How are most of the payments from suppliers to Black Bear Diner calculated?
Black_Bear_Diner Franchise · 2025 FDDAnswer from 2025 FDD Document
olume discounts. Some suppliers pay fees to us based on their actual or prospective dealings with you, other franchisees and our affiliates. Most of these payments are based on a flat fee amount while others are calculated based on sales of products to you and our affiliate-owned restaurants. During our last fiscal year ended December 25, 2024, we received payments ranging from approximately $200 to $239,252 from various suppliers in consideration of purchases made by franchisees. Unless such rebates and revenue are earmarked for marketing programs or other purposes, we intend to utilize such the rebates and revenue for the reimbursement of our costs of sponsoring the annual Black Bear Diner Franchise Convention and for other franchisee eve
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 22–26)
What This Means (2025 FDD)
According to the 2025 Black Bear Diner Franchise Disclosure Document, Black Bear Diner negotiates purchase arrangements with suppliers for the benefit of franchisees, covering price, specifications, payment, and volume discounts. Some suppliers pay fees to Black Bear Diner based on their dealings with franchisees and affiliate-owned restaurants. Most of these payments are based on a flat fee amount, while others are calculated based on sales of products to franchisees and affiliate-owned restaurants.
During the fiscal year ended December 25, 2024, Black Bear Diner received payments ranging from approximately $200 to $239,252 from various suppliers due to franchisee purchases. Unless these rebates and revenues are specifically designated for marketing programs or other purposes, Black Bear Diner intends to use them to reimburse the costs of sponsoring the annual Black Bear Diner Franchise Convention and for other franchisee events and services.
This arrangement means that while franchisees benefit from negotiated pricing and discounts, a portion of their purchases indirectly contributes to Black Bear Diner's revenue. This revenue is then used to fund franchisee-related events and services, potentially creating a beneficial cycle for the franchise system. Prospective franchisees should inquire about the specific criteria for allocating these funds and how they directly benefit from these supplier payments.