Are Black Bear Diner franchisees required to accept major credit cards?
Black_Bear_Diner Franchise · 2025 FDDAnswer from 2025 FDD Document
Merchant and Gift Cards. We require all franchisees to accept major credit cards for customer purchases. You may be required to invest in additional equipment and incur fees from the credit card vendors that we designate. We also have an electronic gift card program and you must participate in this program. As part of the gift card program you and other franchisees will issue stored value cards to customers for use as gift certificates, promotional cards and restaurant credit. When a gift card is redeemed we will pay the redeeming franchisee the amount of the purchase from a central gift card fund that we maintain.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 22–26)
What This Means (2025 FDD)
According to the 2025 Black Bear Diner Franchise Disclosure Document, franchisees are required to accept major credit cards for customer purchases. This is a fairly standard practice in the franchise industry, as it provides convenience for customers and can increase sales. Black Bear Diner also has an electronic gift card program in which franchisees must participate.
As part of accepting credit cards, the FDD states that franchisees may be required to invest in additional equipment and incur fees from the credit card vendors that Black Bear Diner designates. This means franchisees will need to factor in these potential costs when budgeting for their franchise. The electronic gift card program requires franchisees to issue stored value cards to customers for use as gift certificates, promotional cards, and restaurant credit.
When a gift card is redeemed at a Black Bear Diner location, the franchisee will be paid the amount of the purchase from a central gift card fund maintained by Black Bear Diner. This centralized system ensures that franchisees are reimbursed for the value of the gift cards they accept, simplifying the process and reducing the administrative burden on individual franchisees.