Black Bear Diner Franchise
Cost, fees, owner earnings, closure rate and litigation for a Black Bear Diner franchise — pulled from the franchisor's own public FDD (2021), not its sales material.
Disclosure honesty
Black Bear Diner discloses earnings (Item 19) — but the grade is how honestly. We graded it B.
What their own earnings claim actually says
Gross sales data for 70 company-affiliated and 88 franchised restaurants open full fiscal 2025. Median sales $2.66-2.70M. Cost of goods ~28%, labor ~35%, 4-wall EBITDA ~12% (before royalties/ads).
What a Black Bear Diner franchise actually costs to run
| Fee | Disclosed | Where it comes from |
|---|---|---|
| Initial franchise fee | $55,000 | Item 5 — paid up front, before you open |
| Royalty | 4.5% of gross sales | Item 6 — charged on revenue, not profit |
| Advertising fund | 2% of gross sales | Item 6 — brand marketing, spent at the franchisor's discretion |
| Total recurring fees | 6.5% of gross sales | Before rent, labor, food or debt service |
| Total initial investment | $1,495,700 – $2,238,600 | Item 7 — franchisor's own low/high estimate |
Royalty 4.5% Gross Sales weekly; Marketing Fund 1% (up to 3% possible); Local Advertising 1%; Grand Opening $5,500+
Royalty and ad-fund percentages are charged on gross sales — an owner pays them whether or not the location is profitable.
Black Bear Diner system size and owner turnover
| Total outlets | 169 |
| Ceased operations | 2 |
| Terminated by franchisor | 0 |
| Transferred to new owners | 3 |
| Closure rate | 1.2% of outlets |
2 ceased ops, 0 terminations in 2025; low failure indicators but small sample.
From Item 20 of the FDD 2021. Terminations and ceased operations are the franchisor's own count of owners who stopped — the number the sales pitch leaves out.
Is Black Bear Diner worth it? — how it compares to 164 similar franchises
| Ongoing fees | 6.5% of sales | lower than most (median 8%) |
| Startup cost | from $1,495,700 | pricier than 90% of peers |
| Disclosure honesty | Grade B | more honest than 85% of quick service restaurants franchises |
| Closure rate | 1.2% of outlets | about average |
| Disclosed lawsuits | 0 | fewer than most |
Benchmarked against every quick service restaurants franchise we've graded from public FDDs — the context the franchisor's pitch never gives you.
Owner take-home for a Black Bear Diner
The franchisor's framing: Gross sales data for 70 company-affiliated and 88 franchised restaurants open full fiscal … We reconstruct what an owner actually keeps, from their own FDD.
- Reconstructed owner P&L — net take-home after royalty, ad fund, rent, labor & debt
- Break-even timeline + cash-on-cash ROI
- Full fee stack + required-purchase markups
- Decoded real failure / closure rate
- How it ranks vs comparable franchises
- Validation-call playbook — the exact questions to ask
See a full sample report → · 30-day guarantee
Black Bear Diner franchise — frequently asked
- How much does a Black Bear Diner franchise cost?
- The FDD lists a total initial investment of about $1,495,700–$2,238,600, including a $55,000 initial franchise fee.
- How much do Black Bear Diner franchise owners make?
- Gross sales data for 70 company-affiliated and 88 franchised restaurants open full fiscal 2025. Median sales $2.66-2.70M. Cost of goods ~28%, labor ~35%, 4-wall EBITDA ~12% (before royalties/ads). We grade this disclosure B for honesty.
- What are the Black Bear Diner franchise fees?
- Black Bear Diner's FDD discloses a $55,000 initial franchise fee, a 4.5% royalty on gross sales, a 2% advertising-fund contribution, for roughly 6.5% of gross sales in recurring fees before rent, labor, or debt service. Royalty 4.5% Gross Sales weekly; Marketing Fund 1% (up to 3% possible); Local Advertising 1%; Grand Opening $5,500+
- What is the Black Bear Diner franchise profit margin?
- Black Bear Diner does not publish a franchisee net-profit margin — almost no franchisor does. What Item 19 actually shows: Gross sales data for 70 company-affiliated and 88 franchised restaurants open full fiscal 2025. Median sales $2.66-2.70M. Cost of goods ~28%, labor ~35%, 4-wall EBITDA ~12% (before royalties/ads). Recurring fees alone take about 6.5% of gross sales, before rent, labor, food or debt service. Margin has to be reconstructed from the disclosure, not read off it.
- What is the Black Bear Diner franchise failure rate?
- 2 ceased ops, 0 terminations in 2025; low failure indicators but small sample.
- How many Black Bear Diner locations are there?
- Black Bear Diner's FDD reports 169 total outlets, with 2 that ceased operations in the most recent reporting year and 3 transferred to new owners. Item 20 is where system health shows up before the marketing does.
- Does Black Bear Diner have complaints or lawsuits?
- Black Bear Diner discloses no material litigation in Item 3 of the filing we reviewed. That's a positive signal, though it covers only what the franchisor is required to report.
- Is a Black Bear Diner franchise worth it?
- It depends on the numbers, not the pitch. Black Bear Diner scores B on disclosure honesty, carries about 6.5% of sales in ongoing fees. Get the real owner take-home before you sign.
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Compare Black Bear Diner to similar franchises
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Source: WI DFI Franchise Registration (2021). FranchiseValidate is independent and not affiliated with Black Bear Diner or its franchisor. Figures are extracted from the franchisor's own public disclosure document; verify against the current FDD before any decision.