What were the advertising and related expenses for Black Bear Diner in 2023?
Black_Bear_Diner Franchise · 2025 FDDAnswer from 2025 FDD Document
United States of America. The following table provides additional information about the Companyowned and franchised restaurants operating as of December 27, 2023 and December 28, 2022:
| 2023 | 2022 | |
|---|---|---|
| Franchised restaurants | 91 | 88 |
| Company-owned restaurants | 65 | 65 |
| Total | 156 | 153 |
The Company-owned restaurants are operated by Bear Tracks Holdings LLC (BTH), an entity under common control with the Company. The Company and BTH are owned by BBD Opco LLC (Parent). BBD Opco LLC is owned by BBD Intermediate Holdco, LLC (Intermediate) and for which Intermediate is ultimately owned by BBD Holdco LLC (Holdco).
The Company also operates a national advertising fund (NAF) which administers national, regional, and local advertising and marketing initiatives for the brand. The Company receives funds from Black Bear Diner branded restaurants approximating 1.00% of revenue. The Company physically segregates these funds to ensure that the funds are utilized specifically for advertising and oth
Source: Item 23 — RECEIPT (FDD pages 56–243)
What This Means (2025 FDD)
According to Black Bear Diner's 2025 Franchise Disclosure Document, the company operates a national advertising fund (NAF) that manages advertising and marketing initiatives. Black Bear Diner restaurants contribute approximately 1.00% of their revenue to this fund. The company segregates these funds for advertising and brand development. In 2023, reimbursements from the NAF for the company's costs, including salaries and internal costs of administering the NAF, totaled $118,881. These reimbursements are netted within payroll and benefits expenses on the statements of income.
This means that while franchisees contribute a percentage of their revenue to the NAF, some of those funds are used to reimburse Black Bear Diner for its internal costs related to administering the fund. This is a fairly common practice in franchising, as the franchisor often incurs costs in managing the advertising and marketing efforts for the entire system.
Prospective franchisees should be aware that the $118,881 figure represents only the reimbursements to the company for its internal costs. It does not represent the total amount spent on advertising and promotional activities in 2023. The document indicates that all other advertising and promotional costs are expensed in the period incurred, but it does not provide a specific total for those expenses. A prospective franchisee should request a detailed accounting of the NAF to understand the total advertising expenditure and how the funds are being used to promote the Black Bear Diner brand.
Additionally, franchisees are required to spend a minimum of 1% of their previous month's gross sales on local advertising, which is separate from the national advertising fund contributions. Franchisees must also spend no less than $5,500 on grand opening advertising within a specified timeframe around their restaurant opening. These local and grand opening advertising expenses are in addition to the 1% contribution to the NAF.