Under what circumstances does Black Bear Diner reserve the right to vary standards for a franchisee?
Black_Bear_Diner Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee acknowledges that because complete and detailed uniformity under many varying conditions may not be possible or practical, Franchisor specifically reserves the right and privilege, at its sole discretion and as it may deem in the best interests of all concerned in any specific instance, to vary standards for any franchisee based upon the peculiarities of any particular site or other circumstances, density of population, business potential, existing business practices or any other condition which Franchisor deems to be of importance to the operation of any particular Black Bear Diner restaurant. Franchisee agrees that it shall have no claim against Franchisor on account of any variation from System standards granted to any franchisee and shall not be entitled to require Franchisor to disclose or grant to Franchisee a like or similar variation hereunder.
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 retains the right to vary standards for a franchisee under specific circumstances. Black Bear Diner may, at its sole discretion, vary standards for any franchisee based on the peculiarities of a particular site. This means that the physical location of the Black Bear Diner restaurant can influence the standards applied to it.
Other circumstances that may cause Black Bear Diner to vary standards include population density, business potential, and existing business practices. These factors suggest that Black Bear Diner considers the local market and competitive landscape when determining the standards for a particular franchise. Any other condition that Black Bear Diner deems important to the operation of a specific Black Bear Diner restaurant may also result in varied standards.
The FDD states that franchisees have no claim against Black Bear Diner due to any variations in System standards granted to other franchisees. Furthermore, franchisees are not entitled to require Black Bear Diner to disclose or grant similar variations. This clause emphasizes that Black Bear Diner has complete discretion over these variations, and franchisees do not have the right to demand equal treatment or transparency in these decisions. This could lead to inconsistencies between different franchise locations and potentially create tension among franchisees if some receive more favorable treatment than others.