What protection does Black Bear Diner provide to Minnesota franchisees regarding the use of Marks?
Black_Bear_Diner Franchise · 2025 FDDAnswer from 2025 FDD Document
ally modify Attachment A and the specific address of that location will automatically become the Approved Location as if originally set forth in Attachment A.
2.4 Protected Area
Subject to the provisions of this Agreement, including Section 2.5 below, Franchisor will not operate or license others to operate a Black Bear Diner restaurant within a three (3) mile radius from the Approved Location, otherwise known as the "Protected Area."
2.5 Franchisor's Reservation of Rights
Notwithstanding Section 2.4 above, Franchisee acknowledges that the Franchise granted under this Agreement is non-exclusive and Franchisor expressly retains all rights and discretion with respect to the Marks and System, including the right to: (1) own, acquire, establish and operate, and to license others to establish and operate, Black Bear Diner restaurants at any location outside of the Protected Area; (2) own, acquire, establish and operate, and license others to establish and operate, other businesses including similar restaurant concepts, using other trademarks, service marks and commercial symbols at any location either within or outside of the Protected Area;
Source: Item 23 — RECEIPT (FDD pages 56–243)
What This Means (2025 FDD)
According to the 2025 Black Bear Diner Franchise Disclosure Document, a franchisee is granted a protected area. After Black Bear Diner approves a location for the franchised restaurant, the franchisor will not operate or license others to operate a Black Bear Diner restaurant within a three (3) mile radius from the Approved Location. This three-mile radius is referred to as the "Protected Area."
However, the franchise agreement is non-exclusive. Black Bear Diner retains rights regarding the Marks and System. These rights include the ability to operate or license others to operate Black Bear Diner restaurants outside the Protected Area. They can also operate other businesses, including similar restaurant concepts, using different trademarks, either within or outside the Protected Area. Black Bear Diner also retains the right to sell or license others to sell products bearing the trademarks through alternative channels of distribution, such as grocery stores or the internet, regardless of location.
This means that while a franchisee has a three-mile radius of protection from other Black Bear Diner restaurants, the franchisor can still operate or license other concepts nearby. Additionally, the franchisee's territory is not protected from online sales or sales through other distribution channels. This is a fairly typical arrangement in the franchise industry, as franchisors seek to maximize brand exposure and sales through diverse channels.