What is included in the Labor costs for a Black Bear Diner restaurant, and what is excluded?
Black_Bear_Diner Franchise · 2025 FDDAnswer from 2025 FDD Document
- (3) Labor consists of all Restaurant-level salaries and wages for salaried and hourly managers and employees, inclusion of taxes and insurance. It does not include corporate level general and administrative expenses.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 46–52)
What This Means (2025 FDD)
According to Black Bear Diner's 2025 Franchise Disclosure Document, labor costs include all restaurant-level salaries and wages for both salaried and hourly managers and employees. This also includes the associated taxes and insurance costs for those employees.
However, the labor costs reported do not include corporate-level general and administrative expenses. This means that the costs associated with employees at the Black Bear Diner corporate office are not factored into the restaurant-level labor costs.
Understanding what is included and excluded from labor costs is crucial for prospective franchisees as they evaluate the potential profitability of a Black Bear Diner location. By excluding corporate-level expenses, the FDD provides a clearer picture of the labor costs that are directly controllable at the restaurant level. This allows franchisees to better assess their potential operating expenses and make informed decisions about staffing and wage management.