Will the terms of the renewed Black Bear Diner franchise agreement be identical to the initial agreement?
Black_Bear_Diner Franchise · 2025 FDDAnswer from 2025 FDD Document
you sign the Franchise Agreement and expires 10 years from the date you actually open your Franchised Restaurant ("Initial Term"), unless terminated earlier in accordance with its terms.
4.2 Renewal Term
Franchisee shall have the right to acquire a successor franchise at the expiration of the initial term for an additional term of ten (10) years ("Renewal Term"), provided the following conditions must have been fulfilled and remain true as of the last day of the Initial Term of this Agreement:
- (a) Franchisee has, during the entire term of this Agreement, substantially complied with all its provisions and is not in default at time of renewal;
- (b) Franchisee shall have the right to remain in possession of the Approved Location for the duration of the Renewal Term;
- (c) Franchisee shall make capital expenditures necessary to remodel, modernize and redecorate the Franchised Restaurant so that the Franchised Restaurant reflects the then-current physical appearance and image for a new Black Bear Diner restaurant;
- (d) Franchisee has given notice to Franchisor of its intent to renew not less than nine (9) months nor more than twelve (12) months prior to the end of the Initial Term;
- (e) Franchisee shall execute and deliver Franchisor's then-current form of franchise agreement to Franchisor. The new franchise agreement shall supersede this Agreement in all respects, and the terms of which may differ from the terms of this Agreement including, without limitation, a different percentage Royalty Fee and Marketing Fund Contribution; provided, however, Franchisee shall not be required to pay the then-current Franchise Fee;
- (f) Franchisee has complied with Franchisor's then-current training requirements for franchisees and their employees;
- (g) Franchisee pays a renewal fee of $5,000 at time of signing the then-current form of franchise agreement; and
- (g) Franchisee has executed a g
Source: Item 23 — RECEIPT (FDD pages 56–243)
What This Means (2025 FDD)
According to the 2025 Black Bear Diner Franchise Disclosure Document, the terms of the renewed franchise agreement may differ from the initial agreement. To renew the franchise for an additional ten years, a franchisee must meet several conditions, including compliance with the existing agreement, maintaining possession of the approved location, and remodeling the restaurant to reflect the current Black Bear Diner image.
Most importantly, the franchisee must execute Black Bear Diner's then-current form of franchise agreement, which supersedes the original agreement. The terms of this new agreement may include different royalty fees and marketing fund contributions. However, the franchisee will not be required to pay the then-current franchise fee.
In addition to signing the new agreement, the franchisee must comply with Black Bear Diner's current training requirements for franchisees and their employees, pay a renewal fee of $5,000, and execute a general release of any claims against Black Bear Diner. Therefore, a franchisee should anticipate potential changes in the financial and operational terms when renewing their Black Bear Diner franchise.