What was the change in related-party receivable for Black Bear Diner in 2022?
Black_Bear_Diner Franchise · 2025 FDDAnswer from 2025 FDD Document
nse agreement that requires BTH to pay a 4.50% royalty to the Company. The Company recognized $8,041,863 and $7,600,569 of royalty income from BTH for the years ended December 27, 2023 and December 28, 2022, respectively, which is included in the statements of income.
Allocated Administrative Services: The Company also shares certain management and administrative functions with BTH. The Company charged BTH the amount of $3,153,562 and $2,983,206 for allocable share of management and administrative expenses and is rec for the years ended December 27, 2023 and December 28, 2022, respectively, which is included with payroll and benefits expenses in the statements of income.
Related-Party Receivable: The related-party receivable is unsecured, interest free and repayable on demand. The related-party receivable at any point in time generally consists of any combination of receivables from royalty and advertising fees, receivables
Source: Item 23 — RECEIPT (FDD pages 56–243)
What This Means (2025 FDD)
According to Black Bear Diner's 2025 Franchise Disclosure Document, the related-party receivable is unsecured, interest-free, and repayable on demand. It includes receivables from royalties, advertising fees, shared management and administrative functions, gift card sales at BTH-owned restaurants, and working capital advances to entities under common control.
As of December 28, 2022, the allocated administrative services receivable included within the related-party receivable totaled $226,604. The FDD does not explicitly state the total related-party receivable amount for the previous year, so the change in the total related-party receivable for 2022 cannot be precisely calculated from this document. However, the allocated administrative services receivable provides a component of the overall related-party receivable.
Prospective franchisees should note that these related-party transactions can impact the financial performance of Black Bear Diner. Understanding the nature and magnitude of these transactions is crucial for assessing the financial health and stability of the franchise. It would be prudent for potential franchisees to request additional details on the complete related-party receivable amounts and trends from Black Bear Diner to gain a more comprehensive financial picture.