What is the radius of the Protected Area granted to a Black Bear Diner franchisee?
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 Black Bear Diner's 2025 Franchise Disclosure Document, a franchisee is granted a Protected Area. This Protected Area extends three miles in radius from the Approved Location of the Black Bear Diner restaurant. This means that, subject to certain reservations of rights by the franchisor, Black Bear Diner will not operate or license others to operate a Black Bear Diner restaurant within that 3-mile radius.
However, the FDD also states that the franchise granted is non-exclusive. Black Bear Diner retains rights to operate or license other businesses, including similar restaurant concepts under different trademarks, both inside and outside the Protected Area. They also retain the right to sell products authorized for use and resale at the franchised restaurant through alternative channels of distribution, like grocery stores or the internet, regardless of location.
This reservation of rights means that while a franchisee has a Protected Area, Black Bear Diner can still operate other concepts or sell products within that area, which could potentially impact the franchisee's business. A prospective franchisee should consider the implications of these rights and how they might affect the potential revenue and customer base of their Black Bear Diner restaurant.