What notice of termination is Black Bear Diner required to give to franchisees in Minnesota?
Black_Bear_Diner Franchise · 2025 FDDAnswer from 2025 FDD Document
Except as otherwise provided in Section 8.1, if Developer fails to comply with any material term and condition of this Agreement, or fails to comply with the terms and conditions of any Franchise Agreement or other development agreement between the Developer (or a person or entity affiliated with or controlled by the Developer) and Franchisor, such action shall constitute a default under this Agreement. Upon the occurrence of any such default, Franchisor may terminate this Agreement by giving written notice of termination stating the nature of such default to Developer at least thirty (30) days prior to the effective date of termination; provided, however, that Developer may avoid termination by immediately initiating a remedy to cure such default, curing it to Franchisor's satisfaction, and by promptly providing proof thereof to Franchisor within the thirty (30) day period (or such longer period as applicable law may require). If any such default is not cured within the specified time (or such longer period as applicable law may require), this Agreement and all rights granted hereunder (including but not limited to, the right to develop any new Black Bear Diner restaurants) will terminate without further notice to Developer, effective immediately upon the expiration of the thirty (30) day period (or such longer period as applicable law may require).
Source: Item 23 — RECEIPT (FDD pages 56–243)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, the specific notice of termination Black Bear Diner must provide to franchisees in Minnesota is not detailed within the provided excerpts. While the document outlines general termination conditions and timelines, it does not specify any variations or stipulations based on state law, including Minnesota.
Item 23 generally discusses termination with an opportunity to cure, stating that the franchisor may terminate the agreement with a written notice at least thirty (30) days prior to termination, but this is subject to applicable law which may require a longer period. This suggests that state-specific laws could influence the notice period required. However, the excerpts do not elaborate on what those state-specific requirements might be.
For a prospective Black Bear Diner franchisee in Minnesota, it is essential to seek clarification from the franchisor regarding the specific termination notice requirements mandated by Minnesota state law. Additionally, consulting with a franchise attorney is advisable to ensure full compliance and understanding of their rights and obligations under both the franchise agreement and Minnesota law.