If I default on my Black Bear Diner franchise agreement and it's not cured, what damages might I owe?
Black_Bear_Diner Franchise · 2025 FDDAnswer from 2025 FDD Document
Upon termination or expiration, this Agreement and all rights granted hereunder to Franchisee shall terminate and Franchisee will:
- (e) pay all sums owing to Franchisor which may include, but not be limited to, all damages, costs and expenses, including reasonable attorneys' fees and lost future profits arising from the premature termination of this Agreement for cause due to Franchisee's abandonment or other material default that is not cured in accordance with the requirements of this Agreement;
- (f) pay to Franchisor all damages, costs and expenses, including reasonable attorneys' fees, incurred by Franchisor subsequent to the termination or expiration of the franchise in obtaining injunctive or other relief for the enforcement of any provisions contained in Sections 17;
Source: Item 23 — RECEIPT (FDD pages 56–243)
What This Means (2025 FDD)
According to Black Bear Diner's 2025 Franchise Disclosure Document, if your franchise agreement is terminated due to your uncured default, you will be responsible for several financial obligations to Black Bear Diner. These include all sums that you owe to Black Bear Diner, encompassing damages, costs, and expenses. This extends to reasonable attorney's fees, as well as lost future profits resulting from the premature termination of the agreement due to your abandonment or other material default.
In addition to covering outstanding payments and legal costs, you may also be required to cover expenses Black Bear Diner incurs while seeking injunctive or other relief to enforce provisions outlined in Section 17 of the franchise agreement. This could involve actions taken by Black Bear Diner to protect its brand, operational methods, or confidential information.
It is important to note that the financial repercussions of defaulting on your Black Bear Diner franchise agreement can be substantial, potentially including not only immediate costs but also the loss of anticipated future earnings. Franchisees should carefully review the terms of the franchise agreement and seek legal counsel to fully understand their obligations and the potential financial consequences of a default.