You must purchase or lease, and use at your Outlet, the POS System we designate (currently the Clover POS system) to track and process retail sales at the Outlet (see section 8.4(a) of the Franchise Agreement). We estimate the cost of purchasing or leasing this POS ranges from $2,500 to $4,000. You will use this POS system to complete point-of-sale transactions and track your sales. There are no contractual limits on our independent access to the information and data stored on your POS system. You are responsible for all ongoing maintenance and repairs and upgrades. We anticipate that the annual cost of optional or required maintenance, updating, operating or support contracts regarding the POS system will range from $500 to $1,000. You will not be required to replace the POS System any more frequently than once every three years.
From the filings
1st R Trading
Quick service restaurantSoftware purchasing at 1st R Trading is controlled at the franchisor level, with Omega Merchant mandated across all 19 franchised locations. The system is small but growing at 11.8% year-over-year, concentrated in Georgia and Hawaii. For vendors, this is a low-unit, single-decision-maker opportunity with a clear tech mandate already in place.
For software vendors selling into US franchise brands.
Live signals
Ordinary royalty terms
4% component; full terms unconfirmed
Complete royalty terms are not confirmed for the selected filing.
Recorded percentage components
These are recorded percentage components. Each has its own base and conditions; the chart does not state the total payment or confirm ad-fund completeness.
1recorded components (FY2026)
15% reference
Mandated & recommended tech
The systems vendors compete with
2 technology requirements are recorded in this filing. A required choice lists alternatives for one obligation. Read each cited clause for its conditions.
5. You will need to conduct the necessary build-out of your leased space according to our designs and other requirements. The amounts listed in this type of expenditure are estimates that are based on basic build out of our Store design but do not include many variables related to the pre-existing condition of any one location. The size of Stores generally ranges from 350 square feet to 750 square feet of floor space. The cost of your build-out may be reduced by a Tenant Improvement (“TI”) allowance or rebate from the landlord, which varies depending on the terms of each lease agreement. However, you will be required in most cases to complete the build-out, satisfy all related invoices to contractors and service providers and obtain a Certificate of Occupancy to qualify for the TI rebate from the landlord. The equipment and fixtures you need to obtain include refrigerator, freezer, food prep tables, deep fryer, dough mixer, stainless cart, drink fountain (optional), clear rectangle and round containers with lids in various sizes, small kitchenware and cooking utensils. Furniture you need to obtain includes tables, chairs and shelving. Furniture you need to obtain includes tables, chairs and shelving. 6. This includes the Clover point of sale (“POS”) system with cash register, receipt printer, computer system, and credit card reading/charging equipment. Omega Merchant is the designated supplier of the POS system and related merchant services. 7. This refers to the initial inventory of authorized products to be sold at the Store and other items of merchandise and supplies you must stock to open for business. You must buy initial proprietary ingredients needed to make Corndogs by Mr. Cow beverages (at a cost of $7,000 to $10,000), and proprietary administrative supplies, including flyers, recruitment canvas strips, grand opening canvas strips, sale trial canvas strips and advertising sign stand including promotion rack (at a cost of $500 to $750) from a designated supplier. The cost of initial inventory will vary depending on your Store size. The estimated amount is based on our previous experience with operating similar Stores.
(6) May recommend retail prices for Corndogs by Mr. Cow Products you sell at your Store, and other products and services we authorize for sale at your Store (to enhance uniformity in the delivery of goods and services to retail customers by our franchises and the strength of our Marks in inter-brand competition), and if we do so, you may not advertise or promote (whether by telephone, printed materials or any other media, including, without limitation, social media) retail prices that are inconsistent with these recommended prices (see section 8.1(b) of the Franchise Agreement). We do not set prices for Corndogs by Mr. Cow Products or other authorized merchandise you sell at your Store. Corndogs By Mr. Cow FDD 011626 -14- Advertising Program for the Franchise System We intend to use digital media (Internet, Facebook, Twitter, etc.) and targeted print media in our marketing and advertising efforts. And in the future, we may use local radio and television advertising. We will be using in-house advertising personnel to do this, but we also intend to hire advertising and public relations firms to assist us in these efforts. We are not required to spend any advertising fees in your franchised territory, although we may do so. Advertising Fees are spent to benefit all franchises, including you.
(6) May recommend retail prices for Corndogs by Mr. Cow Products you sell at your Store, and other products and services we authorize for sale at your Store (to enhance uniformity in the delivery of goods and services to retail customers by our franchises and the strength of our Marks in inter-brand competition), and if we do so, you may not advertise or promote (whether by telephone, printed materials or any other media, including, without limitation, social media) retail prices that are inconsistent with these recommended prices (see section 8.1(b) of the Franchise Agreement). We do not set prices for Corndogs by Mr. Cow Products or other authorized merchandise you sell at your Store. Corndogs By Mr. Cow FDD 011626 -14- Advertising Program for the Franchise System We intend to use digital media (Internet, Facebook, Twitter, etc.) and targeted print media in our marketing and advertising efforts. And in the future, we may use local radio and television advertising. We will be using in-house advertising personnel to do this, but we also intend to hire advertising and public relations firms to assist us in these efforts. We are not required to spend any advertising fees in your franchised territory, although we may do so. Advertising Fees are spent to benefit all franchises, including you.
Franchisor behaviours
What the franchisor requires
29 requirements the franchisor states in this filing, each in its own words; 3 explicit no's; 2 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?
YesFranchise agreement
Franchisee is required to use a designated brand of point-of-sale system (“POS System”) and merchant services account designated by Franchisor to track and process retail sales at the Restaurant using only the proprietary software provided by Franchisor or its affiliates.
Does the franchisor have direct or independent electronic access to the franchisee's financial, sales or customer records?
YesItem 11
There are no contractual limits on our independent access to the information and data stored on your POS system.
Must the franchisee submit periodic financial statements (monthly, quarterly or annual) to the franchisor?
YesFranchise agreement
On or before the fifth day after the end of each calendar month during the term of this Agreement, of Franchisee must submit to Franchisor a monthly income statement, showing profits and losses, relating to the Outlet and Franchisee’s operation of the Franchised Business.
How the franchisor buys
Is the franchisor or an affiliate itself a supplier of required products, services or systems?
YesItem 8
You must purchase all proprietary products to be used in preparing Corndogs by Mr. Cow Products from FR.
Does the franchisor reserve the right to change designated suppliers or systems at any time?
YesItem 8
We currently designate the Clover POS system and merchant services provided by Omega Merchant, but we may change the designated POS System and designated vendor at any time, so you may be required to purchase a different POS System for all Stores you operate from a different vendor.
How much revenue did the franchisor and its affiliates earn from franchisee purchases in the last fiscal year?
0Item 8
In 2025, neither we nor our affiliates derived revenue, rebates or other material consideration because of required purchases or leases by Corndogs by Mr. Cow franchisees.
Does the franchisor or an affiliate receive rebates, commissions or other revenue from designated or approved suppliers?
YesFranchise agreement
Franchisor and its affiliated entities reserve the right to derive and receive revenues, rebates or other material consideration as a result of required purchases by System franchisees, and to retain for itself or use such revenues, rebates or other material consideration as Franchisor deems appropriate.
Item 8 gives this proportion in one of two shapes: separate percentages for establishing the business and for operating it, or one figure covering "establishing and operating" together. Where they are separate, answer with the operating percentage; where the passage gives only the combined figure, answer with that. What percentage of the franchisee's purchases must come from designated or approved suppliers?
30Item 8
(ii) in operating your Store will range from 30% to 35% of your total monthly expenses.
Does the franchisor charge a fee to evaluate a proposed supplier?
YesItem 8
A charge not to exceed the reasonable costs of evaluation and testing must be paid by you.
Can a franchisee propose a new supplier for the franchisor's approval?
YesItem 8
If you desire to purchase products other than those provided by approved suppliers, you must submit to us a written request for approval of the proposed supplier together with such evidence of conformity with our specifications and program specifications as we may reasonably require.
Communications
Does the franchisor own or control the business telephone numbers, or take them over when the agreement ends?
YesFranchise agreement
Assign all interest and right to use all telephone numbers and all listings applicable to the Restaurant in use at the time of such termination to Franchisor and take all action necessary to change all such telephone numbers immediately and change all such listings as soon as possible.
Franchise management
Does the franchisor conduct periodic inspections, audits or evaluations of the franchised business?
YesFranchise agreement
(a) Franchisor has the right to send representatives at reasonable intervals at any time (announced or unannounced) during normal business hours, to Franchisee's Restaurant (or any other facility from which Franchisee sells Corndogs by Mr.
Can the franchisor change the operations manual and brand standards unilaterally?
YesFranchise agreement
Franchisor has the right to modify the Confidential Operations Manual at any time by the addition, deletion or other modification of the provisions thereof.
Must the franchisor approve the franchisee's site or location before opening?
YesFranchise agreement
Franchisor reserves the sole right of final review and consent to any location of the Restaurant.
Marketing
Is a minimum grand opening advertising spend required?
YesItem 11
Within the first 90 days after the Opening Date, we require that you spend in your Territory at least $5,000 on the grand opening advertising and promotion of the Store, using a grand opening advertising and promotional program that we designate or approve (see section 4.3(d) of the Franchise Agreement).
Is the franchisee required to spend a minimum amount on local advertising or marketing, as a percentage of sales or a fixed amount?
YesItem 6
In addition to the Marketing and Promotion Fees that you pay us, beginning on the Opening Date, you must spend in your Territory $5,000 on the grand opening advertising and promotion of your Store, using a grand opening promotional program set out in the Confidential Operations Manual (the “Manual”) or that we…
Must the franchisee participate in a customer loyalty or rewards program?
YesFranchise agreement
Franchisee must fully participate with any gift card, customer loyalty, referral and other contests and promotions Franchisor arranges for, requires or authorizes Corndogs by Mr. Cow franchisees to participate in.
Must the franchisee participate in a regional advertising cooperative when one exists?
YesFranchise agreement
If Franchisor does so and the Restaurant is within the territory of an existing Cooperative at the time the Restaurant opens for business, Franchisee will immediately become a member of the Cooperative.
Operations
Must the franchisee buy products from a designated distributor?
YesItem 8
You must purchase all proprietary products to be used in preparing Corndogs by Mr. Cow Products from FR.
Must equipment be purchased from designated or approved suppliers?
YesItem 8
You must purchase or lease from our designated supplier the point-of-sale system and imbedded software we then require (“POS System”) that meets our specifications for each Store you own and operate.
Payments
Must the franchisee use a payment processor or merchant-services provider designated or approved by the franchisor?
YesFranchise agreement
Franchisee is required to use a designated brand of point-of-sale system (“POS System”) and merchant services account designated by Franchisor to track and process retail sales at the Restaurant using only the proprietary software provided by Franchisor or its affiliates.
Are royalties and other fees collected by automatic bank debit (ACH or electronic funds transfer) from the franchisee's account?
YesItem 6
We currently require you to pay fees and other amounts due to us or our affiliates by electronic funds transfer (“EFT”) or other similar means.
Must the franchisee participate in a gift card program?
YesFranchise agreement
Franchisee must fully participate with any gift card, customer loyalty, referral and other contests and promotions Franchisor arranges for, requires or authorizes Corndogs by Mr. Cow franchisees to participate in.
People
Does the franchisor require minimum staffing levels or specific roles?
YesItem 15
Additionally, as disclosed in section 8.1(a) of the Franchise Agreement, you must employ at least one designated Store Manager (if you are a sole proprietor, this will be you, and if you are an entity, this will be a Principal Equity Owner of at least 50% of the franchisee entity) who has successfully completed our…
Must employees wear uniforms specified by the franchisor?
YesFranchise agreement
Franchisor is entitled to prescribe standard uniforms and attire for all of Franchisee's personnel to enhance the customer experience at the Restaurant and to protect Franchisor's reputation for quality service.
Point of sale
Must the franchisee use a specific point-of-sale system designated or approved by the franchisor?
YesItem 8
You must purchase or lease from our designated supplier the point-of-sale system and imbedded software we then require (“POS System”) that meets our specifications for each Store you own and operate.
Does the franchisor have independent access to the data in the franchisee's POS or computer system?
YesItem 11
There are no contractual limits on our independent access to the information and data stored on your POS system.
Training
Can the franchisor charge the franchisee for additional, refresher or remedial training?
YesItem 11
We may, at our discretion, charge an additional training fee of up to $750 per day for Corndogs by Mr. Cow training courses, seminars, conferences or other programs that we require you or your representatives to attend.
Is attendance at an annual convention or conference mandatory for the franchisee?
YesItem 11
Attendance of at least one Principal Equity Owner at these meetings will be mandatory (and is highly recommended for your other Principal Equity Owners).
The filing answers no to 3 questions
- Is there a franchisee advisory council, association or committee?Item 20
- Is the franchisee prohibited from operating its own website or social media accounts, or required to use pages the franchisor provides?Item 12
- Must the franchisee use a CRM system designated or approved by the franchisor?Item 8
The vendor opportunity at 1st R Trading
1st R Trading operates 19 franchised quick-service restaurant locations across five states, with no company-owned units disclosed in the 2026 FDD. The system grew 11.8% year-over-year, adding units in a footprint led by Georgia (4) and Hawaii (2). For software vendors, the addressable market is small but concentrated: 19 locations, all franchised, all single-unit operators, and all bound by the same technology mandates.
Who controls software purchasing
The FDD does not name a CIO, CTO, or dedicated technology buyer. James Lee is listed as the agent for service of process, which is a legal role, not a purchasing signal. With only 19 units and no multi-unit operators, software decisions are likely made at the franchisor level by ownership or a small HQ team. Vendors should treat this as a single-decision-maker sale, not a distributed operator-led buying process.
Mandated and current tech stack
Omega Merchant is the only mandated system named in the FDD, covering the core point-of-sale and operational stack. Facebook and Twitter are also listed, indicating a centralized or recommended approach to social and marketing technology. No other operational, HR, inventory, or loyalty systems are disclosed. This creates a clear whitespace for vendors in areas like scheduling, food safety, delivery integration, and franchisee communications — but any pitch must account for the existing Omega Merchant mandate.
Procurement, renewals, and timing
The FDD does not include an Item 8 procurement extract, so the formal supplier designation model is unknown. However, the Omega Merchant mandate implies a designated-supplier approach for at least the POS. Renewal terms are 5 years, with franchisees able to add additional 5-year terms upon 120 days' written notice. With 11.8% unit growth and a small base, new franchise agreements are the most likely trigger for software evaluation and onboarding.
How to read the 1st R Trading FDD
The 2026 FDD is embedded below. For software vendors, the highest-value sections are Item 11 (franchisor obligations and tech mandates), Item 17 (renewal and termination), and Item 20 (outlet growth). The absence of an Item 8 extract means procurement rules are not standardized in the disclosure, so direct outreach to HQ is the most reliable path. If you are building a ranked target list of franchise systems, FranCloud can help you prioritize based on tech mandates, unit growth, and decision-maker concentration.
Ordinary royalty terms
Complete royalty terms are not confirmed.
Questions vendors ask
1st R Trading, answered from the filing
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Operator footprint
Who runs the locations
11 operators run 11 mapped locations. 0 of them are multi-unit. Aggregate counts from the filing; no names.
Operators by units owned
Top states by locations
| GA | 4 |
|---|---|
| HI | 2 |
| IL | 1 |
| NC | 1 |
| VA | 1 |
Related Quick service restaurant brands
Primary franchise filings · updated August 2026. Read the original filing for definitions, conditions, and qualifications.