Under what circumstances is the Black Bear Diner franchisee exempt from paying the transfer fee?
Black_Bear_Diner Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
5.6 Relocation
Franchisee may, with the prior written approval of the Franchisor, relocate the Approved Location if the proposed new location does not compete with any Black Bear Diner restaurant operated by Franchisor or any other Black Bear Diner franchisee and the proposed new location is within the Franchisee's Protected Area. The new location of the Franchised Restaurant, including the real estate and the building, must comply with all applicable provisions of this Agreement and with the Franchisor's then-cur
Source: Item 23 — RECEIPT (FDD pages 56–243)
What This Means (2025 FDD)
According to the 2025 Black Bear Diner Franchise Disclosure Document, there are no explicit exemptions from transfer fees detailed in the provided excerpts. However, the document does specify a relocation fee.
The FDD states that if a franchisee wishes to relocate their Black Bear Diner to a new location within their protected area, they must obtain prior written approval from the franchisor. Upon receiving this approval, the franchisee is obligated to pay a Relocation Fee of $5,000 within 10 days.
Since the excerpts do not detail any exemptions regarding transfer fees, it is important for a prospective Black Bear Diner franchisee to directly ask the franchisor about specific circumstances that might warrant a waiver or reduction of these fees. Understanding the conditions under which these fees may be adjusted or waived can be a crucial aspect of financial planning for the franchise.