Does Black Bear Diner have to reimburse franchisees if they modify or discontinue using a mark?

According to Black Bear Diner's 2025 Franchise Disclosure Document, Black Bear Diner is not required to reimburse franchisees for expenses incurred if they are required to modify or discontinue the use of a mark, or to substitute a trademark or service mark for a discontinued mark. The FDD states that the franchisee's sole and exclusive remedy against Black Bear Diner, should a mark need to be modified in Black Bear Diner's judgment or due to an involuntary loss of the mark, is the modification or substitution of the discontinued mark.

This means that if Black Bear Diner decides to change a trademark or service mark, or if they lose the right to use a mark, franchisees will be responsible for covering the costs of updating signage, marketing materials, and other branded items to reflect the change. This could potentially represent a significant expense for franchisees, especially if a major brand element is affected.

In the franchise industry, it is not uncommon for franchisors to reserve the right to modify trademarks. However, some franchisors may offer some form of financial assistance or reimbursement to franchisees to offset the costs associated with these changes. The fact that Black Bear Diner explicitly states that they will not be required to reimburse these expenses is something a prospective franchisee should carefully consider.

Therefore, prospective franchisees should factor in the potential costs of rebranding or updating materials due to trademark changes when evaluating the Black Bear Diner franchise opportunity. It would be prudent to inquire about the history of trademark changes within the Black Bear Diner system and the likelihood of future modifications to better assess this risk.