What is the 'Protected Area' granted to a Black Bear Diner franchisee?

According to Black Bear Diner's 2025 Franchise Disclosure Document, a franchisee is granted a geographic area known as a "Protected Area" under the Franchise Agreement. Black Bear Diner agrees not to operate or license others to operate a Black Bear Diner restaurant within this Protected Area during the term of the Franchise Agreement, provided the franchisee complies with the agreement. The specific description of the Protected Area is included as an exhibit to the Franchise Agreement, and its perimeter may be defined by street boundaries, county lines, state lines, municipal boundaries, or other similar descriptions.

For a typical Black Bear Diner restaurant, the Protected Territory will encompass an approximate 3-mile radius around the Franchised Restaurant. However, it's important to note that Black Bear Diner retains certain rights, even within the Protected Area. They can still establish and operate other businesses, including similar restaurant concepts under different trademarks, and sell and distribute products authorized for use and resale at the Franchised Restaurant through alternative channels of distribution, such as grocery stores, convenience stores, mail order, and Internet sales, to customers located within the Protected Area.

Despite the Protected Area, Black Bear Diner franchisees may still face competition from other franchisees, outlets owned by Black Bear Diner, or other channels of distribution or competitive brands controlled by Black Bear Diner. The franchisee is also not granted an exclusive territory. Black Bear Diner is also not restricted from soliciting or accepting orders from, or selling products or services using any trademarks to, consumers located within the Protected Area, including orders, products or services offered from other distribution channels, such as the Internet, catalogues, or other direct marketing sales, without any compensation to the franchisee.

Prospective franchisees should carefully review the exhibit to the Franchise Agreement that describes the Protected Area to fully understand its boundaries and any limitations. They should also consider the potential for competition from other channels and brands controlled by Black Bear Diner when evaluating the franchise opportunity.