What is Bear Tracks Holdings LLC's (BTH) relationship to the Black Bear Diner company?
Black_Bear_Diner Franchise · 2025 FDDAnswer from 2025 FDD Document
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).
NOTE 9 - RELATED-PARTY TRANSACTIONS
Related Party Royalties: The Company is under common control with BTH, as both are subsidiaries of BBD Opco LLC. The Company collects royalty revenue from Black Bear Diner restaurants owned and operated by BTH under a trademark license agreement that requires BTH to pay a 4.50% royalty to the Company. The Company recognized $8,345,526 and $8,041,863 of royalty income from BTH for the years ended December 25, 2024 and December 27, 2023, respectively, which is included in the statements of income.
NOTE 9 - RELATED-PARTY TRANSACTIONS (Continued)
Allocated Administrative Services: The Company also shares certain management and administrative functions with BTH. The Company charged BTH the amount of $3,415,177 and $3,153,562 for allocable share of management and administrative expenses and is rec for the years ended December 25, 2024 and December 27, 2023, respectively, which is included with payroll and benefits expenses in the statements of income.
Source: Item 23 — RECEIPT (FDD pages 56–243)
What This Means (2025 FDD)
According to the 2025 Black Bear Diner Franchise Disclosure Document, Bear Tracks Holdings LLC (BTH) operates the company-owned Black Bear Diner restaurants. BTH is under common control with the Company (BBDI LLC). Both BBDI LLC and BTH are subsidiaries of 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). This means that BTH and BBDI LLC are related entities within a larger organizational structure.
Black Bear Diner also shares certain management and administrative functions with BTH. For the years ended December 25, 2024, and December 27, 2023, Black Bear Diner charged BTH $3,415,177 and $3,153,562, respectively, for its allocable share of management and administrative expenses. These charges are included with payroll and benefits expenses in the statements of income. Additionally, Black Bear Diner collects royalty revenue from Black Bear Diner restaurants owned and operated by BTH under a trademark license agreement that requires BTH to pay a 4.50% royalty to the Company. The Company recognized $8,345,526 and $8,041,863 of royalty income from BTH for the years ended December 25, 2024 and December 27, 2023, respectively.
For a prospective franchisee, this related-party relationship indicates that Black Bear Diner receives revenue from both its franchised locations and its company-owned locations operated by BTH. The royalty payments from BTH to Black Bear Diner contribute a significant portion of the company's income. The sharing of administrative services between the company and BTH may create efficiencies but also requires careful monitoring to ensure fair allocation of expenses. Understanding these relationships can provide a franchisee with insight into the financial structure and revenue streams of Black Bear Diner.