Under what condition are transfer fees collectable for a Black Bear Diner franchise?
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, a relocation fee is required if a franchisee wishes to move their restaurant location. Specifically, if a Black Bear Diner franchisee wants to relocate their approved location, they must first obtain written approval from Black Bear Diner. This approval is contingent upon the new location not competing with any other Black Bear Diner restaurant, whether operated by the franchisor or another franchisee, and the new location falling within the franchisee's protected area.
Furthermore, the new location must adhere to all applicable provisions of the franchise agreement and align with Black Bear Diner's current image, decor, and specifications. This ensures brand consistency across all locations.
Within 10 days of receiving written approval from Black Bear Diner to relocate, the franchisee is obligated to pay a relocation fee of $5,000. This fee likely covers the administrative and oversight costs associated with approving the relocation and ensuring compliance with brand standards at the new site.