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What was the value of the related-party receivable for Black Bear Diner in the earlier period?

Black_Bear_Diner Franchise · 2025 FDD

Answer 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 combinatio

Source: Item 23 — RECEIPT (FDD pages 56–243)

What This Means (2025 FDD)

Based on the 2025 Franchise Disclosure Document, the excerpt provided does not contain the specific value of the related-party receivable for Black Bear Diner in any period. However, Note 9 discusses related-party transactions, including royalty revenue and allocated administrative services between the Company and Bear Tracks Holdings LLC (BTH). These transactions involve significant sums, such as royalty income from BTH of $8,041,863 for the year ended December 27, 2023, and $7,600,569 for the year ended December 28, 2022. Additionally, the Company charged BTH $3,153,562 for the allocable share of management and administrative expenses for the year ended December 27, 2023, and $2,983,206 for the year ended December 28, 2022. These figures indicate substantial financial interactions between Black Bear Diner and its related entities.

While the excerpt details the nature of related-party transactions, it does not provide the actual receivable balance. The document mentions that the related-party receivable is unsecured, interest-free, and repayable on demand, generally consisting of a combination of items. However, without specific figures, it's impossible to determine the exact value of the related-party receivable for any given period.

A prospective Black Bear Diner franchisee should inquire with the franchisor about the specific values of related-party receivables for past periods to gain a clearer understanding of the company's financial relationships and stability. Understanding these balances can provide insight into the flow of funds within the Black Bear Diner network and the financial health of related entities.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.