Who is ultimately responsible for selecting the site for a Black Bear Diner franchise?
Black_Bear_Diner Franchise · 2025 FDDAnswer from 2025 FDD Document
If you enter into a Development Agreement with us, we will agree on with you and designate your Development Area. Your Development Agreement will have a schedule by which each Franchised Restaurant to be developed must be approved for commencement of operations. Before or after signing a Franchise Agreement, you and we will agree upon an approved location and protected area for your Franchised Restaurant. We do not determine the site for the first or any additional Franchised Restaurants to be developed under the Development Schedule, but you must receive our prior written consent to the development of a proposed site for the location of each of your Franchised Restaurants. We may, but are not obligated to, assist you in site selection, but you are ultimately responsible for selecting the site.
You are responsible for selecting the site for each of your Franchised Restaurants. In many instances franchisees have a proposed site prior to signing the Franchise Agreement. If you do not have a site which meets our criteria then you must select a site within the geographic area designated in the Franchise Agreement. Though you are solely responsible for selecting the site, we will provide site evaluation assistance at your request. The assistance consists of overall evaluation of alternative sites and at your request one site visit. Our prior approval of the site is required. The factors we consider in approving a site include general suitability, traffic pattern, ease of ingress and egress, visibility, availability of parking, proximity of similar business and the general lease terms. We will approve or disapprove a proposed site within 15 days of receiving all requested information. Our approval of one or more sites is not a representation or a promise by us that a Franchised Restaurant at the approved site will achieve a certain sales volume or a certain level of profitability. If no acceptable site is found by you and approved by us within 60 days after you sign the Franchise Agreement, we have the right to terminate the Franchise Agreement immediately on notice without any need for a cure opportunity. Once we have approved your site for the Franchised Restaurant, you have 365 days to actually open and begin operating your Franchised Restaurant. If you fail to open and begin operating your Franchised Restaurant within 365 days after we have approved your site for your Franchised Restaurant, we have the right to terminate the Franchise Agreement immediately on notice without any need for a cure opportunity.
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 28–35)
What This Means (2025 FDD)
According to the 2025 Black Bear Diner Franchise Disclosure Document, the franchisee is ultimately responsible for selecting the site for their franchised restaurant. While Black Bear Diner may offer general guidelines and assistance in site selection, the final decision rests with the franchisee. This means the franchisee bears the responsibility of identifying a location that meets Black Bear Diner's criteria and securing their approval.
Black Bear Diner does provide site evaluation assistance, including overall evaluation of alternative sites and, upon request, one site visit. The franchisor's approval hinges on factors such as general suitability, traffic patterns, ease of access, visibility, parking availability, proximity to similar businesses, and lease terms. Black Bear Diner commits to approving or disapproving a proposed site within 15 days of receiving all necessary information.
However, it's crucial to understand that Black Bear Diner's approval of a site does not guarantee any specific sales volume or profitability. Furthermore, if the franchisee fails to find a mutually acceptable site within 60 days of signing the Franchise Agreement, Black Bear Diner reserves the right to terminate the agreement. Once a site is approved, the franchisee has 365 days to open and begin operating the restaurant, or the agreement may be terminated. This highlights the importance of thorough due diligence and a proactive approach to site selection for prospective Black Bear Diner franchisees.