What site selection guidelines does Black Bear Diner furnish to the Developer?
Black_Bear_Diner Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor shall furnish to Developer site selection guidelines, including Franchisor's minimum standards for a location for the Black Bear Diner restaurant, and such site selection assistance as Franchisor may deem advisable. In response to Developer's request for site approval, Franchisor shall perform one (1) on-site evaluation of a proposed site for each Black Bear Diner restaurant to be developed hereunder.
For each Black Bear Diner restaurant to be developed hereunder, Developer shall submit to Franchisor, in a form specified by Franchisor, a completed site approval package which shall include a site approval form prescribed by Franchisor, an option contract, letter of intent, term sheet, or other evidence satisfactory to Franchisor which describes Developer's favorable prospects for obtaining such site, and such other information or materials as Franchisor may reasonably require.
No site shall be deemed approved unless it has been expressly approved in writing by Franchisor.
Developer hereby acknowledges and agrees that approval by Franchisor of a site does not constitute an assurance, representation, or warranty of any kind, express or implied, as to the suitability of the site for the Black Bear Diner restaurant or for any other purpose.
Approval by Franchisor of the site indicates only that Franchisor believes the site complies with acceptable minimum criteria established by Franchisor solely for its purposes as of the time of the evaluation.
Both Franchisee and Franchisor acknowledge that application of criteria that may have been effective with respect to other sites and premises may not be predictive of potential for all sites and that, subsequent to approval by Franchisor of a site, demographic and/or economic factors, such as competition from other similar businesses, included in or excluded from criteria used by Franchisor could change, thereby altering the potential of a site.
Such factors are unpredictable and are beyond the control of Franchisor.
Franchisor shall not be responsible for the failure of a site approved by Franchisor to meet Developer's expectations as to revenue or operational criteria.
Developer further acknowledges and agrees that its acceptance of a franchise for the operation of a Black Bear Diner restaurant at a site is based on its own independent investigation of the suitability of the site.
Once Franchisor has approved the site for the Franchised Restaurant, Franchisee has 365 days to actually open and begin operating the Franchised Restaurant. If Franchisee fails to open and begin operating the Franchised Restaurant within 365 days after Franchisor has approved the site for the Franchised Restaurant, Franchisor has the right to terminate the Franchise Agreement immediately on notice without any need for a cure opportunity.
Source: Item 23 — RECEIPT (FDD pages 56–243)
What This Means (2025 FDD)
According to the 2025 Black Bear Diner Franchise Disclosure Document, Black Bear Diner furnishes site selection guidelines to the Developer, including the Franchisor's minimum standards for a location. Black Bear Diner also provides site selection assistance as it deems advisable. As part of this process, the Developer must submit a completed site approval package in a form specified by Black Bear Diner, including a site approval form, an option contract, letter of intent, term sheet, or other evidence satisfactory to Black Bear Diner. This evidence should describe the Developer's favorable prospects for obtaining the site, along with any other information or materials that Black Bear Diner may reasonably require. Black Bear Diner will perform one on-site evaluation of a proposed site for each restaurant to be developed.
Site approval is not guaranteed and must be expressly approved in writing by Black Bear Diner. The FDD states that site approval does not constitute an assurance, representation, or warranty of any kind as to the suitability of the site for a Black Bear Diner restaurant. Approval only indicates that Black Bear Diner believes the site complies with acceptable minimum criteria established by Black Bear Diner for its purposes at the time of evaluation.
The document also makes clear that criteria applied to other sites may not be predictive of potential for all sites, and demographic or economic factors could change after approval, altering the site's potential. Black Bear Diner is not responsible if an approved site fails to meet the Developer's expectations regarding revenue or operational criteria. The Developer is responsible for their own independent investigation of the site's suitability. Once a site is approved, the franchisee has 365 days to open the Black Bear Diner restaurant, or Black Bear Diner has the right to terminate the Franchise Agreement.