What is the minimum obligation for a Black Bear Diner Developer regarding the number of Franchised Restaurants they must continuously maintain in operation?
Black_Bear_Diner Franchise · 2025 FDDAnswer from 2025 FDD Document
Developer shall be bound by and strictly follow the Development Schedule set forth in Exhibit B of this Development Agreement. By the dates set forth under the Development Schedule, Developer shall enter into a Franchise Agreement to establish and operate Black Bear Diner restaurants in the number indicated in the Development Schedule. Developer acknowledges and agrees that the time limits and time frames set forth in and inherent in the Development Schedule shall govern Developer's obligations hereunder. Developer will enter into a separate Franchise Agreement with Franchisor pursuant to this Agreement for each Franchised Restaurant to be developed under this Agreement. Developer shall at all times continuously maintain in operation pursuant to each Franchise Agreement at least the number of Franchised Restaurants set forth in the Development Schedule.
Source: Item 23 — RECEIPT (FDD pages 56–243)
What This Means (2025 FDD)
According to the 2025 Black Bear Diner Franchise Disclosure Document, a developer must adhere to the Development Schedule outlined in Exhibit B of the Development Agreement. This schedule dictates the number of Black Bear Diner restaurants the developer is obligated to establish and operate.
The developer is required to enter into a Franchise Agreement for each restaurant to be developed under the Development Agreement. Furthermore, the developer must continuously maintain in operation, at all times, at least the number of franchised restaurants as specified in the Development Schedule. This means that the developer's obligation isn't just to open the restaurants initially, but to keep them running throughout the term of the agreement.
This requirement ensures that Black Bear Diner can rely on the developer to actively build out the brand's presence in the designated area according to the agreed-upon timeline. It also protects Black Bear Diner from a developer who might open restaurants and then quickly close them, which could damage the brand's reputation and market penetration. Prospective developers should carefully review Exhibit B to fully understand the scope of their development obligations and the ongoing operational requirements.