From what sources is the company-affiliated Black Bear Diner restaurant information derived?
Black_Bear_Diner Franchise · 2025 FDDAnswer from 2025 FDD Document
The company-affiliated Restaurant information is derived from our internal accounting records and is unaudited. The franchised Restaurant sales information in the table is derived from our franchisee's sales reports, and is unaudited and unverified. You should conduct an independent investigation of the costs and expenses you will incur in operating your Restaurant. Current franchisees or former franchisees listed in Exhibits F and G of this Disclosure Document may be one source of information.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 46–52)
What This Means (2025 FDD)
According to Black Bear Diner's 2025 Franchise Disclosure Document, the financial information for company-affiliated restaurants is derived from the company's internal accounting records. These records are not audited. The financial performance representation includes historical gross sales and selected cost information from 65 affiliate-owned Black Bear Diner restaurants that operated for the full 2024 fiscal year, which ended on December 25, 2024, and 63 affiliate-owned restaurants that operated for the full 2023 fiscal year, which ended on December 27, 2023.
The company-affiliated restaurants included in the analysis offer substantially the same products and services that a franchised Black Bear Diner restaurant would offer. These restaurants are located in 10 different states, with the highest concentration in Texas, Arizona, and California. The company headquarters is in California, where its affiliates have been operating restaurants since 1995.
While these company-affiliated restaurants pay royalties and advertising contributions and make minimum local advertising expenditures, similar to what is required of franchisees, the analysis itself does not account for these amounts. Instead, the FDD includes a separate chart estimating these costs for franchisees, which include royalties of 4.5% of Gross Sales, advertising contributions of 1% of Gross Sales, and minimum local advertising expenditures of 1% of Gross Sales. Prospective franchisees should note that individual results may vary, and there is no guarantee of achieving the same sales or cost results as reflected in the analysis.