What must a Black Bear Diner franchisee do to terminate the Franchise Agreement if Black Bear Diner materially breaches it?

According to the 2025 Black Bear Diner Franchise Disclosure Document, a franchisee can terminate the Franchise Agreement if they are in compliance with the agreement, Black Bear Diner materially breaches the agreement, and Black Bear Diner fails to cure or begin to cure the breach within 30 days of receiving written notice from the franchisee.

This means that a franchisee cannot simply terminate the agreement upon any breach by Black Bear Diner. The breach must be 'material,' which generally means it significantly impacts the franchisee's ability to operate the business or damages its financial interests. The franchisee also has a responsibility to notify Black Bear Diner in writing of the breach and give them a 30-day window to fix the problem or at least start taking corrective action. If Black Bear Diner does neither, the franchisee then has grounds for termination.

This type of clause is fairly standard in franchise agreements, as it balances the interests of both parties. It prevents a franchisee from terminating for minor issues while also providing a mechanism to exit the agreement if the franchisor seriously fails to meet its obligations. It is important for prospective franchisees to understand what constitutes a 'material' breach, as defined in the Franchise Agreement, and to document all communications with Black Bear Diner regarding any potential breaches.