When is the development fee due for a Black Bear Diner Area Development Agreement?
Black_Bear_Diner Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Expenditure(1) | Amount | Method of Payment | When Due | To Whom Paid |
|---|---|---|---|---|
| Development Fee(2) | $74,500 | Lump Sum | At Signing of Area Development Agreement | Us |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT YOUR ESTIMATED INITIAL INVESTMENT (FRANCHISE AGREEMENT) (FDD pages 18–22)
What This Means (2025 FDD)
According to the 2025 Black Bear Diner Franchise Disclosure Document, the development fee of $74,500 is due at the signing of the Area Development Agreement. This fee applies if you enter into an agreement to open 5 Black Bear Diner franchises. The FDD specifies that this payment must be made in a lump sum to Black Bear Diner.
It is important to note that this development fee covers the right to develop multiple locations, and a portion of it will be credited towards the franchise fee for each restaurant after the first one. The initial franchise fee for the first restaurant is $55,000, payable upon signing the Franchise Agreement. The franchise fee for subsequent restaurants ranges from $24,000 to $45,000, depending on the number of restaurants to be developed.
Prospective franchisees should carefully consider the implications of the Area Development Agreement, including the financial commitment and the timeline for opening multiple locations. It is advisable to review the agreement with a business advisor or accountant to fully understand the obligations and potential benefits. Understanding the payment schedule and the non-refundable nature of most fees, except for security deposits, is crucial for financial planning.