How does Black Bear Diner carry its receivables?
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
Source: Item 23 — RECEIPT (FDD pages 56–243)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, the excerpts provided do not contain specific details on how Black Bear Diner carries its receivables. The excerpts focus on the company's structure, the national advertising fund (NAF), use of estimates in financial statements, fiscal year details, decor packages, franchisee obligations upon termination, and lists of franchisees.
While the excerpts mention the NAF and the associated revenue from franchisees (approximately 1.00% of revenue), they do not elaborate on how these receivables are managed or accounted for. The document also discusses reimbursements to the company for advertising costs, which totaled $172,139 and $118,881 for the years ended December 25, 2024 and December 27, 2023, respectively. However, this information does not clarify the specifics of accounts receivable management.
A prospective Black Bear Diner franchisee should inquire directly with the franchisor about their accounts receivable practices. Specifically, they should ask about the terms for franchisee payments, any potential financing options, and the procedures for handling late payments or defaults. Understanding these aspects is crucial for managing their own finances and maintaining a healthy relationship with the franchisor.