Can the Area Development Agreement for a Black Bear Diner be modified by verbal agreement?
Black_Bear_Diner Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in | Summary | ||
|---|---|---|---|---|
| Area Development Agreement is terminated or expires | the Area Development Agreement | and services similar to those provided by a Black Bear Diner restaurant within the Development Area or within 25 miles of any Black Bear Diner restaurant (subject to state law). | ||
| s. | Modification of the Development Agreement | Section 12.5 | The Area Development Agreement can only be modified or amended by written agreement signed by both parties. |
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 46–52)
What This Means (2025 FDD)
According to the 2025 Black Bear Diner Franchise Disclosure Document, the Area Development Agreement can only be modified or amended by a written agreement signed by both parties. This means that any verbal agreements or promises made outside of the written contract are not binding and cannot be enforced.
This provision protects both the franchisee and Black Bear Diner by ensuring that all modifications to the Area Development Agreement are documented and agreed upon in writing. It prevents misunderstandings or disputes that could arise from relying on verbal agreements, which can be easily misconstrued or forgotten.
As a prospective franchisee, it is crucial to understand that any changes to your development agreement must be formally documented and signed by both you and Black Bear Diner. Do not rely on verbal assurances or promises, as they will not be legally binding. This requirement is a standard practice in franchising to maintain clarity and avoid potential legal issues.