Does the Black Bear Diner Addendum to the Franchise Agreement have any financial implications for the franchisee?
Black_Bear_Diner Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Franchisee acknowledges that from time to time, Franchisor may introduce as part of the System, new menu items and other products, methods or technology which require certain system modifications including, without limitation, the adoption and use of new computer hardware and software, fixtures, furnishings, equipment or signs. Franchisee agrees to make all required upgrades and modifications at its expense as may reasonably be required by Franchisor. No additional investment will be required during the first year of the Initial term; if such additional investment is required to be made in the last year of the Initial term, Franchisee may avoid making the investment by providing notice of intent not to renew its franchise.
(g) Franchisee pays a renewal fee of $5,000 at time of signing the then-current form of franchise agreement; and
Source: Item 23 — RECEIPT (FDD pages 56–243)
What This Means (2025 FDD)
According to the 2025 Black Bear Diner Franchise Disclosure Document, the Addendum to the Franchise Agreement outlines several financial implications for franchisees. Specifically, if a franchisee wishes to relocate their Black Bear Diner restaurant, they must first obtain written approval from Black Bear Diner. Upon receiving this approval, the franchisee is obligated to pay a Relocation Fee of $5,000 to Black Bear Diner within 10 days. This fee covers the administrative and logistical costs associated with approving the new location.
Furthermore, the agreement addresses financial responsibilities related to maintaining and updating the restaurant. Black Bear Diner may introduce new menu items, products, methods, or technologies that require system modifications, such as new computer hardware and software, fixtures, furnishings, equipment, or signs. The franchisee is responsible for covering the expenses of these upgrades and modifications as reasonably required by Black Bear Diner. However, no additional investment will be required during the first year of the initial term. If such investment is required in the last year of the initial term, the franchisee can avoid the investment by providing notice of intent not to renew their franchise agreement.
Lastly, if a franchisee chooses to renew their franchise agreement for an additional ten-year term, they must meet several conditions, including paying a renewal fee of $5,000 at the time of signing the then-current form of the franchise agreement. This renewal fee is in addition to any capital expenditures required to remodel, modernize, and redecorate the franchised restaurant to reflect the current image of a new Black Bear Diner restaurant. These financial obligations are important considerations for prospective franchisees as they evaluate the long-term costs and benefits of investing in a Black Bear Diner franchise.