Is the Black Bear Diner Addendum to the Franchise Agreement dependent on any other agreements or conditions?
Black_Bear_Diner Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor shall execute the Franchise Agreement for each Black Bear Diner restaurant to be developed under this Agreement only if: (i) Developer is in compliance with and is not in default of any requirements and obligations of this Development Agreement or any other agreements between Franchisor and Developer; and (ii) in the case of each then existing Franchise Agreement, Developer, as Franchisee, is in compliance with all and is not in default of any of its obligations under the Franchise Agreement. In order to meet the Development Schedule, the Franchise Agreement must be executed by Developer and Franchisor in accordance with the Development Schedule.
Source: Item 23 — RECEIPT (FDD pages 56–243)
What This Means (2025 FDD)
According to the 2025 Black Bear Diner Franchise Disclosure Document, the obligations of Black Bear Diner to execute a Franchise Agreement are conditional upon the developer's compliance with the Development Agreement and any other agreements between the developer and Black Bear Diner. Specifically, Black Bear Diner will only execute the Franchise Agreement if the developer is not in default of the Development Agreement or any other agreements.
This condition precedent ensures that developers fulfill their obligations under the Development Agreement before Black Bear Diner proceeds with individual Franchise Agreements. This protects Black Bear Diner by ensuring that developers are committed to the overall development plan and are meeting their financial and operational responsibilities.
For a prospective franchisee, this means that their ability to secure a Franchise Agreement is contingent on the developer's good standing with Black Bear Diner. Any defaults or non-compliance issues by the developer could potentially delay or prevent the execution of the Franchise Agreement, highlighting the importance of the developer's performance under the Development Agreement.