When is the Local Advertising fee due for a Black Bear Diner franchise?
Black_Bear_Diner Franchise · 2025 FDDAnswer from 2025 FDD Document
| Number of | Franchise Fee | Development Fee |
|---|---|---|
| Franchised | ||
| Restaurants to be | ||
| Developed | $55,000 $45,000 $40,000 $32,000 | |
| Type of Fee(1) | Amount | Due Date |
| Royalty | 4.5% of Gross Sales(2) | Weekly |
| Type of Fee(1) |
Source: Item 6 — OTHER FEES (FDD pages 14–18)
What This Means (2025 FDD)
According to Black Bear Diner's 2025 Franchise Disclosure Document, the Local Advertising fee is due monthly. This fee is set at 1% of the restaurant's gross sales. Gross sales include all revenues from menu items, gift shop products, banquet and catering services, and any other goods or services connected to the franchise. This encompasses all sales, whether paid by cash, credit, or other means, and includes proceeds from business interruption insurance. Sales tax collected from customers and paid to taxing authorities, discounts, and the price of employee meals are excluded from gross sales.
Franchisees should budget for this ongoing monthly expense, as it directly impacts their operating costs. The funds are specifically allocated for local advertising initiatives, which aim to promote the Black Bear Diner location within its community. This regular contribution ensures a consistent stream of funding for marketing efforts, which can help drive customer traffic and increase revenue.
It is important to note that all fees listed in Item 6 of the FDD, including the Local Advertising fee, are imposed and collected by Black Bear Diner, and are non-refundable. Existing franchisees may have different fee structures than those outlined in the document. Therefore, prospective franchisees should carefully review the specific terms and conditions outlined in their franchise agreement and discuss any discrepancies with the franchisor.