What are the obligations of BBDI LLC under the Black Bear Diner Addendum to the Franchise Agreement?
Black_Bear_Diner Franchise · 2025 FDDAnswer from 2025 FDD Document
er 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.
4.4 Conditions Precedent to Franchisor's Obligations
Franchisor shall execute the Franchise Agreement for each Black Bear Diner restaurant to be developed under this Agreement only if: (i) Developer is in compliance with and is not in default of any requirements and obligations of this Development Agreement or any other agreements between Franchisor and Developer; and (ii) in the case of each then existing Franchise Agreement, Developer, as Franchisee, is in compliance with all and is not in default of any of its obligations under the Franchise Agreement. In order to meet the Development Schedule, the Franchise Agreement must be executed by Developer and Franchisor in accordance with the Development Schedule.
4.5 No Subfranchising by Developer
Developer shall have no right under this Agreement to sublicense, subfranchise, resell, or otherwise transfer any interest in this Agreement or any Franchise Agreement.
4.6 Area Development Manager
If Developer signs a Development Agreement for five (5) or more Franchised Restaurants then Developer agrees to have an Area Development Manager to oversee the operations of all Franchised Restaurants. Developer agrees that its Development Manager: a) shall exert full-time and best efforts to the development and operation of all Black Bear Diner restaurants that Developer owns; (b) may not engage in any other business or activity, directly or indirectly, that requires substantial management responsibility or time commitments or otherwise may conflict with Developer's obligations hereunder; and (c) must complete Franchisors initial training program required of new franchisees to Franchisor's satisfaction.
**5.
Source: Item 23 — RECEIPT (FDD pages 56–243)
What This Means (2025 FDD)
According to the 2025 Black Bear Diner Franchise Disclosure Document, BBDI LLC, as the Franchisor, has specific duties outlined in the Area Development Agreement. BBDI LLC must furnish site selection guidelines, including minimum standards for a Black Bear Diner location, and provide site selection assistance as deemed advisable. In response to a developer's request for site approval, Black Bear Diner is obligated to perform one on-site evaluation of a proposed site for each restaurant to be developed under the agreement. Additional on-site evaluations will be performed if deemed advisable by Black Bear Diner.
However, Black Bear Diner is not required to provide on-site evaluations beyond the franchisee's first proposed site for each restaurant. If additional on-site evaluations are necessary, the developer is responsible for reimbursing Black Bear Diner for all reasonable expenses incurred during the evaluation visits, including costs for travel, lodging, and meals.
Furthermore, Black Bear Diner is obligated to deliver two copies of the Franchise Agreement along with a copy of its then-current franchise disclosure document (if required by law) within 30 days after receiving the site approval package. BBDI LLC must also execute the Franchise Agreement for each Black Bear Diner restaurant to be developed, but only if the developer is in compliance with all requirements and obligations of the Development Agreement and any other agreements between the parties. Also, the developer must be in compliance with all obligations under any existing Franchise Agreements.
Finally, a pre-condition to opening a Black Bear Diner restaurant is the Franchisor's written authorization to open, which is only given after the franchisee completes construction, renovation, and remodeling of the approved location and the required training to Black Bear Diner's satisfaction.