What does the Franchise Fee for Black Bear Diner compensate for?

According to Black Bear Diner's 2025 Franchise Disclosure Document, the Franchise Fee is compensation for training and other preopening obligations. The initial Franchise Fee for a single Black Bear Diner restaurant is $55,000. However, the actual initial Franchise Fee can range from $24,000 to $55,000, depending on the number of Black Bear Diner restaurants the franchisee commits to developing. This fee is paid in a lump sum when the Franchise Agreement is signed.

Black Bear Diner deems the Franchise Fee fully earned upon receipt, and it is generally non-refundable. This means that once the fee is paid, it will not be returned to the franchisee under any circumstances, even if the restaurant does not open or the agreement is terminated. This is a standard practice in the franchise industry, as the franchisor incurs costs from the moment the agreement is signed.

For franchisees who plan to develop multiple Black Bear Diner restaurants under an Area Development Agreement, the Franchise Fee for each restaurant is determined by a schedule based on the number of restaurants the franchisee agrees to develop. For example, the Franchise Fee for 8 or more restaurants is $24,000. Prospective franchisees should carefully consider their development plans and financial capabilities before committing to an Area Development Agreement, as the Development Fee is also non-refundable.