What was the total value of Black Bear Diner's accounts receivable as of December 28, 2022?
Black_Bear_Diner Franchise · 2025 FDDAnswer from 2025 FDD Document
Related-Party Receivable: The related-party receivable is unsecured, interest free and repayable on demand. The related-party receivable at any point in time generally consists of any combination of receivables from royalty and advertising fees, receivables from allocation of shared management and administrative functions for which the Company bills and is reimbursed, gift card receivables from sales of gift cards at BTH owned restaurants for which cash has not yet been remitted to the Company, and from time to time, certain periodic working capital advances that the Company may make to entities under common control (BTH). As of December 27, 2023 and December 28, 2022, allocated administrative services receiva
Source: Item 23 — RECEIPT (FDD pages 56–243)
What This Means (2025 FDD)
According to the 2025 Franchise Disclosure Document, the related-party receivable for Black Bear Diner is unsecured, interest-free, and repayable on demand. This receivable generally includes a combination of items such as royalty and advertising fees, receivables from the allocation of shared management and administrative functions, gift card receivables from sales at Bear Tracks Holdings LLC (BTH) owned restaurants, and periodic working capital advances made to entities under common control, such as BTH.
As of December 28, 2022, the FDD mentions allocated administrative services receivable, but it does not specify the exact total value of the accounts receivable.
For a prospective Black Bear Diner franchisee, understanding the nature and amount of related-party receivables is crucial for assessing the financial health and transparency of the franchisor. It is important to ask Black Bear Diner for the specific value of the accounts receivable as of December 28, 2022, to gain a clearer picture of the company's financial position and its dealings with related entities.