Where can I find more details about the Black Bear Diner Franchise Fee?
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 |
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.
If you enter into a Development Agreement requiring you to open 5 Franchised Restaurants, you will pay a Development Fee of $74,500 ($22,500+$20,000+$16,000+$16,000). The initial Franchise Fee for your first Franchised Restaurant is $55,000 and is due upon signing the Franchise Agreement. The Franchise Fee for each additional Franchised Restaurant ranges from $24,000 to $45,000 depending on the number of restaurants to be developed. In the case of each Franchised Restaurant after the first one, we will credit against the Franchise Fee the amount of the Development Fee paid with respect to each Franchised Restaurant for which you are signing a Franchise Agreement.
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 franchise fee is detailed in Item 5 and further explained in Item 7. Item 7 includes a table that shows the franchise fee ranges from $24,000 to $55,000, payable as a lump sum upon signing the Franchise Agreement, and is paid to the franchisor.
If a prospective franchisee enters into an Area Development Agreement to open 5 Black Bear Diner restaurants, they will pay a Development Fee of $74,500, broken down as $22,500 + $20,000 + $16,000 + $16,000. The initial franchise fee for the first restaurant under the Development Agreement is $55,000, due upon signing the Franchise Agreement. The franchise fee for each subsequent restaurant ranges from $24,000 to $45,000, depending on the number of restaurants to be developed. Black Bear Diner will credit the Development Fee paid for each restaurant against the franchise fee for each restaurant after the first.
Item 7 also notes that the franchise fee, like most payments, is generally non-refundable, although partial refunds are possible under certain conditions as described in Item 5. Black Bear Diner does not offer financing for any part of the initial investment. A prospective franchisee should carefully review Item 5 for a complete understanding of the franchise fee terms, conditions for refunds, and how the Development Fee interacts with the franchise fees for multiple locations.