Under what conditions can a Black Bear Diner franchisee terminate the Franchise Agreement?

According to Black Bear Diner's 2025 Franchise Disclosure Document, a franchisee can terminate the Franchise Agreement under specific conditions. The franchisee must be in compliance with the Franchise Agreement. Additionally, Black Bear Diner must materially breach the Franchise Agreement and fail to cure or even begin to cure the breach within 30 days of receiving written notice from the franchisee.

This means that a Black Bear Diner franchisee cannot simply terminate the agreement at will. They must have valid grounds, specifically a material breach by the franchisor. The franchisee also carries the burden of providing written notice to Black Bear Diner and allowing them a 30-day period to address the issue. If Black Bear Diner begins to address the issue within 30 days, the franchisee may not be able to terminate the agreement.

It is important for prospective Black Bear Diner franchisees to understand these termination conditions, as prematurely terminating the agreement without proper cause could result in legal and financial repercussions. Franchisees should carefully document any perceived breaches by Black Bear Diner and follow the notification procedures outlined in the Franchise Agreement to ensure they are acting within their rights.