What was the average 4-Wall EBITDA for Black Bear Diner restaurants in fiscal year 2024?
Black_Bear_Diner Franchise · 2025 FDDAnswer from 2025 FDD Document
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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 2024 was $360,964. This figure represents the average company-operated 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 pay. The 4-Wall EBITDA is expressed as 13.0% of gross sales. The highest 4-Wall EBITDA was $1,010,810 and the lowest was -$171,982.
This financial performance representation is based on the results of 65 affiliate-owned and operated Black Bear Diner Restaurants that were open and operating during the full 2024 fiscal year, which ended on December 25, 2024. The FDD emphasizes that individual results may vary, and there is no guarantee that a franchisee will achieve the same levels of sales or cost results. The document also clarifies that the information provided is unaudited and does not reflect all costs that a franchisee will incur.
Prospective franchisees should understand that the 4-Wall EBITDA figure is a measure of restaurant-level profitability before considering certain franchisee-specific expenses. To get a more complete picture of potential earnings, franchisees should factor in royalties (4.5% of Gross Sales), advertising contributions (1% of Gross Sales), and minimum local advertising expenditures (1% of Gross Sales), as these are expenses that company-affiliated restaurants do not directly incur in the same way. It is also important to conduct an independent investigation of costs and expenses, potentially by consulting current or former franchisees listed in the FDD.
Given that the provided EBITDA figures are from company-affiliated restaurants, it is crucial for potential franchisees to understand how these figures might translate to a franchised operation. While the FDD states that company-affiliated restaurants pay royalties and advertising contributions, the 4-Wall EBITDA does not account for these amounts. Therefore, franchisees need to carefully consider these additional expenses when evaluating the potential profitability of a Black Bear Diner franchise.