What was the net value of Black Bear Diner's related-party trademark license agreements in 2022?
Black_Bear_Diner Franchise · 2025 FDDAnswer from 2025 FDD Document
management of the Company, who have attained age 21 and have completed one year of eligible service. Contributions to the Plan include (1) the amount of salary reduction elections of all participants, (2) employer-matching contributions equal to 50% of the matched employee contributions, not to exceed 6% of the employee's contributions, and (3) a discretionary employer profit sharing amount. All contributions are limited to the maximum amount allowed for federal income tax purposes. For the years ended December 27, 2023 and December 28, 2022, there were approximately $41,400 and $29,000, respectively, of contributions to the Plan.
NOTE 9 - RELATED-PARTY TRANSACTIONS
Related Party Royalties: The Company is under common control with BTH, as both are subsidiaries of BBD Opco LLC. The Company collects royalty revenue from Black Bear Diner restaurants owned and operated by BTH under a trademark lic
Source: Item 23 — RECEIPT (FDD pages 56–243)
What This Means (2025 FDD)
According to Black Bear Diner's 2025 Franchise Disclosure Document, the company collected royalty revenue from Black Bear Diner restaurants owned and operated by Bear Tracks Holdings LLC (BTH) under a trademark license agreement. This agreement requires BTH to pay a 4.50% royalty to Black Bear Diner.
In 2022, Black Bear Diner recognized $7,600,569 of royalty income from BTH. In addition to royalty revenue, Black Bear Diner also charged BTH $2,983,206 for their allocable share of management and administrative expenses. This amount is included with payroll and benefits expenses in the statements of income.
Understanding these related-party transactions is important for prospective franchisees as it provides insight into the financial relationships between Black Bear Diner and its affiliated entities. These transactions can impact the overall financial performance and stability of the company, which in turn can affect the success and profitability of individual franchise locations.