How many additional years can a Black Bear Diner franchise be renewed for?
Black_Bear_Diner Franchise · 2025 FDDAnswer from 2025 FDD Document
to this disclosure document.**
FRANCHISE AGREEMENT
| Provision | Section in the Franchise Agreement | Summary | |
|---|---|---|---|
| a. | Term of the franchise | Section 4.1 | The initial term begins when you sign the Franchise Agreement and expires 10 years from the date you actually open your Franchised Restaurant, unless earlier terminated for cause in accordance with the terms of the Franchise Agreement. |
| b. | Renewal or extension of the term | Section 4.2 | You may renew for an additional term of 10 years subject to (c) below. |
| c. | Requirements for you to renew or extend | Section 4.2 | To renew, you must have substantially complied with the provisions of the Franchise Agreement and not be in default at the time of renewal; maintain possession of the premises used in the operation of your Franchised Restaurant; make expenditures to remodel, modernize and redecorate to reflect the then current appearance of new Black Bear Diner restaurants; provide notice of your intent to renew; sign a new franchise agreement; meet current training requirements; pay a renewal fee of $5,000; and sign a general release. The terms of the new franchise agreement |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 41–46)
What This Means (2025 FDD)
According to Black Bear Diner's 2025 Franchise Disclosure Document, a franchisee can renew their franchise agreement for one additional term of 10 years, provided certain conditions are met. The initial franchise term begins when the Franchise Agreement is signed and lasts for 10 years from the restaurant's opening date, unless terminated earlier due to cause. This means a franchisee could potentially operate under the Black Bear Diner brand for a total of 20 years if the renewal option is exercised.
To renew the franchise agreement with Black Bear Diner, the franchisee must substantially comply with the existing Franchise Agreement and not be in default at the time of renewal. They must also maintain possession of the restaurant premises and invest in remodeling, modernizing, and redecorating the restaurant to align with the current appearance of new Black Bear Diner locations. Additionally, the franchisee must provide notice of their intent to renew, sign a new franchise agreement, meet the current training requirements, pay a renewal fee of $5,000, and sign a general release.
It's important to note that the terms of the new franchise agreement may differ materially from the original agreement. This means that while a franchisee has the option to renew, the conditions and obligations under the renewed agreement could be significantly different. Prospective franchisees should carefully consider these factors and be prepared for potential changes in the franchise terms upon renewal. Consulting with a franchise attorney is advisable to fully understand the implications of the renewal terms and conditions.