What is the purpose of standardized advertising and promotion for the Black Bear Diner franchise system?
Black_Bear_Diner Franchise · 2025 FDDAnswer from 2025 FDD Document
Recognizing the value of advertising and the importance of the standardization of advertising and promotion to the furtherance of the goodwill and the public image of the Black Bear Diner franchise system and Marks, Franchisee agrees as follows:
11.1 Local Advertising
Each month, Franchisee agrees to spend not less than one percent (1%) of its previous month's Gross Sales on Local Advertising including local marketing, advertising, promotions and public relations activities. Such expenditures shall be made directly by Franchisee. Within thirty (30) days of the end of each month, Franchisee shall furnish to Franchisor an accounting in a form as designated by Franchisor of the expenditures for the preceding month.
Source: Item 23 — RECEIPT (FDD pages 56–243)
What This Means (2025 FDD)
According to the 2025 Black Bear Diner Franchise Disclosure Document, standardized advertising and promotion are essential for enhancing the goodwill and public image of the Black Bear Diner franchise system and its Marks. This means that Black Bear Diner believes a consistent brand presentation across all locations is crucial for maintaining a positive reputation and attracting customers.
To support this, franchisees are required to participate in both local and national advertising efforts. Specifically, franchisees must spend at least one percent of their previous month's gross sales on local advertising initiatives. These local efforts include marketing, advertising, promotions, and public relations activities, all managed directly by the franchisee. Franchisees must also provide an accounting of these expenditures to Black Bear Diner each month.
In addition to local advertising, Black Bear Diner franchisees contribute to a Marketing Fund, which supports broader advertising campaigns, including television, radio, internet, and print advertising. This fund also covers public relations activities and the development of marketing materials. The Marketing Fund is maintained separately from Black Bear Diner's general operating funds and is used specifically for advertising and promotional purposes. This coordinated approach ensures that the Black Bear Diner brand is consistently promoted, benefiting all franchisees through increased brand recognition and customer loyalty.