What was the balance of Black Bear Diner's goodwill as of December 28, 2022?
Black_Bear_Diner Franchise · 2025 FDDAnswer from 2025 FDD Document
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. Areas that include significant estimates made by management include, but are not limited to, estimated useful lives and carrying value of long-lived assets and the valuation of intangible assets and goodwill.
Fiscal Year: 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 years ended December 27, 2023 and December 28, 2022, which both contained 52 weeks.
Source: Item 23 — RECEIPT (FDD pages 56–243)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, the financial statements require management to make estimates and assumptions that affect the reported amounts of assets and liabilities. These estimates include the valuation of intangible assets and goodwill. However, the exact balance of Black Bear Diner's goodwill as of December 28, 2022, is not specified within the provided excerpts.
While the FDD mentions that the company's financial statements reflect accounts and balances as of and for the fiscal years ended December 27, 2023, and December 28, 2022, it does not provide the specific goodwill valuation for either of those years. The fiscal year ends on the last Wednesday prior to December 31 and consisted of 52 weeks for both 2023 and 2022.
For a prospective franchisee, this means that understanding the actual goodwill balance would require further investigation. It would be prudent to request detailed financial statements from Black Bear Diner during the due diligence process to assess the company's financial health and the value of its intangible assets. This information is crucial for making an informed investment decision.