Where can I find the specific provisions related to the Black Bear Diner franchise agreement?
Black_Bear_Diner Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 17: RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP]
ITEM 17 RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP
This table lists certain important provisions of the franchise and related agreements. You should read these provisions in the agreements attached to this disclosure document.
FRANCHISE AGREEMENT
| Provision | Section in the Franchise Agreement | Summary | |
|---|---|---|---|
| a. | Term of the franchise | Section 4.1 | The initial term begins when you sign the Franchise Agreement and expires 10 years from the date you actually open your Franchised Restaurant, unless earlier terminated for cause in accordance with the terms of the Franchise Agreement. |
| b. | Renewal or extension of the term | Section 4.2 | You may renew for an additional term of 10 years subject to (c) below. |
| c. | Requirements for you to renew or extend | Section 4.2 | To renew, you must have substantially complied with the provisions of the Franchise Agreement and not be in default at the time of renewal; maintain possession of the premises used in the operation of your Franchised Restaurant; make expenditures to remodel, modernize and redecorate to reflect the then current appearance of new Black Bear Diner restaurants; provide notice of your intent to renew; sign a new franchise agreement; meet current training requirements; pay a renewal fee of $5,000; and sign a general release. The terms of the new franchise agreement may contain materially different terms and conditions. |
| d. | Termination by you | Section 15.1 | If you are in compliance with the Franchise Agreement and we materially breach the Franchise Agreement and fail to cure or begin to cure within 30 days of receiving your written notice. |
See Exhibit I for additional California-specific disclosures.
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, Item 17 provides a summary of important provisions within the franchise and related agreements. It explicitly states that you should read these provisions in the agreements attached to the disclosure document.
Specifically, Item 17 includes a table that outlines key aspects of the franchise agreement, such as the initial term length, renewal options, termination conditions, and dispute resolution processes. For instance, the initial franchise term is 10 years from the restaurant opening date, with a renewal option for another 10 years if certain conditions are met, including paying a $5,000 renewal fee. The table also indicates the specific section of the franchise agreement where each provision is detailed, allowing prospective franchisees to easily locate the full text of each clause.
For California franchisees, additional disclosures pertaining to the franchise agreement can be found in Exhibit I. This directs potential franchisees to specific locations within the FDD and its exhibits to find the complete and detailed terms governing the franchise relationship with Black Bear Diner.