What is the requirement for a Black Bear Diner franchisee to acknowledge regarding the franchise agreement amendment?
Black_Bear_Diner Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee acknowledges that from time to time, Franchisor may introduce as part of the System, new menu items and other products, methods or technology which require certain system modifications including, without limitation, the adoption and use of new computer hardware and software, fixtures, furnishings, equipment or signs. Franchisee agrees to make all required upgrades and modifications at its expense as may reasonably be required by Franchisor. No additional investment will be required during the first year of the Initial term; if such additional investment is required to be made in the last year of the Initial term, Franchisee may avoid making the investment by providing notice of intent not to renew its franchise.
Source: Item 23 — RECEIPT (FDD pages 56–243)
What This Means (2025 FDD)
According to the 2025 Black Bear Diner Franchise Disclosure Document, franchisees must acknowledge that Black Bear Diner may introduce new menu items, products, methods, or technology as part of the system. These introductions may require system modifications, including adopting new computer hardware and software, fixtures, furnishings, equipment, or signs. The franchisee is responsible for making all required upgrades and modifications at their own expense, as reasonably required by Black Bear Diner.
However, there is an exception regarding additional investments during the initial term of the franchise agreement. No additional investment will be required during the first year of the initial term. If such additional investment is required in the last year of the initial term, the franchisee has the option to avoid making the investment by providing notice of their intent not to renew the franchise.
This clause ensures that Black Bear Diner can adapt and evolve its system, while also placing the financial burden of upgrades on the franchisee. The exception for the first year provides some financial stability at the outset, and the option to not renew if upgrades are required in the final year offers some flexibility to the franchisee. Prospective franchisees should carefully consider the potential costs of these required upgrades and factor them into their financial projections.