What were the total advertising and related expenses for Black Bear Diner in 2023?
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 Black Bear Diner's 2025 Franchise Disclosure Document, the company operates a national advertising fund (NAF) that collects approximately 1.00% of revenue from Black Bear Diner branded restaurants. These funds are earmarked for national, regional, and local advertising and marketing initiatives. The company sometimes uses these funds to reimburse its own costs, including salaries and internal costs related to administering the NAF.
For the year ended December 27, 2023, these reimbursements totaled $118,881. These reimbursements are accounted for by netting them against payroll and benefits expenses on the company's income statement. The FDD specifies that the production costs of advertisements are expensed when the ads are first aired or displayed, while all other advertising and promotional costs are expensed in the period they are incurred.
It is important to note that the $118,881 figure represents only the reimbursements to the company for administering the NAF, which are netted against payroll and benefits. It does not represent the total advertising expenses for Black Bear Diner in 2023. The total advertising expenses would include the production costs of advertisements, other promotional costs, and any additional expenses not reimbursed through the NAF. A prospective franchisee should request the full accounting of the Marketing Fund to understand the total advertising expenditure.