Is there a fee associated with the Black Bear Diner Addendum to the Franchise Agreement?
Black_Bear_Diner Franchise · 2025 FDDAnswer from 2025 FDD Document
s wherever located, including customers that may be located within or outside the Protected Area; and (4) engage in any activities not expressly forbidden by this Agreement.
3. FEES
In addition to other fees as may be required under the terms of this Agreement, Franchisee agrees to pay Franchisor the following fees and amounts at the times specified herein:
3.1 Initial Franchise Fee
Upon execution of this Agreement, Franchisee shall pay a non-refundable Franchise Fee to Franchisor of ___________________________________ DOLLARS ($_________) at the time of signing the Franchise Agreement. The Franchise Fee shall be deemed fully earned at the time paid and is non-refundable, except as otherwise provided in Section 8.3 of this Agreement. The Franchise Fee is earned upon receipt and is payment, in part, for costs and expenses incurred by Franchisor in granting the franchise.
3.2 Weekly Royalty Fee
Franchisee shall pay without offset, credit or deduction of any nature to Franchisor, so long as this Agreement shall be in effect, a weekly Royalty Fee equal to four and one-half percent (4.5%) of Gross Sales. If any taxes, fees or assessments are imposed on Franchisor by reason of its acting as franchisor or licensing the Marks under this Agreement, then Franchisee shall reimburse Franchisor for the amount of those taxes, fees or assessments within 30 days after receipt of an invoice from Franchisor.
3.3 Marketing Fund Contribution
Franchisor has established and administers a Black Bear Diner Marketing Fund as provided in Section 11.2.
Source: Item 23 — RECEIPT (FDD pages 56–243)
What This Means (2025 FDD)
Based on the 2025 Black Bear Diner Franchise Disclosure Document, there is no mention of a specific fee associated with an addendum to the Franchise Agreement. However, the document does mention several fees that franchisees may be required to pay. These include the initial franchise fee, weekly royalty fee, marketing fund contributions, and a relocation fee. Additionally, a renewal fee of $5,000 is required when signing the then-current form of the franchise agreement for a renewal term.
Prospective franchisees should note that the absence of a specific addendum fee in the provided excerpts does not guarantee that such a fee does not exist. It is possible that this fee is disclosed elsewhere in the FDD or in a separate agreement.
Therefore, it is crucial for potential Black Bear Diner franchisees to carefully review the entire Franchise Disclosure Document and all related agreements, and to seek clarification from the franchisor regarding any potential fees or costs associated with addenda or modifications to the Franchise Agreement.