Black Bear Diner Franchise FDD, Profits & Costs (2025)
Black Bear Diner was founded in 1995 by Bruce Dean and Bob Manley in Mount Shasta, California. The founders aimed to create a diner that would serve as a community hub, offering home-cooked meals in a welcoming atmosphere, which led to the adoption of the distinctive black bear theme.
The franchise, headquartered in Redding, California, began its franchising journey in 2002, expanding its footprint beyond its original location. As of 2023, Black Bear Diner has grown to 156 locations across 14 states, indicating a consistent growth trajectory over the years.
Black Bear Diner differentiates itself in the competitive dining industry through its unique thematic decor, generous portion sizes, and a menu that emphasizes home-style, comfort food.
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Initial Investment
How much does it cost to start a Black Bear Diner franchise? It costs on average between $1,505,000 – $2,059,000 to start a Black Bear Diner franchised restaurant.
This includes costs for construction, equipment, inventory, and initial operating expenses. The exact amount depends on various factors, including the type of restaurant you choose, the location, and whether the franchisee chooses to lease or purchase the property.
| 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 |
Average Revenue (AUV)
How much revenue can you make with a Black Bear Diner franchise? A Black Bear Diner franchised restaurant makes on average $2,681,000 in revenue (AUV) per year.
Here is the extract from the Franchise Disclosure Document:
This compares to $1,739,000 yearly revenue for similar breakfast franchises. Below are 10 Black Bear Diner competitors as a comparison:
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Black Bear Diner Franchise Disclosure Document
Frequently Asked Questions
How many Black Bear Diner locations are there?
As of the latest data, Black Bear Diner operates 156 locations across the United States. Of these, 91 are franchise-owned, and 65 are company-owned. This count reflects the brand’s recent growth, as they have opened new locations consistently, particularly in Texas and other states outside California
What is the total investment required to open a Black Bear Diner franchise?
The total investment required to open a Black Bear Diner franchise ranges from $1,505,000 to $2,059,000.
What are the ongoing fees for a Black Bear Diner franchise?
Black Bear Diner franchisees pay a 5% royalty fee on gross sales, supporting operational resources and brand development. Additionally, they contribute a 2% marketing fee for both national and local advertising, aimed at enhancing brand visibility and customer attraction across all franchise locations.
What are the financial requirements to become a Black Bear Diner franchisee?
To qualify as a Black Bear Diner franchisee, candidates need a minimum net worth of $1.5 million. Additionally, they must have at least $500,000 in liquid capital to cover initial expenses, working capital, and operational costs until the business stabilizes. These financial requirements ensure that franchisees are well-prepared to invest in and maintain the brand’s standards and operational efficiency.
How much can a Black Bear Diner franchise owner expect to earn?
The average gross sales for a Black Bear Diner franchise are approximately $2.68 million per location. Assuming a 15% operating profit margin, $2.68 million yearly revenue can result in $402,000 EBITDA annually.
Who owns Black Bear Diner?
Black Bear Diner is primarily owned by GreyLion Capital, a private equity firm that acquired a significant stake in the company. GreyLion’s investment supports Black Bear Diner’s growth initiatives, particularly its expansion into new regions and further development of franchise locations.
Disclaimer
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