How is the non-refundable fee for failing to attend the Black Bear Diner convention charged to the franchisee?
Black_Bear_Diner Franchise · 2025 FDDAnswer from 2025 FDD Document
new techniques, marketing, accounting and general operating procedures. Attendance at additional training programs and seminars shall be at Franchisee's sole expense including, without limitation, travel costs, room and board expenses and employee salaries.
Franchisor may sponsor an annual convention for its franchisees known as the Black Bear Diner Franchise Convention, at which seminars, workshops and other training may be conducted at a location designated by Franchisor. For each year that Franchisor holds the Convention, Franchisee or Franchisee's General Manager (or agreed upon upper level managerial employee), if Franchisee is a business entity, is required to attend. Attendance at the Convention will not be required for more than three (3) days during any calendar year. Franchisee agrees to pay all costs to attend the convention; however, Franchisor may elect to offset certain costs otherwise required of Franchisee based upon the level of payments received (if any) from third party suppliers pursuant
to Section 13.3. In the event, Franchisee and/or
Source: Item 23 — RECEIPT (FDD pages 56–243)
What This Means (2025 FDD)
According to the 2025 Black Bear Diner Franchise Disclosure Document, if a franchisee or their General Manager (or an agreed-upon upper-level managerial employee) fails to attend the annual Black Bear Diner Franchise Convention, Black Bear Diner has the right to charge the franchisee a non-refundable fee of $2,500. This fee is intended to cover Black Bear Diner's expenses related to the franchisee's expected attendance.
The method for charging this fee is the same manner as the Weekly Royalty Fee. The Weekly Royalty Fee is 4.5% of Gross Sales, payable weekly without any offset, credit, or deduction. Therefore, the $2,500 non-attendance fee will be charged to the franchisee in the same way that Black Bear Diner collects the weekly royalty fee.
This policy highlights the importance Black Bear Diner places on franchisee participation in the annual convention. While attendance requires franchisees to cover their own travel, room, and board, the $2,500 fee underscores the financial consequences of non-attendance. Franchisees should factor this potential cost into their operating budget and prioritize attendance at the convention to avoid the fee.