Is a Black Bear Diner franchisee required to remodel their restaurant as a condition of renewal?
Black_Bear_Diner Franchise · 2025 FDDAnswer from 2025 FDD Document
you sign the Franchise Agreement and expires 10 years from the date you actually open your Franchised Restaurant ("Initial Term"), unless terminated earlier in accordance with its terms.
4.2 Renewal Term
Franchisee shall have the right to acquire a successor franchise at the expiration of the initial term for an additional term of ten (10) years ("Renewal Term"), provided the following conditions must have been fulfilled and remain true as of the last day of the Initial Term of this Agreement:
- (a) Franchisee has, during the entire term of this Agreement, substantially complied with all its provisions and is not in default at time of renewal;
- (b) Franchisee shall have the right to remain in possession of the Approved Location for the duration of the Renewal Term;
- (c) Franchisee shall make capital expenditures necessary to remodel, modernize and redecorate the Franchised Restaurant so that the Franchised Restaurant reflects the then-current physical appearance and image for a new Black Bear Diner restaurant;
- (d) Franchisee has given notice to Franchisor of its intent to renew not less than nine (9) months nor more than twelve (12) months prior to the end of the Initial Term;
- (e) Franchisee shall execute and deliver Franchisor's then-current form of franchise agreement to Franchisor. The new franchise agreement shall supersede this Agreement in all respects, and the terms of which may differ from the terms of this Agreement including, without limitation, a different percentage Royalty Fee and Marketing Fund Contribution; provided, however, Franchisee shall not be required to pay the then-current Franchise Fee;
- (f) Franchisee has complied with Franchisor's then-current training requirements for franchisees and their employees;
- (g) Franchisee pays a renewal fee of $5,000 at time of signing the then-current form of franchise agreement; and
- (g) Franchisee has executed a g
Source: Item 23 — RECEIPT (FDD pages 56–243)
What This Means (2025 FDD)
According to Black Bear Diner's 2025 Franchise Disclosure Document, franchisees must make capital expenditures to remodel, modernize, and redecorate their restaurant to reflect the current image of a new Black Bear Diner as a condition of renewal. This ensures that the restaurant aligns with the brand's current standards.
To renew their franchise agreement for an additional ten years, franchisees must meet several conditions. These include substantial compliance with the existing agreement, maintaining possession of the approved location, providing notice of intent to renew, executing the current franchise agreement, complying with training requirements, paying a $5,000 renewal fee, and releasing any claims against Black Bear Diner. The new franchise agreement may have different terms, including royalty fees and marketing fund contributions, but the franchisee will not be required to pay the then-current franchise fee.
Black Bear Diner also has the right to request a refurbishment of the restaurant every five years to conform to the current building design, trade dress, and color schemes. This may involve structural changes, new equipment, remodeling, redecoration, and modifications to existing improvements. Franchisees are also responsible for maintaining the restaurant in an attractive, clean, and sanitary condition and for conducting food safety audits at least three times per year.