What purchasing and pricing arrangements does Black Bear Diner maintain for fountain beverages?
Black_Bear_Diner Franchise · 2025 FDDAnswer from 2025 FDD Document
Fountain Beverages. We currently maintain purchasing and pricing arrangements for the supply of fountain and packaged beverages including soft drinks, teas, waters, isotonics, energy drinks, juices, juice drinks, dairy-based and coffee-based beverages. Pepsi and Dr. Pepper are the only approved beverage lines for your Franchised Restaurant. You must feature and exclusively purchase your requirements of beverage products from full-line suppliers of Pepsi and Dr. Pepper
products. Certain funds will be paid by beverage suppliers directly to qualifying franchisees and others to us. These funds may be designated for general and in-store advertising, system-wide promotions and/ or franchise conventions.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 22–26)
What This Means (2025 FDD)
According to Black Bear Diner's 2025 Franchise Disclosure Document, the company maintains purchasing and pricing arrangements for fountain and packaged beverages, including soft drinks, teas, waters, isotonics, energy drinks, juices, juice drinks, dairy-based, and coffee-based beverages. Franchisees are required to exclusively purchase beverage products from full-line suppliers of Pepsi and Dr. Pepper, as these are the only approved beverage lines for the franchised restaurant.
Certain funds may be paid by beverage suppliers directly to qualifying franchisees and to Black Bear Diner. These funds can be designated for general and in-store advertising, system-wide promotions, and/or franchise conventions. This arrangement ensures that franchisees have access to established beverage brands and potentially benefit from negotiated pricing and marketing support.
This requirement means a prospective franchisee cannot choose alternative beverage brands or suppliers without approval. While this limits a franchisee's autonomy in sourcing beverages, it also provides the advantage of pre-negotiated pricing and potential marketing funds, streamlining operations and potentially reducing costs. Franchisees should inquire about the specific terms of these purchasing and pricing arrangements, including the process for allocating marketing funds and the criteria for qualifying for direct payments from beverage suppliers.