Was the information contained in the Black Bear Diner financial analysis audited?

According to the 2025 Black Bear Diner Franchise Disclosure Document, the financial information provided in the analysis has not been audited. Specifically, the company-affiliated restaurant information is derived from internal accounting records and is unaudited, and the franchised restaurant sales information is derived from franchisee's sales reports, which are also unaudited and unverified. This means that the figures presented for gross sales, cost of goods sold, labor, and 4-Wall EBITDA have not been independently checked or confirmed for accuracy.

As a prospective franchisee, it is important to understand that the financial performance data presented by Black Bear Diner is based on internal records and franchisee-submitted data, without external verification. While the FDD is required to have a reasonable basis for the information, the lack of an audit means there is a higher risk of inaccuracies or inconsistencies in the data. This does not necessarily mean the data is unreliable, but it does suggest that a franchisee should conduct their own due diligence and not rely solely on the franchisor's representations.

Given that the financial data is unaudited, a potential franchisee should consider taking extra steps to verify the information. This could include consulting with financial advisors, speaking with current and former franchisees to gather their experiences, and conducting independent market research to assess the potential for a Black Bear Diner in their desired location. The FDD explicitly encourages prospective franchisees to conduct an independent investigation of the costs and expenses they will incur in operating their restaurant. By taking these precautions, a franchisee can make a more informed decision about investing in a Black Bear Diner franchise.