What is Bear Tracks Holdings LLC's (BTH) relationship to the Black Bear Diner franchise?
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, meaning they share ownership. Both 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). This complex ownership structure indicates that BTH is a sister company responsible for managing corporate-owned Black Bear Diner locations, while the Company focuses on franchising and brand management.
This related-party relationship has financial implications. The Black Bear Diner 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.
Additionally, the Black Bear Diner company shares certain management and administrative functions with BTH. The Company charged BTH $3,415,177 and $3,153,562 for its allocable share of management and administrative expenses for the years ended December 25, 2024 and December 27, 2023, respectively. These financial transactions between the Company and BTH are considered related-party transactions and are disclosed in the financial statements to provide transparency about the financial relationships within the Black Bear Diner organization.