When is the initial Franchise Fee due for the first 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 Black Bear Diner's 2025 Franchise Disclosure Document, the initial franchise fee for the first franchised restaurant is $55,000. This fee is due upon signing the Franchise Agreement. This means that a prospective franchisee must pay the $55,000 when they formally agree to the terms and conditions outlined in the Franchise Agreement.
For those entering into an Area Development Agreement to open multiple Black Bear Diner locations, the FDD indicates that a Development Fee of $74,500 is required for opening 5 franchised restaurants. This fee is structured as follows: $22,500 + $20,000 + $16,000 + $16,000. The franchise fee for each additional restaurant after the first ranges from $24,000 to $45,000, depending on the number of restaurants to be developed. The amount of the Development Fee paid for each restaurant will be credited against the Franchise Fee for each subsequent location.
It is important to note that, in general, the franchise fee is non-refundable, although the FDD states that it is partially refundable under certain circumstances. Prospective franchisees should carefully review the Franchise Agreement and related documents with a business advisor or accountant to fully understand the terms and conditions, including the refund policy and payment schedule.