factual
Where can I find more details about the Black Bear Diner Development Services Fee?
Black_Bear_Diner Franchise · 2025 FDDAnswer from 2025 FDD Document
EXPLANATORY NOTES:
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- Type of Expenditure. In general, except for security deposits, all payments are non-refundable including the Franchise Fee. The Franchise Fee is partially refundable under certain circumstances as described in Item 5. We do not finance any portion of your initial investment.
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- Franchise Fee. The Franchise Fee is described in greater detail in Item 5.
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- Development Services Fee. Engaging us for Development Services is optional. The Development Services Fee is described in greater detail in Item 5.
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- First Month's Rent. You must provide a suitable site from which to operate your Franchised Restaurant. Normally, a site is obtained on a leasehold basis. This estimate is based on one month's rent for a space of approximately 4,500 to 6,000 square feet. There may be other lease acquisition costs such as prepaid rent and security deposits. It is extremely difficult to estimate lease costs because of the wide variation in costs between locations.
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- Security Deposits. Security deposits generally are required by the utility companies, the landlord and any equipment lessors you may elect to use. Amounts will vary depending on the requirements under the various leases, utilities' policies and your credit rating. Included is one month's rent for a security deposit in connection with your lease and utilities.
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- Leasehold Improvements. The structure must be renovated according to our standards and specifications for furnishings and décor. The cost of the improvements will vary based upon size, condition and location of the premises, local wage rates and material costs. The low range assumes you obtain space that is already configured for a restaurant and that needs minimal buildout. The high range assumes that you must construct the interior from an empty shell space. Your costs will most likely be significantly higher if you elect new construction.
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- Furniture, Fixtures & Equipment. You must buy or lease certain equipment and related services including serving equipment, a cash register/point-of-sale system, point-of-sale materials, a digital jukebox for use as a sound system, miscellaneous small wares, and signage. The Franchised Restaurant's equipment package will depend on the presence of existing food service facilities, square footage and anticipated volumes.
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, Item 7 provides details on the Development Services Fee. Specifically, explanatory note 3 in Item 7 states that engaging Black Bear Diner for Development Services is optional and that the Development Services Fee is described in greater detail in Item 5. Item 5 was not included in the provided excerpts.
Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only.
It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.