Does the Black Bear Diner Addendum to the Franchise Agreement supersede any prior agreements?
Black_Bear_Diner Franchise · 2025 FDDAnswer from 2025 FDD Document
you sign the Franchise Agreement and expires 10 years from the date you actually open your Franchised Restaurant ("Initial Term"), unless terminated earlier in accordance with its terms.
4.2 Renewal Term
Franchisee shall have the right to acquire a successor franchise at the expiration of the initial term for an additional term of ten (10) years ("Renewal Term"), provided the following conditions must have been fulfilled and remain true as of the last day of the Initial Term of this Agreement:
- (a) Franchisee has, during the entire term of this Agreement, substantially complied with all its provisions and is not in default at time of renewal;
- (b) Franchisee shall have the right to remain in possession of the Approved Location for the duration of the Renewal Term;
- (c) Franchisee shall make capital expenditures necessary to remodel, modernize and redecorate the Franchised Restaurant so that the Franchised Restaurant reflects the then-current physical appearance and image for a new Black Bear Diner restaurant;
- (d) Franchisee has given notice to Franchisor of its intent to renew not less than nine (9) months nor more than twelve (12) months prior to the end of the Initial Term;
- (e) Franchisee shall execute and deliver Franchisor's then-current form of franchise agreement to Franchisor. The new franchise agreement shall supersede this Agreement in all respects, and the terms of which may differ from the terms of this Agreement including, without limitation, a different percentage Royalty Fee and Marketing Fund Contribution; provided, however, Franchisee shall not be required to pay the then-current Franchise Fee;
- (f) Franchisee has complied with Franchisor's then-current training requirements for franchisees and their employees;
- (g) Franchisee pays a renewal fee of $5,000 at time of signing the then-current form of franchise agreement; and
- (g) Franchisee has executed a g
Source: Item 23 — RECEIPT (FDD pages 56–243)
What This Means (2025 FDD)
According to the 2025 Black Bear Diner Franchise Disclosure Document, when a franchisee renews their franchise agreement, the new agreement will supersede the previous one. To renew the franchise for an additional 10-year term, the franchisee must meet several conditions. These include substantially complying with the existing agreement, remaining in good standing, and having the right to remain at the approved location.
Additionally, the franchisee is required to remodel the restaurant to match the current Black Bear Diner image, provide notice of intent to renew between 9 and 12 months before the initial term ends, and adhere to the franchisor's current training requirements. The franchisee must also execute the franchisor's current franchise agreement, which will replace the existing agreement in all aspects.
Notably, the terms of the new agreement may differ, potentially including changes to the royalty fee and marketing fund contribution percentages. However, the franchisee is not required to pay the then-current franchise fee. Finally, the franchisee must pay a $5,000 renewal fee and execute a general release of claims against Black Bear Diner.