Under what circumstances can Black Bear Diner establish maximum rates and prices for my restaurant?
Black_Bear_Diner Franchise · 2025 FDDAnswer from 2025 FDD Document
At our discretion, suggest menu item pricing policies to the extent allowed by law. You will determine the prices of the products and services that you offer to guests, except that we may establish maximum rates and prices for marketing and promotions if permitted by law. (Franchise Agreement, Section 8.6)
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, franchisees determine the prices of their products and services. However, Black Bear Diner may establish maximum rates and prices for marketing and promotions if permitted by law.
This means that while franchisees have control over their day-to-day pricing, Black Bear Diner retains the right to set price ceilings during promotional periods or marketing campaigns. This is a fairly common practice in franchising, allowing the franchisor to ensure consistent brand messaging and customer value across all locations during specific promotions.
Prospective franchisees should be aware of this potential limitation on their pricing autonomy and factor it into their business planning. It would be prudent to discuss with Black Bear Diner the specific circumstances under which they might implement maximum pricing, and how much flexibility franchisees will have in setting prices outside of those promotional periods.