Under what conditions will the Black Bear Diner agreement and the rights of the parties take effect?

According to Black Bear Diner's 2025 Franchise Disclosure Document, the agreement and the rights of the parties involved will only take effect once the agreement is accepted and signed by Black Bear Diner. This means that even after a prospective franchisee signs the agreement, it is not binding until Black Bear Diner formally approves and signs it. This condition ensures that Black Bear Diner retains control over who they grant franchises to and can assess the suitability of each candidate before the agreement becomes legally operative.

This clause protects Black Bear Diner by allowing them to conduct their due diligence and ensure that the franchisee meets their standards before fully committing to the franchise relationship. It also provides a clear point at which the agreement becomes effective, reducing potential ambiguity or disputes about when the obligations of both parties begin.

For a prospective franchisee, this condition highlights the importance of presenting a strong application and demonstrating their qualifications to Black Bear Diner. It also means that they should not take any irreversible steps or make significant investments based solely on their own signature on the agreement, as the deal is not finalized until Black Bear Diner's acceptance and signature.