Are there any required actions outlined in the Black Bear Diner Addendum to the Franchise Agreement?
Black_Bear_Diner Franchise · 2025 FDDAnswer from 2025 FDD Document
365 days after Franchisor has approved the site for the Franchised Restaurant, Franchisor has the right to terminate the Franchise Agreement immediately on notice without any need for a cure opportunity.
5.6 Relocation
Franchisee may, with the prior written approval of the Franchisor, relocate the Approved Location if the proposed new location does not compete with any Black Bear Diner restaurant operated by Franchisor or any other Black Bear Diner franchisee and the proposed new location is within the Franchisee's Protected Area. The new location of the Franchised Restaurant, including the real estate and the building, must comply with all applicable provisions of this Agreement and with the Franchisor's then-current image, decor and specifications. Within 10 days after receipt by the Franchisee of the Franchisor's written approval to relocate the Approved Location, the Franchisee will pay to the Franchisor a Relocation Fee of $5,000.
5.7 Remodeling, Repairs and Maintenance
At Franchisor's request, but not more often than once every five years, unless sooner required by the lease for the Approved Location, Franchisee shall refurbish the Franchised Restaurant to conform to the then-current building design, trade dress, and color schemes for a new Black Bear Diner restaurant. Such refurbishment may require expenditures by Franchisee on, among other things, structural changes, installing new equipment, remodeling, redecoration and modifications to existing improvements. Franchisee agrees to maintain its Franchised Restaurant consistent with its own high standards as well as with Franchisor's standards as set forth in the Manual. Franchisee will, at its expense, repair, maintain, paint and keep the Franchised Restaurant and Approved Location in an attractive, clean and sanitary condition and make repairs or replacements required because of wear and tear, and agrees to have complete food safety audits performed at the Franchised Restaurant at such times (currently at least 3 times per calendar year) by such approved vendors as may be set forth in the Manual from time to time.
6. MARKS
6.1 Ownership
Franchisor is the owner or licensee of the Marks licensed to Franchisee by this Agreement. Franchisee acknowledges that its right to use the Marks is derived solely from this Agreement and is limited to the conduct of business by Franchisee pursuant to and in compliance with this Agreement and all applicable standards, specifications and operating procedures prescribed by Franchisor during the term of the Franchise. Any unauthorized use of the Marks by Franchisee is a breach of this Agreement and an infringement of the rights of Franchisor in and to the Marks. All usage of the Marks by Franchisee and any goodwill established by Franchisee's use of the Marks shall inure to the exclusive benefit of Franchisor and its affiliates. This Agreement does not confer any goodwill or other interests in the Marks upon Franchisee. Franchisee shall not, at any time during the term of this Agreement or after its termination or expiration, contest the validity or ownership of any of the Marks or assist any other person in contesting the validity or ownership of any of the Marks. All provisions of this Agreement applicable to the Marks apply to any additional
trademarks, service marks and commercial symbols authorized for use by and licensed to Franchisee by Franchisor after the date of this Agreement.
6.2 Limitations on Use
Franchisee agrees that it will use the Marks as the Franchised Restaurant's sole identification, and that it will not use any Mark (1) as part of any corporate or legal business name, (2) with any prefix, suffix, or other modifying words, terms, designs, or symbols (other than logos we have licensed to you), (3) in selling any unauthorized services or products, (4) as part of any domain name, homepage, electronic address, or otherwise in connection with a Website, or (5) in any other manner that Franchisor has not expressly authorized in writing.
Franchisee agrees to display the Marks prominently as prescribed by Franchisor at the Franchised Restaurant and on menus, forms, advertising, supplies, and other designated materials.
Source: Item 23 — RECEIPT (FDD pages 56–243)
What This Means (2025 FDD)
According to the 2025 Black Bear Diner Franchise Disclosure Document, several actions are required of the franchisee as part of the Addendum to the Franchise Agreement.
First, if a franchisee wishes to relocate their Black Bear Diner restaurant, they must obtain prior written approval from the franchisor. The proposed new location must not compete with any other Black Bear Diner, whether operated by the franchisor or another franchisee, and it must be within the franchisee's protected area. Additionally, the new location must comply with all applicable provisions of the Franchise Agreement and the franchisor's current image, decor, and specifications. Upon receiving written approval to relocate, the franchisee must pay a Relocation Fee of $5,000 to Black Bear Diner within 10 days.
Second, before opening a Black Bear Diner restaurant, the franchisee must obtain written authorization from the franchisor. This authorization is granted only after the franchisee completes construction, renovation, and remodeling of the approved location to the franchisor's satisfaction, and completes the required training. The franchisee must also notify the franchisor using a prescribed form, verifying that all pre-opening obligations have been met. The franchisee then has 365 days to open and begin operating the restaurant after site approval. Failure to do so can result in immediate termination of the Franchise Agreement by Black Bear Diner.
Finally, franchisees must adhere to Black Bear Diner's standards for appearance and trade dress, including displaying the brand's marks prominently. The restaurant's location must conform to the franchisor's specifications for decor, furniture, fixtures, equipment, and color schemes. Franchisees are required to purchase a Décor Package and a Carved Bear Package from the franchisor's designated supplier, which may include the franchisor or its affiliates. These packages include specific decorative items necessary for the interior decoration of the restaurant, and must be installed according to the franchisor's approved floor plans and quality standards.