What are some examples of non-curable defaults under the Black Bear Diner Area Development Agreement?
Black_Bear_Diner Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in the Area Development Agreement | Summary | |
|---|---|---|---|
| h. | "Cause" defined (defaults which cannot be cured) | Section 8.1 and 9.1 | Non-curable defaults include: bankruptcy related events, any unapproved transfers, any material misrepresentations in the application for the Development Agreement; conviction of a felony; any unauthorized use of our Marks or Confidential Information; termination of a Franchise Agreement by us for cause or by you without cause; your failure to meet the development obligations. We can terminate the Development Agreement if we have delivered a notice of termination of a Franchise Agreement in accordance with its terms and conditions or you have terminated a Franchise Agreement without cause. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 41–46)
What This Means (2025 FDD)
According to the 2025 Black Bear Diner Franchise Disclosure Document, certain defaults under the Area Development Agreement cannot be cured, meaning the agreement can be terminated immediately by Black Bear Diner without giving the developer an opportunity to fix the problem. These non-curable defaults are outlined in Section 8.1 and 9.1 of the Area Development Agreement.
Examples of these non-curable defaults include bankruptcy-related events, any unapproved transfers of the Area Development Agreement, or material misrepresentations made during the application process for the agreement. Additionally, a conviction of a felony, any unauthorized use of Black Bear Diner's Marks or Confidential Information, termination of a Franchise Agreement by Black Bear Diner for cause, or termination by the developer without cause, and failure to meet the development obligations also constitute non-curable defaults.
Black Bear Diner can also terminate the Area Development Agreement if they have delivered a notice of termination of a Franchise Agreement according to its terms, or if the developer has terminated a Franchise Agreement without cause. These provisions are designed to protect Black Bear Diner's interests and ensure that developers adhere to the terms and obligations outlined in the Area Development Agreement. Prospective developers should carefully review these sections to understand the circumstances under which their agreement could be terminated without an opportunity to cure the default.