From what sources is the franchised Black Bear Diner restaurant sales information derived?

According to the 2025 Black Bear Diner Franchise Disclosure Document, the franchised restaurant sales information presented in Item 19 is derived from sales reports submitted by Black Bear Diner franchisees. The FDD indicates that this sales information is unaudited and unverified.

This means that the franchisor, Black Bear Diner, relies on the self-reported data from its franchisees without conducting independent audits to confirm the accuracy of the figures. As a prospective franchisee, it's important to recognize that these numbers represent the franchisees' own accounts of their sales performance, which may be subject to variations in accounting practices or reporting accuracy.

Given that the franchised restaurant sales data is unaudited and unverified, Black Bear Diner recommends that prospective franchisees conduct their own independent investigation into the costs and expenses associated with operating a franchise. The FDD suggests that current and former franchisees, whose contact information is listed in Exhibits F and G of the document, may be valuable sources of information for this investigation. This due diligence is a standard practice in franchising, as it allows potential franchisees to gather insights from those with direct experience in the system and to assess the financial performance data with a critical eye.