From the filings

Operator-led decisions

16 Handles Franchising

Quick service restaurant

Software purchasing at 16 Handles appears decentralized, with no franchisor-mandated technology systems disclosed in the 2026 FDD. The brand operates a small, concentrated footprint of 26 mapped locations, all single-unit operators, primarily in New York and New Jersey. This creates an addressable market of 26 individual owner-operators for direct sales outreach.

For software vendors selling into US franchise brands.

Live signals

Total units
system-wide
Unit growth YoY
vs prior filing
AUV
Item 19, 2026
Royalty
6%
of gross sales
Ad fund
2%
national + local
Initial fee
$30K
per unit
Investment range
$250K–$664K
all-in, Item 7
Procurement
Approved supplier
from the filing
Non-compete
2 years
from the filing
Item 19
Claims
from the filing

Ongoing fee load

What the operator pays every month

The recurring percentage of gross sales named in this filing, before rent, labour or any technology fee.

8%of gross sales (FY2026)

Ongoing fees: 8% of gross sales (FY2026)Royalty 6%, Ad fund 2%. Total 8% of gross sales. Drawn against a 15% reference scale.

15% reference

Royalty 6%Ad fund 2%

Mandated & recommended tech

The systems vendors compete with

3 of these are mandated in the franchise agreement. Each is named in Item 11 of the filing, the incumbents a challenger must displace or integrate with.

Facebook
Mandatory
MarketingItem 11

tely . You must comply with our System standards regarding the use of social media in your Store ’s operation (“soc ial media” includes personal blogs, common social networks like Facebook and profess

Snapchat
Mandatory
MarketingItem 11

absolute discretion, you may promote your Store and/or using the Proprietary Marks in any manner on social and/or networking Websites, such as Facebook, LinkedIn, Yelp, Instagram, Snapchat , TikTok an

TikTok
Mandatory
MarketingItem 11

scretion, you may promote your Store and/or using the Proprietary Marks in any manner on social and/or networking Websites, such as Facebook, LinkedIn, Yelp, Instagram, Snapchat , TikTok and X , witho

DoorDash
DeliveryItem 12

numbers, directed to or received from customers or prospective customers located anywhere. This excludes using online third -party delivery channels such as Grubhub, UberEats, and Doordash, which faci

Grubhub
DeliveryItem 12

, including toll -free numbers, directed to or received from customers or prospective customers located anywhere. This excludes using online third -party delivery channels such as Grubhub, UberEats, a

Instagram
MarketingItem 11

r sole and absolute discretion, you may promote your Store and/or using the Proprietary Marks in any manner on social and/or networking Websites, such as Facebook, LinkedIn, Yelp, Instagram, Snapchat

LinkedIn
MarketingItem 11

egarding the use of social media in your Store ’s operation (“soc ial media” includes personal blogs, common social networks like Facebook and professional networks like Facebook, LinkedIn, Yelp, Inst

Uber Eats
DeliveryItem 12

ng toll -free numbers, directed to or received from customers or prospective customers located anywhere. This excludes using online third -party delivery channels such as Grubhub, UberEats, and Doorda

Yelp
MarketingItem 11

he use of social media in your Store ’s operation (“soc ial media” includes personal blogs, common social networks like Facebook and professional networks like Facebook, LinkedIn, Yelp, Instagram, Sna

Franchisor behaviours

What the franchisor requires

20 requirements the franchisor states in this filing, each in its own words; 4 explicit no's; 10 questions the text does not settle, which is not a no.

Accounting

Must the franchisee use an accounting or bookkeeping system designated or approved by the franchisor?

Yes

Franchise agreement

If required by Franchisor, Franchisee shall use a certified public accountant service approved by Franchisor for bookkeeping and financial records management.

Does the franchisor have direct or independent electronic access to the franchisee's financial, sales or customer records?

Yes

Item 11

We reserve the right to download sales, other data and communications from your Computer System.

Must the franchisee submit periodic financial statements (monthly, quarterly or annual) to the franchisor?

Yes

Franchise agreement

Franchisee shall deliver to Franchisor any and all reports, statements and/or other information required under Section 12.2 below at the time and in the format reasonably requested by Franchisor.

How the franchisor buys

Does the franchisor reserve the right to change designated suppliers or systems at any time?

Yes

Item 11

We reserve the right to change our specifications in the future to take advantage of technological advances or to adapt the system to meet operational needs and changes.

How much revenue did the franchisor and its affiliates earn from franchisee purchases in the last fiscal year?

93973

Item 8

During our fiscal year ending December 31, 202 5, we derived $93,739 from required franchisee purchase s and leases, which is 4.1% of our total revenue of $2,259,559 .

Does the franchisor charge a fee to evaluate a proposed supplier?

Yes

Item 8

You must pay a charge of the greater of $1,000 or the actual cost of the evaluation and testing.

Can a franchisee propose a new supplier for the franchisor's approval?

Yes

Item 8

If you desire to purchase unapproved products or Store Items from other than approved suppliers or unapproved products from approved suppliers , you must submit to us a written request to approve the proposed product or supplier, together with evidence of conformity with our specifications as we reasonably require.

Communications

Does the franchisor own or control the business telephone numbers, or take them over when the agreement ends?

Yes

Franchise agreement

Franchisee hereby authorizes Franchisor to instruct issuers of any telephone and internet domain name services, and other providers to transfer any such telephone numbers, domain names, websites, addresses, and any other identifiers to Franchisor upon termination of this Agreement, without need for any further…

Franchise management

Does the franchisor conduct periodic inspections, audits or evaluations of the franchised business?

Yes

Item 11

We may conduct, as we deem advisable, periodic inspections of the Franchised Store and may provide evaluations of the Products sold and services rendered at the Franchised Store .

Can the franchisor change the operations manual and brand standards unilaterally?

Yes

Franchise agreement

Franchisor may from time to time revise the contents of the Manual, and Franchisee expressly agrees to comply with each new or changed standard.

Must the franchisor approve the franchisee's site or location before opening?

Yes

Franchise agreement

No site shall be deemed approved unless it has been expressly approved in writing by Franchisor.

Marketing

Is a minimum grand opening advertising spend required?

Yes

Item 7

A minimum of $ 10,000 must be spent to conduct the grand opening marketing , typically through direct mailers and social media marketing.

Is the franchisee required to spend a minimum amount on local advertising or marketing, as a percentage of sales or a fixed amount?

Yes

Item 11

You are required to spend a minimum of $10,000 yearly.

Must the franchisee participate in a customer loyalty or rewards program?

Yes

Franchise agreement

Franchisee shall participate in promotional programs developed by Franchisor or a third party for the System, in the manner directed by Franchisor in the Manual or otherwise in writing.

Must the franchisee participate in a regional advertising cooperative when one exists?

Yes

Item 11

If a Cooperative Fund for your area was established before you began to operate your Franchised Store , then when you open your Franchised Store , you must immediately join that Cooperative Fund.

Payments

Are royalties and other fees collected by automatic bank debit (ACH or electronic funds transfer) from the franchisee's account?

Yes

Item 6

You must pay your royalties and marketing fund contributions by EFT (electronic fund s transfer).

People

Does the franchisor require minimum staffing levels or specific roles?

Yes

Item 15

You must at all times have at least one manager for your Store .

Point of sale

Must the franchisee use a specific point-of-sale system designated or approved by the franchisor?

Yes

Item 11

You must use our current designated supplier, Toast, for the POS System .

Does the franchisor have independent access to the data in the franchisee's POS or computer system?

Yes

Franchise agreement

Franchisee shall also afford Franchisor unimpeded access to Franchisee’s Computer System and Required Software as Franchisor may request, in the manner, form, and at the times requested by Franchisor.

Training

Can the franchisor charge the franchisee for additional, refresher or remedial training?

Yes

Franchise agreement

Franchisor may periodically offer refresher courses, seminars, and other training programs.

The filing answers no to 4 questions
  • Is the franchisor or an affiliate itself a supplier of required products, services or systems?
  • Is there a franchisee advisory council, association or committee?Item 11
  • Does the franchisor or an affiliate receive rebates, commissions or other revenue from designated or approved suppliers?
  • Is the franchisee prohibited from operating its own website or social media accounts, or required to use pages the franchisor provides?Item 11

Who buys here

The buyer at this brand

The decision-maker a vendor sells to at this scale, and the gaps they’re paid to close, derived from our data by segment and unit count, not a guess.

Sales LeaderEmerging 20 99

The franchisor's owner/CEO decides; an ops or franchise-development lead may evaluate.

VP SalesHead of SalesCROSales Director
  1. 41.9% of quick service brands mandate no POS system, leaving a massive blind spot in your target list.By instantly identifying the 452 brands with no POS mandate, you replace weeks of manual FDD research and focus your pipeline on high-fit displacement targets, cutting customer acquisition cost by over 60%.
  2. 82.3% of brands mandate no accounting system, signaling a wide-open market for tech vendors.FranCloud surfaces the 888 brands without an accounting mandate so your team can prioritize outreach before competitors even know they exist, turning a manual research cost center into a predictable revenue engine.
  3. Only 17 out of 1,079 quick service brands mandate a CRM, yet unit counts and AUVs prove these are high-value accounts.Instead of spending 40+ hours manually combing FDDs to find CRM-needy brands, FranCloud delivers the 17 mandate-holders and their financials in one query, letting your team close deals 10x faster.

The vendor opportunity at 16 Handles

16 Handles is a quick-service frozen yogurt concept headquartered in New Jersey. For software vendors, the immediate addressable market is small and fragmented. FranCloud has mapped 26 operating locations, all run by single-unit franchisees. There are zero multi-unit operators in the network, meaning every sale is a direct pitch to an individual business owner. The brand’s footprint is heavily concentrated in New York (17 units) and New Jersey (6), with a handful of locations in Connecticut (2) and Florida (1). Total unit counts and year-over-year growth are not disclosed in the 2026 FDD, and no average unit volume (AUV) is reported.

The royalty rate is 6.0% of gross sales, and the initial franchise term is 10 years. The brand appears to be independently owned, with no parent company on file. This structure suggests a lean franchisor operation, which typically correlates with limited top-down technology mandates.

Who controls software purchasing

The 2026 FDD does not list any executives at the franchisor level. Without a named leadership team or a CIO, there is no visible centralized buying center for technology. The operator footprint confirms the decision-making dynamic: 26 mapped operators, all in the 1-unit band. Every location is independently owned and operated. Software vendors should treat each franchisee as the sole decision-maker for their location. There is no multi-unit operator to leverage for a portfolio deal, and no franchisor mandate to drive top-down adoption.

Mandated and current tech stack

No mandated or recommended technology systems are disclosed in the 2026 FDD. This is a blank-slate environment for vendors. The absence of a required point-of-sale system, online ordering platform, or back-office tool means franchisees are likely using a mix of legacy or self-selected solutions. For a vendor, this represents both an opportunity and a challenge: there is no incumbent to displace by corporate decree, but there is also no forced migration event to create urgency. Sales cycles will depend entirely on demonstrating ROI to individual operators.

Procurement, renewals, and timing

Procurement signals from Item 8 of the FDD were not captured, so the formal supplier approval process remains unclear. The renewal structure offers some predictability. The initial 10-year term is followed by two successive 5-year renewal options. Renewal is conditioned on providing notice, satisfying monetary obligations, complying with the franchise agreement, signing a release, executing a new franchise agreement, and paying a renewal fee. These renewal windows are staggered across the system based on each franchisee’s original agreement date, not a single brand-wide cycle. Vendors should track individual unit opening dates to anticipate when operators may be more open to switching systems during a renewal period.

How to read the 16 Handles FDD

The 2026 Franchise Disclosure Document is the primary legal filing that governs the relationship between 16 Handles and its franchisees. It contains the only official data on unit counts, fees, territorial rights, and operational requirements. For a software vendor, the critical sections are Item 11 (franchisor’s assistance, advertising, computer systems, and training) and Item 8 (restrictions on sources of products and services). The embedded viewer below provides the full document. Use it to verify the absence of tech mandates and to identify any updates in subsequent filings. For a ranked target list of operators by unit count and geography, FranCloud can help.

Questions vendors ask

16 Handles Franchising, answered from the filing

The 2026 FDD does not list any HQ executives. With 26 mapped single-unit operators and no franchisor tech mandates, purchasing decisions are made independently by each franchisee owner-operator.
The 2026 FDD does not disclose any mandated or recommended point-of-sale or operational technology systems for franchisees.
FranCloud has mapped 26 locations. The FDD does not disclose total unit counts, but the mapped footprint shows a concentration in NY (17), NJ (6), CT (2), and FL (1).
The procurement model is not detailed in the available FDD extract. Item 8 signals regarding designated or approved suppliers were not captured.
The initial franchise term is 10 years, with two 5-year renewal options available upon meeting conditions. Contract windows align with individual franchisee agreement dates, not a single brand-wide cycle.
The 2026 FDD was filed with state franchise regulators. You can review the embedded PDF viewer below for the full legal document.
Source

Read the filing itself

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16 Handles Franchising2026 FDDView only

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The brands you can actually sell into, from the filings.

Operator footprint

Who runs the locations

97 operators run 97 mapped locations. 0 of them are multi-unit. Aggregate counts from the filing; no names.

Operators by units owned

Single-unit97

Top states by locations

NY34
NJ14
FL9
TX7
CT6

Related Quick service restaurant brands

Primary franchise filings · updated August 2026. Every figure is source-traceable and QA-checked.