Under what circumstances will the Black Bear Diner Development Agreement terminate before the end of its term?
Black_Bear_Diner Franchise · 2025 FDDAnswer from 2025 FDD Document
st to a felony or other crime or offense that may adversely affect the goodwill associated with the Marks;
- 8.1.4 Developer makes any unauthorized use of the Marks or unauthorized use or disclosure of the Confidential Information;
- 8.1.5 Franchisor has delivered a notice of termination of a Franchise Agreement in accordance with its terms and conditions or Developer has terminated a Franchise Agreement without cause; or
- 8.1.6 Developer fails to meet the Development Schedule set forth in Exhibit B.
8.2 Termination With Opportunity to Cure
Except as otherwise provided in Section 8.1, if Developer fails to comply with any material term and condition of this Agreement, or fails to comply with the terms and conditions of any Franchise Agreement or other development agreement between the Developer (or a person or entity affiliated with or controlled by the Developer) and Franchisor, such action shall constitute a default under this Agreement. Upon the occurrence of any such default, Franchisor may terminate this Agreement by giving written notice of termination stating the nature of such default to Developer at least thirty (30) days prior to the effective date of termination; provided, however, that Developer may avoid termination by immediately initiating a remedy to cure such default, curing it to Franchisor's satisfaction, and by promptly providing proof thereof to Franchisor within the thirty (30) day period (or such longer period as applicable law may require).
Source: Item 23 — RECEIPT (FDD pages 56–243)
What This Means (2025 FDD)
According to the 2025 Black Bear Diner Franchise Disclosure Document, the Development Agreement can be terminated before its term if the Developer fails to comply with any material term or condition of the agreement. This includes failing to comply with the terms and conditions of any Franchise Agreement or other development agreement between the Developer (or an affiliated entity) and Black Bear Diner. If such a failure occurs, it constitutes a default under the Development Agreement.
Black Bear Diner may terminate the Development Agreement by providing written notice to the Developer at least thirty (30) days prior to the termination date. The notice must specify the nature of the default. However, the Developer can avoid termination by promptly initiating a remedy to cure the default to Black Bear Diner's satisfaction and providing proof of the cure within the thirty-day period, or any longer period required by applicable law.
If the default is not cured within the specified time frame, the Development Agreement and all rights granted under it, including the right to develop new Black Bear Diner restaurants, will terminate immediately upon the expiration of the thirty-day period (or any legally required extension) without further notice to the Developer. Upon termination, the Development Rights granted to the Developer are automatically terminated, and the Developer loses any additional rights to establish or operate a Black Bear Diner restaurant for which a Franchise Agreement has not been executed.