What were the advertising revenues from related parties for Black Bear Diner in 2024?
Black_Bear_Diner Franchise · 2025 FDDAnswer from 2025 FDD Document
ovides additional information about the Companyowned and franchised restaurants operating as of December 25, 2024 and December 27, 2023:
| Cash flows from investing activities: | | | |---|---|---| | ( 168,891) | ( 296,015) | | | Purchases of property and equipment | | | | Net cash used in investing activities | ( 168,891) | ( 296,015) | 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 other brand
Source: Item 23 — RECEIPT (FDD pages 56–243)
What This Means (2025 FDD)
The 2025 Franchise Disclosure Document for Black Bear Diner does not explicitly state the advertising revenues received from related parties in 2024. However, it does detail how the company manages its National Advertising Fund (NAF). Black Bear Diner receives funds from its restaurants, approximating 1.00% of revenue, which are then used for national, regional, and local advertising and marketing initiatives.
It is important to note that the funds received from franchisees may be used to reimburse the company for advertising-related costs, including salaries and other internal costs of administering the NAF. For the year ending December 25, 2024, these reimbursements totaled $172,139. These reimbursements are then netted within payroll and benefits expenses on the statements of income.
While the FDD provides information on advertising fund management and franchisee contributions, it lacks a specific figure for advertising revenues derived from related parties. A prospective franchisee should directly ask Black Bear Diner's management about the specific amount of advertising revenue received from related parties to gain a clearer understanding of the advertising fund's financial structure.