What format does Black Bear Diner require for certified financial statements?
Black_Bear_Diner Franchise · 2025 FDDAnswer from 2025 FDD Document
An accounting of the operation of the Marketing Fund shall be prepared annually and shall be made available to Franchisee upon request. Franchisor reserves the right, at its option, to require that such annual accounting include an audit of the operation of the Marketing Fund prepared by an independent certified public accountant selected by Franchisor and prepared at the expense of the Marketing Fund.
Source: Item 23 — RECEIPT (FDD pages 56–243)
What This Means (2025 FDD)
I am unable to provide information on the specific format requirements for certified financial statements from Black Bear Diner's 2025 Franchise Disclosure Document. While the document mentions financial statements in the context of the National Advertising Fund and the overall financial health of the company, it does not detail the required format for franchisee-submitted financial statements.
Specifically, the FDD discusses the accounting of the Marketing Fund, stating that an annual accounting will be prepared and made available to franchisees upon request. It also mentions that Black Bear Diner reserves the right to require an audit of the Marketing Fund's operation, prepared by an independent certified public accountant. However, these references pertain to the franchisor's financial reporting, not the franchisees.
To understand the specific requirements for financial statements, a prospective Black Bear Diner franchisee should ask the franchisor directly about the required format, frequency of submission, and any specific accounting standards that must be followed. This information is crucial for franchisees to ensure compliance and maintain a transparent financial relationship with the franchisor.