How are Black Bear Diner's lease liabilities determined?
Black_Bear_Diner Franchise · 2025 FDDAnswer from 2025 FDD Document
For each Black Bear Diner restaurant to be developed hereunder, Developer shall execute a lease/sublease that complies with the applicable provisions of the Franchise Agreement, or a binding agreement to purchase the site.
Franchisee acknowledges and agrees that, notwithstanding the execution of this Development Agreement and any applicable exhibits and attachments thereto, the selection and approval of a site that may become an Approved Location under a Franchise Agreement shall be governed by the Franchise Agreement and Franchisor's site review and approval procedures as set forth in Franchisor's Manual.
Within 30 days after receipt of the site approval package by Franchisor, Franchisor shall deliver two (2) copies of the Franchise
Agreement along with a copy of its then current franchise disclosure document, if required by law. Immediately upon receipt of the franchise disclosure document, Developer shall return to Franchisor a signed copy of the Receipt Page of the disclosure document. Developer shall execute and deliver as instructed by Franchisor two copies of said Franchise Agreement and the balance of the Franchise Fee therefore as provided in Section 3.1 above.
4.3 Franchisor's Duties
Franchisor shall furnish to Developer site selection guidelines, including Franchisor's minimum standards for a location for the Black Bear Diner restaurant, and such site selection assistance as Franchisor may deem advisable. In response to Developer's request for site approval, Franchisor shall perform one (1) on-site evaluation of a proposed site for each Black Bear Diner restaurant to be developed hereunder. Franchisor shall perform additional on site evaluations as Franchisor may deem advisable in response to Developer's requests for site approval; provided, however, that Franchisor shall not be required to provide on-site evaluation for any proposed site(s) in addition to Franchisee's first proposed site for each Black Bear Diner restaurant. If additional on-site evaluation is deemed necessary and appropriate by Franchisor (on its own initiative or at Franchisee's request) for any Black Bear Diner restaurant to be established, Developer shall reimburse Franchisor for all reasonable expenses incurred by Franchisor in connection with such on-site evaluation visit(s), including, without limitation, the cost of travel, lodging and meals.
Source: Item 23 — RECEIPT (FDD pages 56–243)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, Black Bear Diner franchisees are responsible for securing a lease or purchase agreement for their restaurant location. The FDD states that for each Black Bear Diner restaurant to be developed, the franchisee must execute a lease/sublease that complies with the applicable provisions of the Franchise Agreement, or a binding agreement to purchase the site.
The franchisee is solely responsible for selecting an appropriate location, although Black Bear Diner does provide site selection guidelines and may offer assistance. The franchisor will furnish site selection guidelines, including minimum standards for a location. Black Bear Diner also performs one on-site evaluation of a proposed site for each restaurant to be developed. However, the franchisee bears all costs, liability, and expenses for construction, renovation, or remodeling at the approved location.
Black Bear Diner's review or advice regarding the lease does not guarantee the franchisee's success or represent an opinion on the lease terms. If a franchisee fails to secure a lease for the approved location within 180 days of the agreement date, Black Bear Diner can terminate the agreement. This places the onus on the franchisee to manage the lease negotiation and ensure compliance with the franchise agreement terms, while also bearing the financial risk associated with the lease obligations.