What is the franchise fee for a single Black Bear Diner restaurant development?
Black_Bear_Diner Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 5: INITIAL FEES]
ITEM 5 INITIAL FEES
Franchise Agreement. The initial Franchise Fee for your first Black Bear Diner restaurant is $55,000. If you already operate one or more existing Black Bear Diner restaurants, the initial Franchise Fee for your Black Bear Diner restaurant will be based on the following schedule.
Source: Item 5 — INITIAL FEES (FDD pages 13–14)
What This Means (2025 FDD)
According to Black Bear Diner's 2025 Franchise Disclosure Document, the initial franchise fee for a single restaurant is $55,000. The FDD specifies that this fee is paid as a lump sum when the Franchise Agreement is signed. Once paid, the franchise fee is considered fully earned by Black Bear Diner and is generally non-refundable. This fee compensates Black Bear Diner for training and other pre-opening obligations.
Notably, the franchise fee structure changes if a franchisee commits to developing multiple Black Bear Diner restaurants under an Area Development Agreement. In such cases, the initial franchise fee for the first restaurant remains $55,000, but subsequent restaurants have a reduced franchise fee based on the number of restaurants the franchisee agrees to develop. A development fee, which is a percentage of the franchise fee, is also required for each additional restaurant.
It's important to note that the initial franchise fee is non-refundable under any circumstances, regardless of whether the franchisee fulfills their obligations under the agreement. This is a standard practice in franchising, as the fee covers the franchisor's initial costs of granting the franchise and providing initial training and support. Prospective franchisees should carefully consider their ability to meet the financial and operational requirements of the franchise before signing the Franchise Agreement and paying the initial franchise fee.