, and evaluating the site's overall viability. Prospective franchisees should not rely solely on Black Bear Diner's approval but should perform thorough due diligence to ensure the location aligns with their business goals and expectations.