How much did Black Bear Diner spend on purchases of property and equipment in 2023?
Black_Bear_Diner Franchise · 2025 FDDAnswer from 2025 FDD Document
Company) franchises restaurants under the Black Bear Diner brand. The Company provides marketing strategies, organizational expertise, and site acquisition support for franchised restaurants and restaurants under common control. The Company's principal market is in the western United States of America. The following table provides 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.
Use of Estimates: The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of
Source: Item 23 — RECEIPT (FDD pages 56–243)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, it is not possible to determine the specific amount Black Bear Diner spent on purchases of property and equipment in 2023. While the document includes financial statements, it does not break down expenses in a way that isolates property and equipment purchases. Item 23 discusses the National Advertising Fund and its administration, including reimbursements for advertising costs, but this is distinct from capital expenditures on property and equipment. The document mentions that the preparation of financial statements requires management to make estimates regarding the useful lives and carrying value of long-lived assets. However, it does not disclose the actual capital expenditure figures. A prospective franchisee should ask the franchisor directly for detailed information on capital expenditures, including specific figures for property and equipment purchases in recent years, to gain a clearer understanding of the company's investment trends.