Does the Black Bear Diner Addendum to the Franchise Agreement require a specific day to be entered?
Black_Bear_Diner Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee expressly acknowledges and agrees that a pre-condition to opening the Black Bear Diner restaurant shall be the Franchisor's written authorization to open, which authorization shall be given only upon Franchisee's completing, to Franchisor's satisfaction, (i) construction, renovation and remodeling of the Approved Location and Franchised Restaurant and (ii) training as required by Section 8 of this Agreement. In an effort to obtain Franchisor's authorization to open and begin operation of the Franchised Restaurant, Franchisee agrees to notify Franchisor on such
form as Franchisor may prescribe verifying that all pre-opening obligations have been completed in compliance with this Agreement.
Once Franchisor has approved the site for the Franchised Restaurant, Franchisee has 365 days to actually open and begin operating the Franchised Restaurant. If Franchisee fails to open and begin operating the Franchised Restaurant within 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.
Source: Item 23 — RECEIPT (FDD pages 56–243)
What This Means (2025 FDD)
Based on the 2025 Black Bear Diner Franchise Disclosure Document, the franchisee must notify Black Bear Diner on a prescribed form to verify completion of all pre-opening obligations. The FDD states that once Black Bear Diner approves the site for the franchised restaurant, the franchisee has 365 days to open and begin operating the restaurant. Failure to open within this timeframe grants Black Bear Diner the right to terminate the Franchise Agreement immediately with notice, without needing to provide an opportunity to cure the issue.
This requirement ensures that franchisees are diligent in meeting the pre-opening requirements and adhering to the timeline set by Black Bear Diner. It also allows Black Bear Diner to maintain control over the brand's expansion and ensure that new restaurants open in a timely manner. The 365-day period provides a clear expectation for franchisees and a defined timeframe for completing the necessary steps to launch their Black Bear Diner restaurant.
Prospective franchisees should be aware of this deadline and plan accordingly to avoid potential termination of their franchise agreement. They should also clarify with Black Bear Diner the specific form and process for notifying the franchisor of completed pre-opening obligations to ensure compliance with this requirement.