Black Bear Diner Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$1,546,200 - $2,349,000
Franchise Fee
$24,000
Total US Locations
162
Business Summary
Black Bear Diner operates family-style restaurants that offer signature entrees with large portions. These restaurants feature a distinctive rustic exterior and interior trade dress, including bear-themed decorations, carvings, and signage. Each Black Bear Diner location also includes a gift shop selling bear-themed and branded products. The business follows specific operating procedures and quality control programs.
Corporate History
Black Bear Diner (BBDI LLC) began as Black Bear Diners, Inc. (BBD INC), a California corporation formed in December 2001. BBD INC started offering franchises for Black Bear Diner restaurants in May 2002. In February 2016, BBD INC converted to BBDI LLC as part of a transaction to consolidate affiliated entities, reorganize company-owned restaurants, and admit new equity owners. An affiliate, Bear Tracks Holdings LLC, owns and operates 65 Black Bear Diner restaurants.
Financial Overview
Investment Range
$1,546,200 - $2,349,000
Franchise Fee (Low)
$24,000
Franchise Fee (High)
$55,000
Royalty %
4.5%
Marketing %
1%
Equipment Costs (Low)
$640,700
Equipment Costs (High)
$745,400
Working Capital
$125,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
The financial statements of Black Bear Diner (BBDI LLC) have received an unqualified opinion from its auditor, indicating that they present fairly, in all material respects, the financial position of the company. However, the auditor emphasized that Black Bear Diner is a wholly-owned subsidiary of BBD Opco LLC and has various related-party transactions. Notably, Black Bear Diner jointly and severally guarantees its parent company's term loan and revolving line of credit, which amounted to $44,000,000 in 2024 and $45,600,000 in 2023. These debt balances are not reflected in Black Bear Diner's financial statements because it is not the direct borrower.
Financing Details
Black Bear Diner (BBDI LLC) does not offer any direct or indirect financing to its franchisees. This means franchisees will need to secure their own funding for initial investment, equipment, and other obligations through third-party lenders.
Performance Metrics
Total US Locations
162
Franchised Units
92
Corporate Units
70
Avg Square Footage
5,250
Franchising Since
2002
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Black Bear Diner (BBDI LLC) has no litigation history that is required to be disclosed in Item 3 of its Franchise Disclosure Document. This means Black Bear Diner, its management, or its affiliates have not been involved in any material litigation cases that meet the disclosure requirements.
Bankruptcy History
Black Bear Diner (BBDI LLC) has no bankruptcy history required to be disclosed in Item 4 of its Franchise Disclosure Document. Neither the franchisor nor its management have been involved in any bankruptcy proceedings.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their franchise agreement, Black Bear Diner franchisees must have substantially complied with all provisions of the agreement and not be in default. They must also maintain possession of the restaurant premises, make necessary capital expenditures to remodel and redecorate the restaurant to meet current brand standards, and provide notice of their intent to renew between nine and twelve months before the current term ends. Franchisees are required to sign a new franchise agreement, which may have different terms, and meet current training requirements. A renewal fee of $5,000 and a general release of claims against Black Bear Diner are also necessary.
Training & Support Program
Franchisor Assistance
Black Bear Diner provides extensive assistance to its franchisees. Pre-opening support includes general guidelines and help with site selection, interior layout, design specifications, and equipment. Franchisees also receive the proprietary Décor Package and Carved Bear Package, along with an initial inventory of branded gift shop products. Initial training is provided for the franchisee owner and general manager. Ongoing assistance includes approximately 14 days of on-site support during the restaurant's opening, with varying numbers of representatives depending on the franchisee's experience level. Black Bear Diner also offers periodic supervision and guidance from field representatives, provides advice by telephone, email, and newsletters, and conducts additional training programs and an annual Franchisee Convention.
Initial Training Hours
350
Training Location
Company-Owned Restaurant
Ongoing Support
After opening, Black Bear Diner franchisees receive ongoing support through various channels. This includes periodic supervision and general guidance from field representatives, as well as advice by telephone, electronic mail, facsimile, and newsletters. Black Bear Diner may also send field representatives to the franchised restaurants for consultation and assistance, preparing written reports based on their quality control program. Additionally, franchisees, their general managers, and other managerial employees may be required to attend optional or mandatory additional training programs, seminars, informational classes, or annual meetings, such as the Black Bear Diner Franchise Convention and the General Manager Annual Training Meeting.
Franchise Requirements
Ideal Candidate Profile
Black Bear Diner prefers that prospective franchisees have prior restaurant management experience, given the competitive nature of the restaurant industry.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
supervisory
Territory Type
protected
Territory Size Requirements
For a typical Black Bear Diner franchised restaurant, the protected territory will encompass an approximate 3-mile radius around the restaurant.
Staffing Notes
Black Bear Diner outlines a management training program that includes modules for franchisee/general manager/assistant managers, kitchen managers, line cooks, and prep cooks, covering front-of-house procedures, kitchen management, food preparation, purchasing, cost control, accounting, marketing, and POS systems. The franchised restaurant must always be under the full-time supervision of either the individual franchisee or their general manager. For multi-unit operators, a multi-unit operations manager who has completed training is required to oversee all restaurants. Black Bear Diner maintains that it does not share or codetermine employees' essential terms and conditions of employment, and franchisees retain sole authority over their employees' wages, scheduling, duties, supervision, work rules, and hiring/discharge.