What is the purpose of the agreement between BBDI LLC and Black Bear Diner, as indicated in the provided text?
Black_Bear_Diner Franchise · 2025 FDDAnswer from 2025 FDD Document
NOTE 1 - NATURE OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Nature of Business: BBDI LLC (the Company) franchises restaurants under the Black Bear Diner brand. The Company provides marketing strategies, organizational expertise, and site acquisition support for franchised restaurants and restaurants under common control. The Company's principal market is in the western United States of America. The following table provides additional information about the Companyowned and franchised restaurants operating as of December 25, 2024 and December 27, 2023:
Subject to the provisions stated below, Franchisor hereby grants to Developer, pursuant to the terms and conditions of this Agreement, the right and obligation to establish and operate _____ (__) Black Bear Diner restaurants in the Development Area described in Exhibit A attached to this Development Agreement.
So long as Developer is in compliance with the terms of this Development Agreement, Franchisor will not, for the term of this Development Agreement, establish or operate, or license others to establish or operate a restaurant utilizing the System and the Marks within the Development Area other than to Developer pursuant to this Development Agreement; provided, however, Franchisor retains the right to:
Franchisor and Developer are, on this day, entering into a BBDI LLC Franchise Agreement, whereby Developer will be granted the right to operate one (1) Franchised Restaurant;
Developer wishes to obtain certain rights to develop additional Black Bear Diner restaurants under Franchisor's System, within the Development Area specified in this Agreement and according to the Development Schedule specified in this Agreement; and
WHEREAS, Franchisor is willing to grant such rights pursuant to the provisions stated below;
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 franchises restaurants under the Black Bear Diner brand. BBDI LLC provides marketing strategies, organizational expertise, and site acquisition support for franchised restaurants and restaurants under common control.
BBDI LLC grants developers the right to establish and operate Black Bear Diner restaurants within a specific Development Area, according to the terms and conditions outlined in the Development Agreement. This agreement ensures that as long as the developer complies with its terms, BBDI LLC will not establish, operate, or license others to operate a restaurant using the Black Bear Diner system and marks within the Development Area, except to the developer under the Development Agreement.
The Franchise Agreement between BBDI LLC and the developer grants the developer the right to operate one franchised restaurant. The developer also expresses a desire to obtain additional development rights for more Black Bear Diner restaurants within a specified Development Area, subject to a Development Schedule. BBDI LLC is willing to grant these rights based on the provisions outlined in the agreement.