What was the net cash provided by operating activities for Black Bear Diner in 2022?

According to Black Bear Diner's 2025 Franchise Disclosure Document, the net cash provided by operating activities in 2022 was $10,109,448. This figure represents the cash flow generated from the company's core business operations during that fiscal year. Understanding the net cash provided by operating activities is crucial for prospective franchisees as it indicates the financial health and stability of Black Bear Diner. A strong positive cash flow suggests that the company is effectively managing its revenues and expenses.

Several adjustments were made to net income to arrive at the net cash provided by operating activities. These adjustments include amortization of intangible assets ($3,273,868), profits interest units compensation ($69,000), depreciation and amortization of property and equipment ($70,347), amortization of right-of-use lease assets ($97,131), and changes in various operating assets and liabilities such as accounts receivable, related-party receivable, prepaid expenses, accounts payable, accrued payroll, reduction of operating lease liabilities, franchise fee deposits, and gift card contract liabilities. These adjustments are typical in financial statements to reconcile net income, which is an accrual-based measure, to actual cash flows.

For a potential Black Bear Diner franchisee, this information is valuable in assessing the overall financial performance and cash-generating capabilities of the company. It provides insight into how effectively Black Bear Diner manages its operations and converts profits into cash. This can influence a franchisee's confidence in the brand's sustainability and potential for return on investment. Reviewing these figures in comparison to previous years and industry benchmarks can further inform a franchisee's decision-making process.