What equipment and services are required to be bought or leased for a Black Bear Diner franchise?
Black_Bear_Diner Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Expenditure(1) | Amount | Method of Payment | When Due | To Whom Paid |
|---|---|---|---|---|
| Franchise Fee(2) | $24,000 to $55,000 | Lump Sum | At Signing of Franchise Agreement | Us |
| Development Services Fee(3) | $0 to $100,000 | Lump Sum | As Signing of Development Services Agreement | Us |
| First Month’s | $9,000 to $20,000 | As Arranged | As Arranged | Landlord |
| Rent(4) | ||||
| Security | $7,500 to $23,000 | As Arranged | As Arranged | Landlord, |
| Deposits(5) | Utilities | |||
| Leasehold | $635,200 to $989,000 | As Arranged | As Arranged | Third Parties |
| Improvements(6) | ||||
| Furniture, | $82,100 to $96,600 | As Arranged | As Arranged | Third Parties |
| Fixtures & | ||||
| Equipment(7) | ||||
| Kitchen | $450,000 to 487,100 | As Arranged | As Arranged | Third Parties |
| Equipment(8) | ||||
| Décor Package(9) | $28,100 to $34,900 | As Arranged | As Arranged | Third Parties |
| Carved Bear | $35,500 to $41,800 | As Arranged | As Arranged | Third Parties |
| Package(10) | ||||
| Initial Inventory – | $14,000 to $20,000 | As Arranged | As Arranged | Third Parties |
| Food & Paper(11) | ||||
| Initial Inventory – | $2,000 to $5,000 | As Arranged | As Arranged | Third Parties |
| Gift Shop | ||||
| Products(12) | ||||
| Insurance(13) | $7,000 to $20,000 | As Arranged | As Arranged | Third Parties |
| Signage(14) | $25,300 to $33,900 | As Arranged | As Arranged | Third Parties |
| Office Equipment | $1,800 to $2,200 | As Arranged | As Arranged | Third Parties |
| and Supplies(15) | ||||
| Computer | $45,000 to | As Arranged | As Arranged | Third Parties |
| System(16) | $85,000 | |||
| Grand Opening Advertising(17) | $5,500 to $12,000 | As Arranged | First Three Months of Operation | Third Parties |
| Type of | Amount | Method of | When Due | To Whom |
| Expenditure(1) | Payment | Paid | ||
| Training | $44,000 to $85,000 | As Arranged | As Arranged | Third Parties |
| Expenses(18) | ||||
| Licenses & | $7,000 to $20,000 | As Arranged | As Arranged | Third Parties |
| Permits(19) | ||||
| Professional | $20,000 to $65,000 | As Arranged | As Arranged | Third Parties |
| Fees(20) | ||||
| Additional Funds- | $100,000 to $150,000 | As Arranged | As Arranged | You |
| 3 months(21) | Determine | |||
| TOTAL(22) | $1,546,200 to $2,349,000 |
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, franchisees must buy or lease specific equipment and services to establish and operate their restaurant. The estimated initial investment for furniture, fixtures, and equipment ranges from $82,100 to $96,600. This includes serving equipment, a cash register/point-of-sale system and materials, a digital jukebox for use as a sound system, and miscellaneous small wares. The cost of kitchen equipment, including an oven, fryer, refrigerator, and freezer, is estimated to be between $450,000 and $487,100. Black Bear Diner will provide a detailed list of required kitchen equipment.
In addition to the above, franchisees are required to purchase a Décor Package, with costs ranging from $28,100 to $34,900, and a Carved Bear Package, costing between $35,500 and $41,800. Franchisees must also acquire an initial inventory of food and paper products, estimated to cost between $14,000 and $20,000, and gift shop products from approved suppliers, with an estimated cost of $2,000 to $5,000. Furthermore, franchisees must invest in signage, with costs ranging from $25,300 to $33,900, and office equipment and supplies, estimated at $1,800 to $2,200. A computer system is also required, with an estimated cost of $45,000 to $85,000.
Beyond tangible items, franchisees are obligated to secure insurance, with initial costs for the first three months estimated between $7,000 and $20,000, including liquor liability coverage. They must also cover expenses for licenses and permits, with costs ranging from $7,000 to $20,000. Black Bear Diner requires franchisees to spend a minimum of $5,500 on grand opening advertising, starting one week before opening and continuing for eight weeks after. While there is no additional fee for the initial training program, franchisees are responsible for covering transportation, meals, and lodging expenses during training, with total costs ranging from $44,000 to $85,000. These costs can vary based on the number of attendees, travel distance, and accommodation choices.
The FDD indicates that costs for many of these items can vary significantly based on factors such as the size and location of the restaurant, supplier choices, local wage rates, and the availability of used equipment. Prospective franchisees should carefully review these estimates with a business advisor or accountant, as Black Bear Diner does not typically offer financing for these expenditures. Engaging professionals such as architects, attorneys, and accountants may also be necessary, with fees ranging from $20,000 to $65,000, depending on the location and prevailing service rates.