What happens to upfront deposits for a new Black Bear Diner restaurant opening?

Franchisee is required and agrees to spend no less than FIVE THOUSAND FIVE HUNDRED DOLLARS ($5,500.00) sometime within one (1) week prior and eight (8) weeks following the opening of its Franchised Restaurant ("Grand Opening Advertising"). In addition, you must perform opening advertising as required by this paragraph every time that Franchisee relocates the Franchised Restaurant. All materials used on Grand Opening Advertising shall be subject to Franchisor's approval prior to its use. The Grand Opening Advertising shall be in addition to the Marketing Fund Contribution as required in Section 11.2; however, Franchisee shall receive a credit towards its Local Advertising requirement under Section 11.1.

Franchisee may, with the prior written approval of the Franchisor, relocate the Approved Location if the proposed new location does not compete with any Black Bear Diner restaurant operated by Franchisor or any other Black Bear Diner franchisee and the proposed new location is within the Franchisee's Protected Area. The new location of the Franchised Restaurant, including the real estate and the building, must comply with all applicable provisions of this Agreement and with the Franchisor's then-current image, decor and specifications. Within 10 days after receipt by the Franchisee of the Franchisor's written approval to relocate the Approved Location, the Franchisee will pay to the Franchisor a Relocation Fee of $5,000.

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.

Once Franchisor has approved the site for the Franchised Restaurant, Franchisee has 365 days to actually open and begin operating the Franchised Restaurant. If Franchisee fails to open and begin operating the Franchised Restaurant within 365 days after Franchisor has approved the site for the Franchised Restaurant, Franchisor has the right to terminate the Franchise Agreement immediately on notice without any need for a cure opportunity.

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