What was the depreciation expense for Black Bear Diner for the year ended December 27, 2023?

According to Black Bear Diner's 2025 Franchise Disclosure Document, the depreciation expense for the year ending December 27, 2023, was $86,353. The FDD also provides the depreciation expense for the year prior, which ended December 28, 2022, which was $70,347.

Depreciation expense represents the allocation of the cost of tangible assets, like equipment and buildings, over their useful lives. It is a non-cash expense, meaning it doesn't involve an actual outflow of cash during the period, but it does reduce the company's reported profit.

For a prospective Black Bear Diner franchisee, understanding depreciation expense is important for assessing the overall financial health and profitability of the company. While it doesn't directly impact cash flow, it does affect net income, which is a key metric for evaluating investment returns. Franchisees may want to compare these figures to previous years and industry benchmarks to assess if the depreciation expense is in line with expectations.