Under what conditions 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-current image, decor and specifications. Within 10 days after receipt by the Franchisee of the Franchisor's written approval to relocate the Approved Location, the Franchisee will pay to the Franchisor a Relocation Fee of $5,000.
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 two instances where a franchisee may be required to pay a fee: for relocation and for renewal.
A Black Bear Diner franchisee may relocate their restaurant with prior written approval from Black Bear Diner, provided the new location doesn't compete with existing Black Bear Diner restaurants and is within the franchisee's protected area. If relocation is approved, the franchisee must pay a Relocation Fee of $5,000 to Black Bear Diner within 10 days of receiving written approval.
Additionally, a franchisee has the option to acquire a successor franchise for an additional 10-year term if they meet certain conditions. One of these conditions is paying a renewal fee of $5,000 at the time of signing the then-current franchise agreement. Other conditions include substantial compliance with the agreement, the right to remain in possession of the approved location, making necessary capital expenditures to remodel the restaurant to reflect the current image, providing timely notice of intent to renew, executing the current franchise agreement, complying with training requirements, and executing a general release of claims against Black Bear Diner.