How should the Black Bear Diner franchisee make the Marketing Fund Contribution?
Black_Bear_Diner Franchise · 2025 FDDAnswer from 2025 FDD Document
, then Franchisee shall reimburse Franchisor for the amount of those taxes, fees or assessments within 30 days after receipt of an invoice from Franchisor.
3.3 Marketing Fund Contribution
Franchisor has established and administers a Black Bear Diner Marketing Fund as provided in Section 11.2. Franchisor reserves the right to require Franchisee to contribute an amount not to exceed three percent (3%) of the Gross Sales of the Franchised Restaurant for each week to the
Marketing Fund ("Marketing Fund Contribution"). Currently, Franchisor requires Franchisee to contribute one percent (1%) of its Gross Sales to the Marketing Fund. Franchisor agrees to provide Franchisee with thirty (30) days written notice prior to increasing the amount of the Marketing Fund Contribution. The Marketing Fund Contribution shall be made at the same time and in the same manner as the Royalty Fee payment.
3.4 Taxes
In addition to the Royalty Fee payment, Franchise Fee and other amounts due under the terms of this Agreement, Franchisee shall pay to Franchisor an amount equal to any sales, gross receipts, excise tax or similar tax imposed on Franchisor as a result of the operation of the Franchised Restaurant, unless the tax is an income tax (or its equivalent) otherwise payable by Franchisor. In no circumstances shall Franchisee have any obligation hereunder for any tax assessed which is based upon the net income of Franchisor.
3.5 Electronic Transfer
Franchisor requires all Royalty Fee payments, Marketing Fund Contributions, product purchases and other amounts due to Franchisor to be paid through an Electronic Depository Transfer Account. Franchisee agrees to establish an account providing for electronic funds transfer, and Franchisor shall have access to such account for the purpose of receiving amounts due to Franchisor from Franchisee. Franchisee agrees to execute any documents as Franchisor's or Franchisee's bank requires in order to implement the Electronic Deposit Transfer Account.
Source: Item 23 — RECEIPT (FDD pages 56–243)
What This Means (2025 FDD)
According to the 2025 Black Bear Diner Franchise Disclosure Document, franchisees are required to make Marketing Fund Contributions via Electronic Depository Transfer Account. This means the franchisee must establish an account that allows for electronic funds transfer, granting Black Bear Diner access to withdraw the necessary amounts.
The Marketing Fund Contribution is currently set at one percent (1%) of the restaurant's Gross Sales, paid weekly. However, Black Bear Diner retains the right to increase this contribution up to a maximum of three percent (3%) of Gross Sales per week, providing the franchisee with at least thirty (30) days' written notice before any increase. This contribution is made at the same time and in the same manner as the Royalty Fee payment.
This electronic transfer system ensures that Black Bear Diner can efficiently collect the Marketing Fund Contributions, which are used for advertising and marketing initiatives. Franchisees must agree not to close this Electronic Deposit Transfer Account without prior approval from Black Bear Diner, highlighting the importance of maintaining this payment method throughout the franchise agreement.