How is the Development Services Fee determined when engaging Black Bear Diner for Development Services?
Black_Bear_Diner Franchise · 2025 FDDAnswer from 2025 FDD Document
Development Services. We are an authorized supplier of certain pre-opening site selection, design and construction services (collectively, "Development Services"). If you engage us to perform Development Services, you may sign a Development Services agreement with us (depending on the type of Development Services), and you will pay us an agreed Development Services Fee based on the Development Services we perform. See Items 5, 7, and 8.
Source: Item 1 — THE FRANCHISOR, AND ANY PARENTS, PREDECESSORS AND AFFILIATES (FDD pages 8–11)
What This Means (2025 FDD)
According to the 2025 Black Bear Diner Franchise Disclosure Document, Black Bear Diner offers Development Services related to pre-opening site selection, design, and construction. If a franchisee chooses to engage Black Bear Diner for these services, they may enter into a Development Services agreement. The Development Services Fee is determined based on the specific services Black Bear Diner performs.
This means that the fee is not a fixed amount but rather is dependent on the scope and type of services the franchisee requests from Black Bear Diner. This approach is fairly common in franchising, as it allows for customization based on the franchisee's needs and experience. For instance, a franchisee with prior restaurant development experience might require fewer services than a new franchisee.
Prospective franchisees should carefully consider which Development Services they need and obtain a clear understanding of how the fees will be calculated. It is important to discuss this in detail with Black Bear Diner to avoid any surprises during the development process. Item 5, 7, and 8 may provide additional information regarding the Development Services Fee.