When is the Franchise Fee due for the first franchised Black Bear Diner restaurant?
Black_Bear_Diner Franchise · 2025 FDDAnswer from 2025 FDD Document
al investment.
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- Development Fee. 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.
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- Other Expenditures. The balance of your initial investment for the first Franchised Restaurant is as stated in the preceding table.
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 initial franchise fee for the first franchised restaurant is $55,000 and is due upon signing the Franchise Agreement. This fee is generally nonrefundable, although it may be partially refundable under certain circumstances as detailed in Item 5 of the FDD. Black Bear Diner does not offer financing for any part of the initial investment.
If a prospective franchisee enters into a Development Agreement to open 5 Black Bear Diner restaurants, they will pay a Development Fee of $74,500. The franchise fee for each additional restaurant ranges from $24,000 to $45,000, depending on the number of restaurants to be developed. For each restaurant after the first, Black Bear Diner will credit the Development Fee amount paid against the Franchise Fee for each restaurant for which the franchisee is signing a Franchise Agreement.
In addition to the franchise fee, the estimated initial investment for a Black Bear Diner franchise ranges from $1,546,200 to $2,349,000. This total includes various costs such as leasehold improvements, furniture, kitchen equipment, initial inventory, insurance, signage, and additional funds for the first three months of operation. These additional costs are typically paid to third parties as arranged.