How much was the amortization of intangible assets for Black Bear Diner in 2022?
Black_Bear_Diner Franchise · 2025 FDDAnswer from 2025 FDD Document
and December 28, 2022 was $86,353 and $70,347, respectively.
NOTE 3 - INTANGIBLE ASSETS AND GOODWILL
Intangible assets consist of the following:
| Life | December 27, | December 28, | |
|---|---|---|---|
| in Years | 2023 | 2022 | |
| Intangible assets subject to amortization: | |||
| Trade name | 20 | $ 35,100,000 |
Source: Item 23 — RECEIPT (FDD pages 56–243)
What This Means (2025 FDD)
According to the 2025 FDD, the amortization expense on intangible assets for Black Bear Diner was $2,988,404 for the year ended December 28, 2022. This figure represents the expense recognized for the decline in value of intangible assets, such as trademarks and licenses, over their useful lives.
Within this total amortization expense, $360,799 is specifically related to the related party trademark license agreement for the year ended December 28, 2022. This portion reflects the amortization of the cost associated with the trademark license agreement between Black Bear Diner and a related party.
For a prospective franchisee, understanding the amortization expense is crucial as it impacts the company's profitability and financial health. It's also important to note that these figures are based on estimates made by management, and actual results could differ. Reviewing these expenses can provide insight into the value and lifespan of Black Bear Diner's intangible assets.