For Black Bear Diner franchises in New York, what does the addendum supersede?
Black_Bear_Diner Franchise · 2025 FDDAnswer from 2025 FDD Document
- (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;
Source: Item 23 — RECEIPT (FDD pages 56–243)
What This Means (2025 FDD)
Based on the 2025 Black Bear Diner Franchise Disclosure Document, when a franchisee renews their franchise agreement, the new franchise agreement will supersede the original agreement in all respects. This means that all the terms and conditions of the original agreement are replaced by the new agreement.
According to the FDD, the terms of the new franchise agreement may differ from the original, potentially including adjustments to the Royalty Fee percentage and Marketing Fund Contribution. However, the franchisee is not required to pay the then-current Franchise Fee again.
For a prospective Black Bear Diner franchisee, this implies that renewal is not simply an extension of the existing terms. Instead, it involves agreeing to a potentially new set of terms and conditions. Therefore, franchisees need to carefully review the new franchise agreement to understand any changes to their obligations and the fees they must pay.