What did the allocated administrative services receivable within the related-party receivable total for Black Bear Diner as of December 25, 2024?
Black_Bear_Diner Franchise · 2025 FDDAnswer from 2025 FDD Document
the Company. The Company recognized $8,345,526 and $8,041,863 of royalty income from BTH for the years ended December 25, 2024 and December 27, 2023, respectively, which is included in the statements of income.
NOTE 9 - RELATED-PARTY TRANSACTIONS (Continued)
Allocated Administrative Services: The Company also shares certain management and administrative functions with BTH. The Company charged BTH the amount of $3,415,177 and $3,153,562 for allocable share of management and administrative expenses and is rec for the years ended December 25, 2024 and December 27, 2023, respectively, which is included with payroll and benefits expenses in the statements of income.
Related-Party Receivable: The related-party receivable is unsecured, interest free and repayable on demand. The related-party receivable at any point in time generally consists of any combination of receivables from royalty and advertising fees, receivables from a
Source: Item 23 — RECEIPT (FDD pages 56–243)
What This Means (2025 FDD)
According to Black Bear Diner's 2025 Franchise Disclosure Document, the allocated administrative services receivable included within the related-party receivable totaled $254,205 as of December 25, 2024. The related-party receivable is unsecured, interest-free, and repayable on demand.
This receivable generally consists of a combination of items, including receivables from royalty and advertising fees, receivables from the allocation of shared management and administrative functions, gift card receivables from sales at Bear Tracks Holdings LLC (BTH) owned restaurants, and periodic working capital advances that Black Bear Diner may make to entities under common control, such as BTH.
The FDD indicates that the amounts outstanding as of December 25, 2024, were collected in full subsequent to the year-end. This detail provides insight into the financial interactions between Black Bear Diner and its related entities, specifically regarding administrative services.