conditional

Under what condition will Black Bear Diner approve sites for each Franchised Restaurant?

Black_Bear_Diner Franchise · 2025 FDD

Answer from 2025 FDD Document

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 Black Bear Diner's 2025 Franchise Disclosure Document, franchisees are responsible for selecting the site for each of their restaurants. Black Bear Diner will provide site evaluation assistance at the franchisee's request, including overall evaluation of alternative sites and one site visit. However, Black Bear Diner requires prior approval of the site.

The factors that Black Bear Diner considers when approving a site include general suitability, traffic patterns, ease of access, visibility, parking availability, proximity to similar businesses, and general lease terms. Black Bear Diner will approve or disapprove a proposed site within 15 days of receiving all requested information.

It is important to note that Black Bear Diner's approval of a site does not guarantee any specific sales volume or level of profitability for the Franchised Restaurant. If a franchisee fails to find a site acceptable to Black Bear Diner within 60 days after signing the Franchise Agreement, Black Bear Diner has the right to terminate the agreement immediately. Once a site is approved, the franchisee has 365 days to open and begin operating the Franchised Restaurant, or Black Bear Diner can terminate the Franchise Agreement.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.