Do the Black Bear Diner financial statements include a balance sheet?
Black_Bear_Diner Franchise · 2025 FDDAnswer from 2025 FDD Document
The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period.
The Company's financial statements reflect accounts and balances as of and for the fiscal years ended December 25, 2024 and December 27, 2023, which both contained 52 weeks.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 55)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, it is not explicitly stated whether the Black Bear Diner's financial statements include a balance sheet. However, Item 23 discusses the preparation of financial statements, noting that it requires management to make estimates and assumptions affecting the reported amounts of assets and liabilities. This suggests that a balance sheet, which presents assets, liabilities, and equity, is likely part of the financial statements.
Furthermore, the document mentions that the company's financial statements reflect accounts and balances as of and for the fiscal years ended December 25, 2024, and December 27, 2023. This indicates that the financial statements provide a snapshot of the company's financial position at those specific points in time, which is a primary function of a balance sheet.
To confirm whether a balance sheet is included, a prospective franchisee should carefully review the full financial statements included in the FDD and consult with a financial advisor. It would be prudent to ask Black Bear Diner directly for clarification on the specific components of their financial statements to fully understand the company's financial health and reporting practices.