What agreement is referred to as the 'Development Agreement' for Black Bear Diner?
Black_Bear_Diner Franchise · 2025 FDDAnswer from 2025 FDD Document
Subject to the provisions stated below, Franchisor hereby grants to Developer, pursuant to the terms and conditions of this Agreement, the right and obligation to establish and operate ______ (__) Black Bear Diner restaurants in the Development Area described in Exhibit A attached to this Development Agreement.
So long as Developer is in compliance with the terms of this Development Agreement, Franchisor will not, for the term of this Development Agreement, establish or operate, or license others to establish or operate a restaurant utilizing the System and the Marks within the Development Area other than to Developer pursuant to this Development Agreement; provided, however, Franchisor retains the right to: Unless sooner terminated in accordance with the terms of this Agreement, the term of this Agreement and all Development Rights granted hereunder to Developer shall expire on the earlier to occur of the actual opening date of the last of the Black Bear Diner restaurants required to be developed pursuant to the Development Schedule or the last day of the last Development Period under the Development Schedule. At the end of the term of this Development Agreement, the exclusive Development Rights with respect to the Development Area will automatically terminate, and Developer will not have the right to renew or extend the term of this Development Agreement.
If Developer signs a Development Agreement for five (5) or more Franchised Restaurants then Developer agrees to have an Area Development Manager to oversee the operations of all Franchised Restaurants. Developer agrees that its Development Manager: a) shall exert full-time and best efforts to the development and operation of all Black Bear Diner restaurants that Developer owns; (b) may not engage in any other business or activity, directly or indirectly, that requires substantial management responsibility or time commitments or otherwise may conflict with Developer's obligations hereunder; and (c) must complete Franchisors initial training program required of new franchisees to Franchisor's satisfaction.
Developer shall immediately pay to Franchisor upon termination or expiration of the Development Agreement any amounts owed by Developer to Franchisor which are then unpaid plus interest due.
Source: Item 23 — RECEIPT (FDD pages 56–243)
What This Means (2025 FDD)
According to the 2025 Black Bear Diner Franchise Disclosure Document, the Development Agreement grants a developer the right and obligation to establish and operate a specified number of Black Bear Diner restaurants within a defined Development Area, as detailed in Exhibit A of the agreement. The number of restaurants to be developed is specified in the agreement. So long as the developer adheres to the terms of the Development Agreement, Black Bear Diner will not establish, operate, or license others to operate a restaurant using the Black Bear Diner system and marks within the Development Area during the agreement's term, although Black Bear Diner retains certain rights.
The term of the Development Agreement continues until the earlier of either the actual opening date of the last Black Bear Diner restaurant required by the development schedule, or the last day of the final Development Period as outlined in the schedule. Upon the agreement's termination, the exclusive development rights for the Development Area automatically end, with no option for renewal or extension.
If a developer signs a Development Agreement for five or more franchised restaurants, they must appoint an Area Development Manager to oversee operations. This manager must dedicate their full-time efforts to the development and operation of the Black Bear Diner restaurants, cannot engage in conflicting business activities, and must complete Black Bear Diner's initial training program to the franchisor's satisfaction. Upon termination or expiration of the Development Agreement, the developer must immediately pay any outstanding amounts plus interest to Black Bear Diner and maintain the confidentiality of any confidential information.