Do the Black Bear Diner financial statements include an income statement?
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 development initiatives as defined in the respective franchise agreements. From time to time, the Company utilizes the funds received from franchisees for advertising purposes as reimbursement of its costs, including salaries and other internal costs of administering the NAF. The reimbursements totaled $172,139 and $118,881 for the years ended December 25, 2024 and December 27, 2023, respectively, and are netted within payroll and benefits expenses on the statements of income. The production costs of advertising are expensed when the advertisements are first aired or displayed. All other advertising and promotional costs are expensed in the period incurred.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 55)
What This Means (2025 FDD)
Yes, according to the 2025 Black Bear Diner Franchise Disclosure Document, the company's financial statements include statements of income. Specifically, the document mentions that reimbursements for advertising costs are netted within payroll and benefits expenses on the statements of income. This indicates that an income statement is part of the financial reporting.
Furthermore, the FDD notes that royalty income from Bear Tracks Holdings LLC (BTH), amounting to $8,345,526 for the year ended December 25, 2024, and $8,041,863 for the year ended December 27, 2023, is included in the statements of income. Similarly, the allocated administrative services charged to BTH, totaling $3,415,177 and $3,153,562 for the same periods, are also included with payroll and benefits expenses in the statements of income.
These references confirm that Black Bear Diner's financial statements do indeed incorporate an income statement, which is used to report revenues, expenses, and ultimately, the company's profit or loss over a specific period. A prospective franchisee can review these statements to understand the financial performance and health of the franchisor.