How often is the Royalty fee for a Black Bear Diner franchise due?
Black_Bear_Diner Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee(1) | Amount | Due Date |
|---|---|---|
| Royalty | 4.5% of Gross Sales(2) | Weekly |
| Type of Fee(1) | Amount | Due Date |
Explanatory Notes:
-
- "Gross Sales" means the total amount of all revenues that you receive from the sale of all menu items, Gift Shop Products, banquet and catering services and from goods and services from all sources in any way connected with the Franchised Restaurant whether for check, cash, credit or otherwise including, without limitation, all proceeds from any business interruption insurance less sales tax collected from customers and paid to the appropriate
taxing authorities, discounts deducted from the prices charged and the price of employees' meals actually reported and paid.
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 royalty fee is due weekly. The royalty is 4.5% of the gross sales. Gross sales include all revenues from menu items, gift shop products, banquet and catering services, and other goods and services connected to the franchised restaurant. This includes revenues from cash, credit, or other forms of payment.
The gross sales calculation does allow for some deductions. Specifically, sales tax collected from customers and paid to taxing authorities can be deducted. Additionally, discounts deducted from prices charged and the price of employee meals actually reported and paid can be subtracted from gross sales.
Franchisees should note that the weekly royalty payment schedule requires careful tracking of gross sales and timely remittance of the required fees. Failing to pay on time may result in late payment interest of 18% of the overdue amount, calculated daily, or the maximum rate permitted by law, whichever is less.