What is the process for a prospective franchisee to open a Black Bear Diner restaurant?
Black_Bear_Diner Franchise · 2025 FDDAnswer from 2025 FDD Document
Single Unit. We grant franchises to individuals or entities for the operation of a single Black Bear Diner restaurant in accordance with our "System" under the terms of our Franchise Agreement attached to this disclosure document as Exhibit B. We refer to the restaurant that you and other franchisees will operate as a "Franchised Restaurant." A Black Bear Diner restaurant is a casual, family-style restaurant which offers huge portions at an affordable price along with a high perceived value. A Black Bear Diner restaurant is typically located in a free-standing, one-story building with surrounding parking. In many instances a prospective franchisee will be able to remodel and convert an existing building or former restaurant for the operation of a Black Bear
Diner restaurant. A franchisee may also elect to construct a new facility or utilize an end cap within a strip center for the operation of a Black Bear Diner restaurant.
Within your Black Bear Diner restaurant, you will operate a gift shop known as a "Black Bear Diner Gift Shop" of approximately 35 to 100 square feet depending upon the overall size of the Franchised Restaurant. Generally, we follow a common theme such that all products offered for sale in the Black Bear Diner Gift Shop either feature or are in some way connected to the black bear concept. Many of the items offered in the Gift Shop feature our Marks ("Trademarked Products") while others follow and capitalize on the bear theme.
All Black Bear Diner restaurants are identified by way of a distinctive trade dress which includes a rustic exterior and interior appearance, interior decorations featuring the black bear theme along with certain designs, carvings and color schemes and exclusive exterior signage. Black Bear Diner restaurants also follow certain operating procedures, techniques, and standards which are referred to as the "Bear Necessities Quality Control Program."
Area Development Agreement. In addition to awarding franchises for a single Black Bear Diner restaurant, we also grant qualified franchisees the option and right to develop multiple Franchised Restaurant(s) within a specific geographic area ("Development Area") over a specific time period according to a pre-determined development schedule. These franchisees will sign our Area Development Agreement in the form attached as Exhibit C to this disclosure document. Under the Area Development Agreement, you will sign a separate Franchise Agreement for each Franchised Restaurant you establish. The Franchise Agreement you sign will be the then-current form of Franchise Agreement we are offering to new franchisees. The size of the Development Area will vary depending upon local market conditions and the number of Franchised Restaurants to be developed.
From March 2012 to March 2018, we offered to certain qualified existing Black Bear Diner franchisees an option to develop and operate one additional Black Bear Diner restaurant in a specific territory under the terms of an Option Agreement. Currently, we do not intend to offer any additional Option Agreements.
Development Services. We are an authorized supplier of certain pre-opening site selection, design and construction services (collectively, "Development Services"). If you engage us to perform Development Services, you may sign a Development Services agreement with us (depending on the type of Development Services), and you will pay us an agreed Development Services Fee based on the Development Services we perform. See Items 5, 7, and 8.
General Description of the Market and Competition
We are one of many franchisors in this highly competitive industry.
Source: Item 1 — THE FRANCHISOR, AND ANY PARENTS, PREDECESSORS AND AFFILIATES (FDD pages 8–11)
What This Means (2025 FDD)
According to the 2025 Black Bear Diner Franchise Disclosure Document, the company grants franchises to individuals or entities for the operation of a single Black Bear Diner restaurant. These restaurants operate under the Black Bear Diner "System" and the terms of the Franchise Agreement, which is included as an exhibit in the FDD. Black Bear Diner restaurants are casual, family-style establishments known for large portions at affordable prices, typically located in freestanding, one-story buildings with parking. Franchisees may remodel existing buildings or construct new facilities, including end-cap locations in strip centers. Each restaurant also includes a Black Bear Diner Gift Shop, ranging from 35 to 100 square feet, featuring bear-themed merchandise. All restaurants have a distinctive rustic design and follow the "Bear Necessities Quality Control Program."
In addition to single-unit franchises, Black Bear Diner offers Area Development Agreements to qualified franchisees, granting the right to develop multiple restaurants within a specific geographic area over a set period, according to a pre-determined schedule. Franchisees entering into an Area Development Agreement must sign a separate Franchise Agreement for each restaurant they establish, using the then-current form offered to new franchisees. The size of the development area varies based on local market conditions and the number of restaurants to be developed.
Black Bear Diner also offers Development Services, including pre-opening site selection, design, and construction. Franchisees can engage Black Bear Diner to perform these services under a separate Development Services agreement, paying an agreed-upon fee based on the services provided. The restaurant industry is heavily regulated, requiring franchisees to understand and comply with federal, state, and local laws, including those related to food safety, health and sanitation, and employment. Franchisees must also comply with zoning, land use, and environmental regulations.