Do some suppliers pay fees to Black Bear Diner based on their dealings with franchisees?
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, some suppliers do pay fees to Black Bear Diner based on their dealings with franchisees. These payments are based on either a flat fee or a percentage of sales made to franchisees and affiliate-owned restaurants.
During the fiscal year ending December 25, 2024, Black Bear Diner received payments from suppliers ranging from approximately $200 to $239,252. These funds are intended to be used for marketing programs or to reimburse Black Bear Diner's costs for sponsoring the annual Black Bear Diner Franchise Convention and other franchisee events and services.
This arrangement is fairly common in franchising, where franchisors negotiate with suppliers on behalf of their franchisees and may receive rebates or fees in return. This can potentially benefit franchisees through better pricing or services, but it also means that Black Bear Diner has a financial incentive to approve certain suppliers over others. Prospective franchisees should inquire about how these supplier relationships are managed and how the funds received are allocated to ensure transparency and that the arrangements benefit the entire franchise system.