What is the role of BBDI LLC in the context of the Development Agreement and the Guaranty for Black Bear Diner?
Black_Bear_Diner Franchise · 2025 FDDAnswer from 2025 FDD Document
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;
NOW, THEREFORE, the parties, in consideration of the undertakings and commitments of each party to the other set forth in this Agreement, hereby agree as follows:
1. DEFINITIONS
Whenever used in this Agreement, unless there is something in the subject matter or context inconsistent therewith, the following words and terms shall have the respective meanings ascribed to them as follows:
"Area Development Manager" means the individual who devotes his or her full-time and best efforts in overseeing the operations of the Franchised Restaurants developed under this Development Agreement as further described in Section 4.6 hereof;
"Confidential Information" means the recipes, ingredients, trade secrets, methods of food preparation, techniques, formats, specifications, procedures, information, systems, methods of business management, sales and promotion techniques, and knowledge of and experience in operating a Black Bear Diner restaurant;
"Development Agreement" means this agreement entitled "BBDI LLC Area Development Agreement" and all instruments supplemental hereto or in amendment or confirmation hereof;
"Development Area" has the meaning given to such term in Section 2.1 as shown on the map set out in Exhibit A hereof;
"Development Fee" has the meaning given to such term in Section 3.1 hereof;
"Development Rights" means the rights granted to Developer to establish and operate Franchised Restaurants in the Development Area under the terms of this Development Agreement and the Franchise Agreement;
"Development Schedule" means the dates to begin operation of each Franchised Restaurant as specified in Exhibit B to this Development Agreement;
"Franchise Agreement" means the then-currently used form of the BBDI LLC franchise agreement that Franchisor is offering to new franchisees.
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 acts as the franchisor in the franchise agreement. The document states that the franchisor and developer are entering into a BBDI LLC Franchise Agreement, granting the developer the right to operate a franchised restaurant. BBDI LLC is responsible for granting the rights to develop additional Black Bear Diner restaurants within a specified development area, according to a development schedule. The agreement outlines the terms and conditions under which these development rights are granted.
BBDI LLC's duties include furnishing site selection guidelines to the developer, including minimum standards for a Black Bear Diner location, and providing site selection assistance. The franchisor will perform one on-site evaluation of a proposed site for each restaurant to be developed. The developer must submit a completed site approval package to the franchisor for each restaurant, and no site is deemed approved unless expressly approved in writing by the franchisor.
Furthermore, BBDI LLC is responsible for providing the franchise disclosure document to potential franchisees within specific timeframes before any binding agreement is signed or payment is made. The disclosure document summarizes provisions of the franchise agreement and other relevant information. The document also lists the names and addresses of franchise sellers and authorized agents for service of process. BBDI LLC executes the Franchise Agreement for each Black Bear Diner restaurant to be developed, provided the developer is in compliance with all requirements and obligations of the Development Agreement and any existing Franchise Agreements.