What was the balance for Black Bear Diner as of December 28, 2022?
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 development initiatives as defined in the respective franchise agreements. From time to time, the Company utilizes the funds received from franchisees for advertising purposes as reimbursement of its costs, including salaries and other internal costs of administering the NAF. The reimbursements totaled $172,139 and $118,881 for the years ended December 25, 2024 and December 27, 2023, respectively, and are netted within payroll and benefits expenses on the statements of income. The production costs of advertising are expensed when the advertisements are first aired or displayed. All other advertising and promotional costs are expensed in the period incurred.
Use of Estimates: The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period.
Source: Item 23 — RECEIPT (FDD pages 56–243)
What This Means (2025 FDD)
According to the 2025 FDD, Black Bear Diner's national advertising fund (NAF) received reimbursements of $110,240 for advertising costs for the year ending December 28, 2022. These reimbursements are netted within payroll and benefits expenses on the statements of income. The NAF is funded by contributions from Black Bear Diner restaurants, which approximate 1.00% of revenue. These funds are specifically used for advertising and brand development initiatives.
Black Bear Diner also engages in related-party transactions with Bear Tracks Holdings LLC (BTH), an entity under common control. Black Bear Diner collected $7,600,569 in royalty income from BTH for the year ended December 28, 2022. Additionally, Black Bear Diner charged BTH $2,983,206 for its allocable share of management and administrative expenses for the same period. These expenses are included with payroll and benefits expenses in the statements of income.
For the year ended December 28, 2022, Black Bear Diner contributed approximately $29,000 to its 401(k) profit sharing plan. This plan covers eligible employees who have attained age 21 and completed one year of service, excluding executive management. Contributions include salary reduction elections, employer-matching contributions (up to 6% of the employee's contributions), and a discretionary employer profit sharing amount. All contributions are limited to the maximum amount allowed for federal income tax purposes.