factual

What is the minimum amount a Black Bear Diner franchisee must spend on Grand Opening Advertising?

Black_Bear_Diner Franchise · 2025 FDD

Answer from 2025 FDD Document

dent certified public accountant selected by Franchisor and prepared at the expense of the Marketing Fund.

Franchisee acknowledges that the Marketing Fund is not a trust and Franchisor assumes no fiduciary duty in administering the Marketing Fund.

11.3 Grand Opening Advertising

Franchisee is required and agrees to spend no less than FIVE THOUSAND FIVE HUNDRED DOLLARS ($5,500.00) sometime within one (1) week prior and eight (8) weeks following the opening of its Franchised Restaurant ("Grand Opening Advertising"). In addition, you must perform opening advertising as required by this paragraph every time that Franchisee relocates the Franchised Restaurant. All materials used on Grand Opening Advert

Source: Item 23 — RECEIPT (FDD pages 56–243)

What This Means (2025 FDD)

According to Black Bear Diner's 2025 Franchise Disclosure Document, a franchisee is required to spend a minimum of $5,500 on Grand Opening Advertising. This advertising spend must occur within one week prior to and eight weeks following the restaurant's opening.

This Grand Opening Advertising expenditure is in addition to the weekly contribution of gross sales to the Marketing Fund. However, the franchisee will receive a credit towards their Local Advertising requirement. All advertising materials used for the grand opening are subject to Black Bear Diner's approval before use.

This requirement ensures that new Black Bear Diner locations make a strong initial impact in their local market. The relatively low minimum spend, compared to the overall investment, is intended to drive awareness and customer traffic during the critical launch phase. The credit towards local advertising provides some offset to the initial marketing costs.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.