What happens if a Black Bear Diner franchisee purchases from a non-approved supplier?
Black_Bear_Diner Franchise · 2025 FDDAnswer from 2025 FDD Document
We do not provide or withhold material benefits to you (such as renewal rights or the right to open additional Franchised Restaurants) based upon whether you purchase through the sources we designate or approve; however, purchases of unapproved products or from unapproved suppliers in violation of the Franchise Agreement will entitle us, among other things, to terminate the Franchise Agreement. You must allow us or our representative to conduct inspections on at least a monthly basis. These inspections may be conducted at any time and you must immediately take the actions needed to correct any deficiencies during the inspection. We currently have no purchasing or distribution cooperatives. There is currently no supplier in which any of our officers owns an interest.
If we designate one or more exclusive suppliers for a particular good or service, you may not request to utilize an alternative supplier. However, if an exclusive supplier has not been designated and you desire to use any item, service or supplier in operating the Franchised Restaurant that we have not approved (for items or services that must meet our specifications or require supplier approval), you will first send us sufficient information, specifications and/or samples for us to determine whether the item or service complies with our standards and specifications or the supplier meets our criteria. We may charge a reasonable fee for inspection and/or testing, not to exceed $1,000, and will decide within a reasonable time, typically 30 days, after receiving all requested information whether any proposed item or service meets our specifications or if you may purchase or lease items or services from a proposed supplier. We apply the following general criteria in approving a proposed supplier: ability to provide sufficient quantity of product; quality of products and/or services at competitive prices; production and delivery capability; dependability and general reputation of the supplier and willingness to pay us a fee to join our key vendor network. In addition, suppliers of food products must meet our standards for testing and auditing to assure quality, safety and nutrition. We will notify you in writing of our decision regarding the approval or disapproval of any supplier or item or service. In addition, we will notify you in writing of our revocation of approval of any supplier, or of any item or service no longer meeting our specifications. You may be required to sign contracts with third party suppliers in the form they specify.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 22–26)
What This Means (2025 FDD)
According to Black Bear Diner's 2025 Franchise Disclosure Document, franchisees are required to purchase goods and services from approved suppliers. If a franchisee violates the Franchise Agreement by purchasing from unapproved sources, Black Bear Diner is entitled to terminate the Franchise Agreement, among other potential actions.
Black Bear Diner does not provide or withhold material benefits, such as renewal rights or the right to open additional franchises, based on whether a franchisee uses approved suppliers. However, the FDD emphasizes the importance of adhering to the approved supplier list to maintain quality and uniformity within the Black Bear Diner system.
If a franchisee wishes to use a non-approved supplier or item, they must submit sufficient information, specifications, and/or samples to Black Bear Diner for approval. Black Bear Diner may charge a fee for inspection and testing, up to $1,000, and will typically decide within 30 days whether the proposed item or service meets their standards or if the supplier is acceptable. The criteria for supplier approval include the ability to provide sufficient quantities, quality of products at competitive prices, production and delivery capability, dependability, general reputation, and willingness to pay a fee to join Black Bear Diner's key vendor network. Food product suppliers must also meet standards for testing and auditing to ensure quality, safety, and nutrition.