When is the Black Bear Diner franchisee's Marketing Fund Contribution due?
Black_Bear_Diner Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee's Marketing Fund Contribution shall be made at the same time and in the same manner as its Royalty Fee payment.
Source: Item 23 — RECEIPT (FDD pages 56–243)
What This Means (2025 FDD)
According to the 2025 Black Bear Diner Franchise Disclosure Document, the Marketing Fund Contribution is due at the same time and in the same manner as the Royalty Fee payment. Currently, Black Bear Diner requires franchisees to contribute one percent (1%) of their Gross Sales to the Marketing Fund, although the franchisor reserves the right to increase this amount up to three percent (3%) of Gross Sales with thirty (30) days written notice.
All Royalty Fee payments, Marketing Fund Contributions, product purchases, and other amounts due to Black Bear Diner must be paid through an Electronic Depository Transfer Account. Franchisees are required to establish an account providing for electronic funds transfer, giving Black Bear Diner access to receive payments. Franchisees must execute any necessary documents required by the banks to implement this Electronic Deposit Transfer Account and cannot close the account without Black Bear Diner's approval.
This electronic transfer requirement ensures that Black Bear Diner receives payments promptly and efficiently. The franchisee's obligation to maintain the Electronic Deposit Transfer Account and obtain approval before closing it underscores the importance of adhering to the franchisor's payment procedures. Prospective franchisees should be prepared to set up and maintain this type of account as part of their financial obligations.