Is a Black Bear Diner franchisee obligated to make expenditures for changes or modifications?
Black_Bear_Diner Franchise · 2025 FDDAnswer from 2025 FDD Document
rtesy cards;
- (h) music and music selections played in the Franchised Restaurant; and
- (i) programs, policies or specifications regarding the use of Artificial Intelligence in connection with the development and operation of Franchised Restaurants.
10.2 Modification
Franchisee acknowledges that from time to time, Franchisor may introduce as part of the System, new menu items and other products, methods or technology which require certain system modifications including, without limitation, the adoption and use of new computer hardware and software, fixtures, furnishings, equipment or signs. Franchisee agrees to make all required upgrades and modifications at its expense as may reasonably be required by Franchisor. No additional investment will be required during the first year of the Initial term; if such additional investment is required to be made in the last year of the Initial term, Franchisee may avoid making the investment by providing notice of intent not to renew its franchise.
10.3 Variance
Franchisee acknowledges that because complete and detailed uniformity under many varying conditions may not be possible or practical, Franchisor specifically reserves the right and privilege, at its sole discretion and as it may deem in the best interests of all concerned in any specific instance, to vary standards for any franchisee based upon the peculiarities of any particular site or other circumstances, density of population, business potential, existing business practices or any other condition which Franchisor deems to be of importance to the operation of any particular Black Bear Diner restaurant. Franchisee agrees that it shall have no claim against Franchisor on account of any variation from System standards granted to any franchisee and shall not be entitled to require Franchisor to disclose or grant to Franchisee a like or similar variation hereunder.
**11.
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD pages 40–41)
What This Means (2025 FDD)
According to Black Bear Diner's 2025 Franchise Disclosure Document, franchisees are generally required to make expenditures for changes or modifications to the system. Black Bear Diner may introduce new menu items, products, methods, or technology that necessitate system modifications. These modifications can include adopting new computer hardware and software, fixtures, furnishings, equipment, or signs. The franchisee is responsible for covering the expenses associated with these upgrades and modifications as reasonably required by Black Bear Diner. However, no additional investment will be required during the first year of the initial franchise term. If such investment is required in the last year of the initial term, the franchisee can avoid the investment by providing notice of intent not to renew the franchise.
In addition to system modifications, Black Bear Diner franchisees are also obligated to refurbish their Franchised Restaurant at the Franchisor's request, but not more often than once every five years, to conform to the then-current building design, trade dress, and color schemes for a new Black Bear Diner restaurant. This refurbishment may require expenditures on structural changes, new equipment, remodeling, redecoration, and modifications to existing improvements. The franchisee is also responsible for maintaining the restaurant in an attractive, clean, and sanitary condition, making necessary repairs and replacements due to wear and tear.
Furthermore, Black Bear Diner retains the right to modify the products, services, or merchandise that franchisees may sell, including ingredients, preparation methods, and packaging. Franchisees are obligated to accept, use, and display these changes within the system and must make all necessary expenditures for such changes or modifications as reasonably required by Black Bear Diner. This extends to advertising materials, which must be approved by Black Bear Diner or its designated agent before use, and the franchisor may require franchisees to use specific agencies for creating these materials.
These requirements ensure that all Black Bear Diner locations maintain a consistent brand image and quality, but they also represent a potentially significant financial obligation for franchisees. Prospective franchisees should carefully consider these potential costs and discuss them with the franchisor to fully understand the financial implications of these required changes and modifications.