The vendor opportunity at Barrio
Barrio operates 20 total units—12 franchised and 8 company-owned—making it a small but expanding target for software vendors. Franchised outlets grew 71.4% year over year, which means new franchisees are onboarding and will need to comply with the franchisor's technology mandates from day one. The Item 19 financial performance representation covers a cohort of 17 restaurants (7 company-owned, 1 affiliate-owned, 9 franchised) that operated for all of calendar year 2023, excluding concession stands and outlets. That cohort reported an average of $2,136,368.12 in sales.
Who controls software purchasing
Software purchasing is controlled at the franchisor level. Barrio's FDD requires franchisees to install computer, point-of-sale, and billing systems according to franchisor specifications. Franchisees must purchase the designated computer hardware, software, billing system, and subscriptions from suppliers the franchisor specifies—which may be limited to Barrio or its affiliates. Within 60 days of notice, franchisees must obtain any newly designated components and ensure the system is functioning properly. The franchisor also designates the point-of-sale and management software for customer orders, inventory, accounting, and back-office. No individual executives are named in the FDD excerpt.
Tech named in the FDD, and what is actually required
The FDD names no specific technology vendors. Item 11 states that franchisees must install their computer, point-of-sale, and billing systems in accordance with Barrio's specifications. The franchisor periodically designates the computer system, software licenses, maintenance, support services, and related services. Franchisees must obtain the point-of-sale and management software Barrio designates to manage customer orders, inventory, accounting, and back-office. The FDD also notes that Barrio has negotiated purchase arrangements with designated or approved suppliers for point-of-sale technology, customer loyalty services, and accounting, inventory, and other back-office software. Barrio and its affiliates reserve the right to receive revenue or other consideration from suppliers.
Procurement, renewals, and timing
Barrio uses an approved-supplier list model. Franchisees must purchase or lease leasehold improvements, kitchen equipment, computer and office equipment, fixtures, furnishings, decor, signage, insurance, inventory, uniforms, advertising, training, supplies, programs, third-party delivery services, and other items only from franchisor-approved suppliers. The Operations Manual lists approved suppliers, and franchisees may request approval for alternative suppliers. Barrio estimates that total expenditures from approved suppliers will represent approximately 50% of total purchases and expenses in establishing and operating a franchise. The initial term is 10 years. Renewal is available for up to two additional 5-year terms, subject to compliance with all agreements, refurbishment to current standards, signing the then-current franchise agreement, paying a renewal fee, and signing a general release of claims.
How to read the Barrio FDD
The embedded PDF below is Barrio's 2024 Franchise Disclosure Document. Item 2 names the officers, Item 8 sets supplier restrictions, Item 11 covers technology and training requirements, Item 17 addresses renewal and termination, Item 19 contains the financial performance representation, and Item 20 lists outlets. For software vendors, the key sections are Item 11 (technology mandates) and Item 8 (approved suppliers). Talk to FranCloud for a ranked target list of franchise systems that match your software category.
Ordinary royalty terms
Complete royalty terms are not confirmed.