When is the fee for failure to attend the Franchisee Convention due for a Black Bear Diner franchise?
Black_Bear_Diner Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee(1) | Amount | Due Date |
|---|---|---|
| Failure to Attend Franchisee Convention | $2,500 | Same as Royalty Fee |
| Failure to Attend General Manager Annual Training Meeting | $1,500 | Same as Royalty Fee |
| Damages, Costs and Attorneys’ Fees | Will vary under circumstances | As incurred |
| Indemnification | Will vary under circumstances | As incurred |
Source: Item 6 — OTHER FEES (FDD pages 14–18)
What This Means (2025 FDD)
According to Black Bear Diner's 2025 Franchise Disclosure Document, the fee for failure to attend the Franchisee Convention is $2,500 and is due at the same time as the Royalty Fee. The Royalty Fee for Black Bear Diner is 4.5% of Gross Sales and is due weekly. Therefore, the $2,500 fee for failure to attend the Franchisee Convention is due weekly.
This means that if a franchisee fails to attend the Black Bear Diner Franchisee Convention, they will be assessed a $2,500 fee, which they must pay on the same weekly schedule as their royalty payments. This policy incentivizes franchisees to attend the convention, likely because Black Bear Diner believes franchisee participation is important for maintaining brand standards, sharing best practices, and fostering a sense of community within the franchise system.
Franchisees should be aware of this policy and factor the potential cost of non-attendance into their business planning. While attendance at the Franchisee Convention is not explicitly stated as mandatory, the $2,500 fee serves as a financial disincentive for skipping the event. Franchisees should weigh the benefits of attending the convention against the cost of the non-attendance fee when making their decision.