Does renewing a Black Bear Diner franchise require signing a general release?
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, franchisees must sign a general release to renew their franchise agreement. The initial franchise term is 10 years from the restaurant's opening date. To renew for an additional 10-year term, a franchisee must meet several requirements.
These requirements include substantially complying with the existing Franchise Agreement, not being in default at the time of renewal, maintaining possession of the restaurant premises, and modernizing the restaurant to reflect the current Black Bear Diner image. Franchisees must also provide notice of their intent to renew, sign a new franchise agreement, and meet current training requirements.
In addition to these obligations, franchisees must pay a renewal fee of $5,000. The 2025 FDD also states that the terms of the new franchise agreement may differ significantly from the original agreement. This means that franchisees should carefully review the new agreement to understand any changes to their rights and obligations.