What was the reported change in franchise fee deposits for Black Bear Diner in 2022?
Black_Bear_Diner Franchise · 2025 FDDAnswer from 2025 FDD Document
United States of America. The following table provides additional information about the Companyowned and franchised restaurants operating as of December 27, 2023 and December 28, 2022:
| 2023 | 2022 | |
|---|---|---|
| Franchised restaurants | 91 | 88 |
| Company-owned restaurants | 65 | 65 |
| Total | 156 | 153 |
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 oth
Source: Item 23 — RECEIPT (FDD pages 56–243)
What This Means (2025 FDD)
According to the 2025 FDD, Black Bear Diner's national advertising fund (NAF) received reimbursements totaling $110,240 for the year ended December 28, 2022, and $118,881 for the year ended December 27, 2023. This represents an increase of $8,641 in reimbursements from 2022 to 2023. These funds are collected from Black Bear Diner branded restaurants, approximating 1.00% of revenue, and are specifically used for advertising and brand development initiatives. The reimbursements are netted within payroll and benefits expenses on the statements of income.
For a prospective franchisee, this indicates that a portion of their revenue (1%) contributes to the national advertising fund, which Black Bear Diner uses to manage advertising and marketing efforts. The company also uses these funds to reimburse its own costs, including salaries and internal costs, associated with administering the NAF.
It is important to note that the financial statements' preparation involves management making estimates and assumptions that could affect the reported amounts. Actual results may differ significantly from these estimates. The company operates on a 52-/53-week fiscal year, with the financial statements reflecting accounts and balances as of and for the fiscal years ended December 27, 2023, and December 28, 2022, both of which contained 52 weeks.