Under what conditions are transfer fees collectable for a Black Bear Diner franchise in Washington?
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 franchisee may be required to pay a relocation fee of $5,000 if they relocate their Black Bear Diner restaurant. This fee is due within 10 days after the franchisee receives written approval from Black Bear Diner to relocate the approved location.
Several conditions must be met before relocation is approved. The proposed new location must not compete with any Black Bear Diner restaurant operated by the franchisor or another franchisee. Additionally, the new location must be within the franchisee's protected area. The real estate and building of the relocated restaurant must comply with all applicable provisions of the Franchise Agreement and with Black Bear Diner's then-current image, decor, and specifications.
This relocation fee is separate from other fees that a Black Bear Diner franchisee may incur, such as the initial franchise fee, royalty fees, and marketing fund contributions. It is specifically tied to the act of moving the restaurant to a new location and is intended to cover the franchisor's costs associated with evaluating and approving the new site. Franchisees should carefully consider these costs and conditions before deciding to relocate their restaurant.