Under what conditions can the Black Bear Diner marketing fund be terminated?

According to the 2025 Black Bear Diner Franchise Disclosure Document, Black Bear Diner maintains the right to terminate the Marketing Fund. However, the Marketing Fund cannot be terminated until all the money in the fund has been spent on advertising and promotional purposes. Alternatively, the funds can be returned to the franchisees on a pro rata basis, meaning each franchisee would receive a portion of the remaining funds proportional to their contribution.

This condition protects franchisees by ensuring that the money they contribute to the Marketing Fund is used for its intended purpose: advertising and promotion. Black Bear Diner cannot simply shut down the fund and keep the remaining money. They must either use it for marketing or return it to the franchisees.

It is important for prospective franchisees to understand this provision, as it provides some assurance that their marketing contributions will be handled responsibly. Franchisees should also request and review the annual accounting of the Marketing Fund to monitor how the funds are being used and to ensure that Black Bear Diner is adhering to the terms outlined in the Franchise Agreement.