Black Bear Diner Franchise Costs, Fees & Owner Salary (2023)Black Bear Diner

INVESTMENT

$1,505,000

-

$2,059,000

LOCATIONS

146

Emily

Updated

April 11, 2024

Is

Black Bear Diner

a franchise?

Yes,
Black Bear Diner
currently
accepts
franchise
applications

Black Bear Diner, founded in 1995 in Redding, California where it is headquartered, has grown into a distinguished name in the diner franchise category, known for its classic, home-style comfort food and unique dining experience. The brand began its franchising journey in 1999, extending its reach and sharing its distinctive approach to dining with more communities.

The brand stands out for its all-day breakfast, lunch, and dinner offerings, generous servings, and high-quality food, cultivating a loyal customer base of multi-generational families. Black Bear Diner's bear-themed branding, from outdoor wood carvings to cabin-themed interiors and branded merchandise, offers a unique brand experience that differentiates it from competitors.

Recognized consistently by the industry, including a spot on Entrepreneur’s Franchise 500 for five consecutive years, the franchise has established a strong presence in the family dining category.

Black Bear Diner supports its franchise partners comprehensively, from site selection and design to construction, pre-opening, and ongoing operational support, ensuring they have the tools and resources needed for success. This comprehensive support system, combined with the brand's strong cultural and value propositions, makes Black Bear Diner an attractive option for entrepreneurs looking to invest in the dining industry.

How many

Black Bear Diner

franchises

are there?

In 2022, there were
146
outlets in
the United
States, of which
85
are franchises, and
61
are corporate-owned.

What are the

Black Bear Diner

franchise

fees?

Advertising fee

2.00%

Initial Franchise Fee ($24,000 to $55,000)

The initial franchise fee for a Black Bear Diner franchise ranges between $24,000 to $55,000. This fee is fully earned when paid and is not refundable under any circumstance.

Royalty Fee (4.5% of Gross Sales)

Franchisees are required to pay a continuing royalty fee equal to four and a half percent (4.5%) of the Gross Sales of the Franchised Restaurant.

Gross Sales means the total amount of all revenues that the franchisee receives from the sale of all menu items, gift shop products, banquet and catering services, and from goods and services from all sources connected with the Franchised Restaurant.

Advertising Fee (2% to 2.5% of Gross Sales)

Franchisees are obligated to contribute towards advertising and marketing efforts. This includes a contribution of 1% of Gross Sales to the Marketing Fund and an additional 1.5% of Gross Sales for local advertising.

Note: The fees presented here can be found in the Item 5 of the Franchise Disclosure Document. For a complete list of all the fees borne by the franchisee, please consult the Franchise Disclosure Document.

How much does

it cost

to start a

Black Bear Diner

franchise?

It costs between
$1,505,000
and
$2,059,000
to start a
Black Bear Diner
franchise.

The estimated initial investment for opening a single Black Bear Diner restaurant ranges from $1,504,505 to $2,059,010. This investment encompasses various expenditures, from the initial franchise fee to leasehold improvements and equipment costs.

Below is a detailed breakdown of these costs to provide a clearer understanding of where your investment would be allocated.

Type of Expenditure Amount
Franchise Fee $24,000 - $55,000
First Month’s Rent $9,000 - $20,000
Security Deposits $7,500 - $23,000
Leasehold Improvements $666,800 - $800,000
Furniture, Fixtures & Equipment $70,000 - $84,000
Kitchen Equipment $382,935 - $466,240
Décor Package $30,100 - $53,455
Carved Bear Package $33,100 - $48,300
Initial Inventory – Food & Paper $14,000 - $20,000
Initial Inventory – Gift Shop Products $2,000 - $5,000
Insurance $7,000 - $20,000
Signage $33,900 - $54,815
Office Equipment and Supplies $1,800 - $2,200
Computer System $45,000 - $75,000
Grand Opening Advertising $5,500 - $12,000
Training Expenses $44,000 - $85,000
Licenses & Permits $7,000 - $20,000
Professional Fees $20,000 - $65,000
Additional Funds - 3 months $100,000 - $150,000
TOTAL $1,504,505 - $2,059,010

Note: The table above provides a snapshot of the main costs associated with starting the most common franchise format (as disclosed in the Item 7 of the Franchise Disclosure Document). For a complete overview of all the expenses involved with the various formats offered by the franchisor, please consult the Franchise Disclosure Document.

Does

Black Bear Diner

provide

training

to its

franchisees?

Yes,
Black Bear Diner
provides
training

Here's a detailed look at what they offer to their franchisees:

Training Program: Black Bear Diner offers a comprehensive training program that combines various learning methods, ensuring that franchisees are well-prepared with the necessary knowledge and skills to operate their diner.

Who Needs to Attend: The franchisee or the franchisee’s Primary Owner, and the person designated by the franchisee to operate the Franchised Business, must successfully complete  Black Bear Diner's  initial training program and qualify as a Certified Manager before opening the Franchised Business.

Training Content: The initial training program is structured to provide practical on-the-job training in the operation of a Black Bear Diner restaurant and will include training on maintaining brand standards in subjects such as food preparation, marketing, customer service techniques, equipment maintenance, point-of-sale system, and grand opening.

Location and Duration: The training is provided at Black Bear Diner's designated locations and comprises 320 hours of on-the-job training.

Ongoing Training: Black Bear Diner may require the Principal Trainees to attend refresher courses, seminars, and other training programs.

Does

Black Bear Diner

provides

territory

protection?

Franchisees do not receive an exclusive territory. They are granted a geographical area known as the "Protected Territory". For the typical Franchised Restaurant, the Protected Territory will encompass an approximate 3-mile radius around the Franchised Restaurant.

Within this Protected Territory, Black Bear Diner commits not to establish or grant a new franchise for the operation of a Black Bear Diner Restaurant.

However, Black Bear Diner may establish and operate, and license others to establish and operate, other businesses, including similar restaurant concepts, using other trademarks, service marks, and commercial symbols at any location either within and outside of the Protected Territory.

Can a

Black Bear Diner

franchise

be run as

a passive

investment?

For Black Bear Diner, the franchised restaurant must always be under the direct full-time supervision of either the franchisee, if they are an individual, or their general manager, if the franchisee is a business entity.

If a franchisee operates more than one Franchised Restaurant, they can delegate their management duties for each additional Franchised Restaurant to a general manager who has successfully completed the franchisor's training program. This general manager doesn't need to have an ownership interest in the Franchised Restaurant.

In conclusion, while a franchisee can delegate management duties to a trained general manager, especially if they operate multiple locations, the franchise cannot be run purely as a passive investment.

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