Are there any disclaimers related to the Black Bear Diner financial statements?
Black_Bear_Diner Franchise · 2025 FDDAnswer from 2025 FDD Document
bove chart.
- (5) Royalties consists of 4.5% of Gross Sales as defined above.
Some Black Bear Diner Restaurants have achieved the sales and cost results in this analysis. Your individual results may differ. There is no assurance that you will achieve sales or cost results at the levels reflected in this analysis.
Other than the preceding financial performance representation, BBDI, LLC does not make any financial performance representations. We also do not authorize our employees or representatives
to make any such representations either orally or in writing. If you are purchasing an existing outlet, however, we may provide you with the actual records of that outlet. If you receive any other financial performance information or projections of your future income, you should report it to the franchisor's management by contacting Chad Corrigan, VP, Franchise Sales & Development, chad.corrigan@blackbeardiner.com; Tel: 530.782.5830, the Federal Trade Commission, and the appropriate state regulatory agencies.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 55)
What This Means (2025 FDD)
According to the 2025 Black Bear Diner Franchise Disclosure Document, there are several disclaimers and qualifications related to the financial statements presented. One key disclaimer states that individual results may vary, and there is no assurance that a franchisee will achieve the same sales or cost results as those reflected in the analysis. This highlights the inherent risk in any business venture, as past performance is not necessarily indicative of future results. This disclaimer is common in franchise FDDs, as franchisors cannot guarantee a franchisee's success.
Another important disclaimer relates to the use of estimates in preparing the financial statements. Black Bear Diner's management makes estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, and expenses. These estimates include the useful lives and carrying value of long-lived assets, as well as the valuation of intangible assets and goodwill. The FDD notes that actual results could differ significantly from these estimates. This is a standard accounting practice, but it's important for prospective franchisees to understand that the financial statements are based on certain assumptions that may not materialize.
Finally, the FDD indicates that Black Bear Diner does not have full access to, or full confidence in, cost or EBITDA information received from franchisees. As a result, they do not include franchisee cost or EBITDA performance information in their financial performance representations. This lack of comprehensive data from franchisees could limit the scope and accuracy of any financial performance representations provided. Prospective franchisees should consider these disclaimers when evaluating the financial information presented in the FDD and conduct their own due diligence to assess the potential financial performance of a Black Bear Diner franchise.