What was the average 4-Wall EBITDA for Black Bear Diner restaurants in fiscal year 2023?
Black_Bear_Diner Franchise · 2025 FDDAnswer from 2025 FDD Document
ur in operation of your Restaurants.
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| Fiscal Year 2024 Fiscal Year 2023 | ||||
|---|---|---|---|---|
| Number of Company-Affiliated | 65 | 63 | ||
| Restaurants | Amount | % | ||
| Gross Sales (1) | Average $2,785,159 Median $2,756,484 Highest $4,626,764 Lowest $1,478,223 | Average $2,853,345 Median $2,776,833 Highest $4,921,303 Lowest $1,453,703 | ||
| Cost of Goods Sold (2) | Average | Average | Average | Average |
| $772,790 | 27.8% | $796,031 | 27.9% | |
| Median | Median | Median | Median | |
| $751,026 | 27.9% | $785,621 | 27.9% | |
| Highest | Highest | Highest | Highest | |
| $1,284,091 | 30.7% | $1,414,411 | 30.7% | |
| Lowest | Lowest | Lowest | Lowest | |
| $453,099 | 25.4% | $426,274 | 25.6% | |
| Labor (3) | Average $966,715 Median $955,314 Highest | Average 34.7% Median 35.3% | Average $973,101 Median $946,979 Highest | Average 34.1% Median 34.3% |
| $1,527,185 | Highest | $1,619,561 | Highest | |
| Lowest | 43.7% | Lowest | 44.1% | |
| $526,855 | Lowest | $527,589 | Lowest | |
| 4-Wall EBITDA (4) | Average $360,964 | 27.0% Average 13.0% | Average $407,370 | 27.9% Average 14.3% |
| * These amounts do not include royalties and advertising contributions or minimum local advertising expenditures payable | Median 364,431 Highest $1,010,810 | Median 13.3% | Median 403,272 Highest $1,026,324 | Median 14.5% |
| by franchisees. See Note 4 | Lowest -$171,982 | H |
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 46–52)
What This Means (2025 FDD)
According to Black Bear Diner's 2025 Franchise Disclosure Document, the average 4-Wall EBITDA for company-affiliated restaurants during the fiscal year 2023 was $407,370. This figure represents the average diner profit, calculated by subtracting the Cost of Goods Sold, Labor Cost, and Operating and Occupancy costs from Gross Sales. It's important to note that this amount does not include royalties, advertising contributions, or minimum local advertising expenditures that a franchisee would typically incur. The 4-Wall EBITDA represents 14.3% of gross sales.
The FDD specifies that the 4-Wall EBITDA includes gross sales minus the cost of goods sold, labor costs, and operating and occupancy costs. Operating costs encompass expenses like restaurant cleaning, supplies, repairs, utilities, software fees, credit card fees, delivery commissions, and various operating licenses. Occupancy costs cover rent, property taxes, insurance, and common area maintenance. This provides a comprehensive view of the costs considered in calculating the 4-Wall EBITDA.
It is important to remember that the financial performance representation notes that individual results may vary, and there is no guarantee that a franchisee will achieve the same levels of sales or cost results. The FDD also states that these figures are based on the performance of 63 affiliate-owned and operated Black Bear Diner Restaurants that were open and operating during the entire 2023 fiscal year, which ended on December 27, 2023. Prospective franchisees should conduct their own independent investigation of costs and expenses, and consider speaking with current or former franchisees to gather additional information.