Black Bear Diner

The franchise fee of $55,000 exceeds the typical range for casual dining franchises. What specific services, training, or equipment does this cover that justifies the premium pricing?

Your financial performance metrics significantly exceed typical ranges for casual dining. Can you provide detailed Item 19 data broken down by unit age, location type, and tenure to understand performance variability?

What percentage of the 162 current units report financial data for Item 19, and how many units are excluded from the disclosed sales figures?

The termination clause allows 13 defaults without cure opportunities. Can you provide specific examples of the non-curable defaults and explain the rationale for offering no opportunity to remedy these issues?

How has the franchisor enforced the 25-mile non-compete radius in practice? How many former franchisees have been held to this restriction post-termination or expiration?

Given that territory is not exclusive despite encroachment protection language, what specific encroachment protections exist in writing, and have there been disputes over encroachment in the past 3 years?

All disputes must be resolved through binding arbitration in Redding, California. What are the typical costs and timelines for this process, and how many disputes have been arbitrated in the past 3 years?

The agreement requires personal guarantees from 10%+ owners and potentially spouses. Can you clarify the spouse guarantee requirement and provide sample guarantee language?

Bottom quartile units still generate over $2 million in gross sales. What is the range of profitability across units, and what percentage of franchisees achieve positive returns within the first 3 years?

Why is the Investment Costs score significantly below category norms (43 vs. 73.0-77.0)? What additional capital expenditures or working capital requirements exist beyond the disclosed franchise fee?

In 2023, there were 11 exits (closures, terminations, transfers, ceased operations) compared to 7 in 2022 and 6 in 2024. What caused the spike in 2023, and what changes were implemented to reduce exits?

The termination causes count of 13 is below typical (15.0-20.0). Are there additional termination grounds not captured in this count, or does the franchisor intentionally limit termination triggers?

Of the 8 units that transferred or ceased over the past year, how many were due to franchisee choice versus franchisor pressure or financial distress?

What support and training is provided beyond the initial opening, and why does the Support & Training score of 100/100 contrast with scores of 43 for Investment Costs?

Are there any pending litigation cases or regulatory investigations not yet reflected in the data, and what is the dispute history for the past 5+ years?

Can you provide the renewal fee structure and explain what happens if a franchisee does not renew at the end of the initial 10-year term regarding inventory, equipment, and non-compete obligations?

How are royalties and ad fund calculated? Are there volume discounts, rebates, or performance incentives available to franchisees?

What technology systems require the $250 monthly fee, and can franchisees opt out or use alternative systems? Have there been fee increases in the past 5 years?

Of the 162 current units, how many are within 25-mile radius of other Black Bear Diner locations, and how has the franchisor managed potential cannibalization?

What is the breakdown of the 6 net new units added in the past year between new openings and acquisitions, and what is the typical time to profitability for new franchisees?