What was the amortization of intangible assets for Black Bear Diner in 2023?
Black_Bear_Diner Franchise · 2025 FDDAnswer from 2025 FDD Document
and December 28, 2022 was $86,353 and $70,347, respectively.
NOTE 3 - INTANGIBLE ASSETS AND GOODWILL
Intangible assets consist of the following:
| Life | December 27, | December 28, | |
|---|---|---|---|
| in Years | 2023 | 2022 | |
| Intangible assets subject to amortization: | |||
| Trade name | 20 | $ 35,100,000 |
Source: Item 23 — RECEIPT (FDD pages 56–243)
What This Means (2025 FDD)
According to the 2025 Black Bear Diner Franchise Disclosure Document, the amortization expense on intangible assets subject to amortization was $3,017,051 for the year ended December 27, 2023. This figure includes $366,211 of amortization expense related to a related party trademark license agreement for the same period. Amortization is the process of expensing the cost of an intangible asset over its useful life, similar to depreciation for tangible assets.
For a prospective Black Bear Diner franchisee, understanding amortization is crucial because it affects the company's reported profits and overall financial health. Intangible assets, such as trademarks and licenses, are significant for a franchise system like Black Bear Diner. The related party trademark license agreement suggests transactions between Black Bear Diner and its related entities, which franchisees should be aware of.
The FDD also notes that the company's financial statements require management to make estimates and assumptions that affect the reported amounts of assets and liabilities, including the valuation of intangible assets. This means that the actual amortization expense could differ from the estimated amount. Franchisees should consider these estimates and assumptions when evaluating the financial performance of Black Bear Diner.
It is also important to note that the company utilizes a 52/53-week fiscal year ending on the last Wednesday prior to December 31. The company's financial statements reflect accounts and balances as of and for the fiscal year ended December 27, 2023, which contained 52 weeks.