Binghamton HOTS FDD 2023 8 (1) (2) (3) (4) Fees (1) Amount Due Date Remarks Charges for “mystery Up to $150 Monthly See Note 6. The mystery shopper” quality shopper program will be control evaluation separate from our programs for customer surveys and customer satisfaction audits (which may require you to accept coupons from participating customers for discounted or complimentary items) ServSafe/TIPS (or $150 per person or the As needed Each of your managers and similar) Certification then-current market other employees we rate designate must be ServSafe and TIPS or similarly certified. Payable to an approved supplier Insurance Premiums Reimbursement of our On demand If you do not maintain the costs, plus 10% required insurance coverages, administrative fee we have the right (but not the obligation) to obtain insurance on your behalf Management Fee 10% of Gross Sales, If incurred We may step in and manage plus expenses your Restaurant in certain circumstances, such as death, disability or prolonged absence. We will charge a management fee if we manage your Restaurant, and you must reimburse our expenses Point of Sale System $70 to $125, based on Monthly Payable to approved supplier Support & level of service for the support and Maintenance maintenance of the Toast point of sale system. The monthly charge includes the costs for the online ordering and loyalty programs in which you are required to participate. Binghamton HOTS FDD 2023 9 (1) (2) (3) (4) Fees (1) Amount Due Date Remarks QuickBooks Support $250 Annually Payable to approved supplier. This is optional. At the current time we do not require you to use QuickBooks as your accounting system, but if you do, we recommend you purchase the support contract. Technology Fee (7) $100 Payable monthly on The technology fee will the 1st of the month offset technology related or the next business costs we incur, including day after the 1st those related to an intranet, franchisee portal, maintenance of our website and similar items. Gift Card Program Will vary, depending As incurred Payable to approved supplier. on number of gift cards You must participate in our sold and/or processed gift card program. Gift cards will be available for sale and redemption at any Restaurant in the System. Prohibited Product or $500 per day for each As incurred If you offer any product or Service Fee day the infraction service at your Restaurant continues that we have not approved Operations Manual $2,500 As incurred If your copy of the Replacement Fee Operations Manual is lost or destroyed and you require a replacement copy
From the filings
Binghamton HOTS
Quick service restaurantBinghamton HOTS is a single-unit quick-service restaurant based in New York. The FDD does not disclose a dedicated IT buyer; purchasing decisions likely rest with the owner-operator. The franchise currently mandates Instagram, LinkedIn, QuickBooks, Twitter, and Facebook, and operates one company-owned location with an AUV of $414,194.
For software vendors selling into US franchise brands.
Live signals
Ordinary royalty terms
5% 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 (FY2023)
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.
Binghamton HOTS FDD 2023 8 (1) (2) (3) (4) Fees (1) Amount Due Date Remarks Charges for “mystery Up to $150 Monthly See Note 6. The mystery shopper” quality shopper program will be control evaluation separate from our programs for customer surveys and customer satisfaction audits (which may require you to accept coupons from participating customers for discounted or complimentary items) ServSafe/TIPS (or $150 per person or the As needed Each of your managers and similar) Certification then-current market other employees we rate designate must be ServSafe and TIPS or similarly certified. Payable to an approved supplier Insurance Premiums Reimbursement of our On demand If you do not maintain the costs, plus 10% required insurance coverages, administrative fee we have the right (but not the obligation) to obtain insurance on your behalf Management Fee 10% of Gross Sales, If incurred We may step in and manage plus expenses your Restaurant in certain circumstances, such as death, disability or prolonged absence. We will charge a management fee if we manage your Restaurant, and you must reimburse our expenses Point of Sale System $70 to $125, based on Monthly Payable to approved supplier Support & level of service for the support and Maintenance maintenance of the Toast point of sale system. The monthly charge includes the costs for the online ordering and loyalty programs in which you are required to participate.
In addition to these activities, we may also establish an intranet through which downloads of operations and marketing materials, exchanges of franchisee email, System discussion forums and System- wide communications (among other activities) can be done. You may not maintain your own website; otherwise maintain a presence or advertise on the internet or any other mode of electronic commerce in connection with your Restaurant; establish a link to any website we establish at or from any other website or page; or at any time establish any other website, electronic commerce presence or URL which in whole or in part incorporates the “Binghamton HOTS” name or any names confusingly similar to the Proprietary Marks. You are not permitted to promote your Restaurant or use any of the Proprietary Marks in any manner on any social or networking websites, such as Facebook, Foursquare, Instagram, LinkedIn or Twitter, without our prior written consent. We will control all social media initiatives. You must comply with our System standards regarding the use of social media in your Restaurant’s operation, including prohibitions on your and the Restaurant’s employees posting or blogging comments about the Restaurant or the System, other than on a website established or authorized by us (“social media” includes personal blogs, common social networks like Facebook, Foursquare, Instagram and MySpace, professional networks like LinkedIn, live-blogging tools like Twitter, virtual worlds, file, audio and video-sharing sites, and other similar social networking or media sites or tools). We will provide access to branded social media pages/handles/assets, and you must update these regularly. We have the right to conduct collective/national campaigns via local social media on your behalf.
You are not permitted to promote your Restaurant or use any of the Proprietary Marks in any manner on any social or networking websites, such as Facebook, Foursquare, Instagram, LinkedIn or Twitter, without our prior written consent. We will control all social media initiatives. You must comply with our System standards regarding the use of social media in your Restaurant’s operation, including prohibitions on your and the Restaurant’s employees posting or blogging comments about the Restaurant or the System, other than on a website established or authorized by us (“social media” includes personal blogs, common social networks like Facebook, Foursquare, Instagram and MySpace, professional networks like LinkedIn, live-blogging tools like Twitter, virtual worlds, file, audio and video-sharing sites, and other similar social networking or media sites or tools). We will provide access to branded social media pages/handles/assets, and you must update these regularly. We have the right to conduct collective/national campaigns via local social media on your behalf.
In addition to these activities, we may also establish an intranet through which downloads of operations and marketing materials, exchanges of franchisee email, System discussion forums and System- wide communications (among other activities) can be done. You may not maintain your own website; otherwise maintain a presence or advertise on the internet or any other mode of electronic commerce in connection with your Restaurant; establish a link to any website we establish at or from any other website or page; or at any time establish any other website, electronic commerce presence or URL which in whole or in part incorporates the “Binghamton HOTS” name or any names confusingly similar to the Proprietary Marks. You are not permitted to promote your Restaurant or use any of the Proprietary Marks in any manner on any social or networking websites, such as Facebook, Foursquare, Instagram, LinkedIn or Twitter, without our prior written consent. We will control all social media initiatives. You must comply with our System standards regarding the use of social media in your Restaurant’s operation, including prohibitions on your and the Restaurant’s employees posting or blogging comments about the Restaurant or the System, other than on a website established or authorized by us (“social media” includes personal blogs, common social networks like Facebook, Foursquare, Instagram and MySpace, professional networks like LinkedIn, live-blogging tools like Twitter, virtual worlds, file, audio and video-sharing sites, and other similar social networking or media sites or tools). We will provide access to branded social media pages/handles/assets, and you must update these regularly. We have the right to conduct collective/national campaigns via local social media on your behalf.
You are not permitted to promote your Restaurant or use any of the Proprietary Marks in any manner on any social or networking websites, such as Facebook, Foursquare, Instagram, LinkedIn or Twitter, without our prior written consent. We will control all social media initiatives. You must comply with our System standards regarding the use of social media in your Restaurant’s operation, including prohibitions on your and the Restaurant’s employees posting or blogging comments about the Restaurant or the System, other than on a website established or authorized by us (“social media” includes personal blogs, common social networks like Facebook, Foursquare, Instagram and MySpace, professional networks like LinkedIn, live-blogging tools like Twitter, virtual worlds, file, audio and video-sharing sites, and other similar social networking or media sites or tools). We will provide access to branded social media pages/handles/assets, and you must update these regularly. We have the right to conduct collective/national campaigns via local social media on your behalf.
Franchisor behaviours
What the franchisor requires
23 requirements the franchisor states in this filing, each in its own words; 3 explicit no's; 8 questions the text does not settle, which is not a no.
Accounting
Must the franchisee submit periodic financial statements (monthly, quarterly or annual) to the franchisor?
YesFranchise agreement
You shall, at your expense, provide to us a complete annual financial statement (which shall be reviewed) prepared by an independent certified public accountant by April 15th of each year during the term hereof showing the results of the Restaurant’s operations during the previous calendar year.
How the franchisor buys
Does the franchisor reserve the right to change designated suppliers or systems at any time?
YesFranchise agreement
We reserve the right, at our option, to re-inspect from time to time the facilities and products of any such approved supplier and to revoke our approval upon the supplier’s failure to continue to meet any of our then-current criteria.
Does the franchisor or an affiliate receive rebates, commissions or other revenue from designated or approved suppliers?
YesFranchise agreement
You understand and acknowledge that we may periodically receive payments from approved suppliers, such as in the form of rebates, based on such approved suppliers’ sales of products and services to our franchisees.
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?
80Item 8
approximately 80% of your total purchases in the continuing operation of the Restaurant.
Does the franchisor charge a fee to evaluate a proposed supplier?
YesFranchise agreement
You shall reimburse the reasonable expenses we incur related to our evaluation of the proposed product or supplier, but not more than One Thousand Dollars ($1,000).
Can a franchisee propose a new supplier for the franchisor's approval?
YesItem 8
If you wish to purchase, lease or use any products that we have not previously approved, or purchase or lease from a supplier we have not previously approved, you must submit a written request for approval or you must request the supplier to do so.
Communications
Does the franchisor own or control the business telephone numbers, or take them over when the agreement ends?
YesFranchise agreement
or will acquire during the term of the Franchise Agreement, certain right, title, and interest in and to those certain telephone numbers and regular, classified, internet page, and other telephone directory listings (collectively, the “Telephone Listings”) related to the Franchised Business or the Marks.
Franchise management
Must the franchisee participate in a customer-satisfaction or net-promoter survey program?
YesFranchise agreement
You shall participate in all customer surveys and satisfaction audits, which may require that you provide discounted or complimentary products, provided that such discounted or complimentary sales shall not be included in the Gross Sales of the Restaurant.
Does the franchisor conduct periodic inspections, audits or evaluations of the franchised business?
YesItem 11
As we reasonably determine necessary, visits to and evaluations of the Restaurant and the products and services provided to make sure that our high standards of quality, appearance and service of the System are maintained.
Can the franchisor change the operations manual and brand standards unilaterally?
YesFranchise agreement
We may from time to time revise the contents of the Manuals and the contents of any other manuals and materials created or approved for use in the operation of the Franchised Business.
Must the franchisor approve the franchisee's site or location before opening?
YesFranchise agreement
No site may be used for the location of the Restaurant unless it is first accepted in writing by us.
Marketing
Is the franchisee prohibited from operating its own website or social media accounts, or required to use pages the franchisor provides?
YesItem 11
You may not maintain your own website; otherwise maintain a presence or advertise on the internet or any other mode of electronic commerce in connection with your Restaurant; establish a link to any website we establish at or from any other website or page; or at any time establish any other website, electronic…
Is a minimum grand opening advertising spend required?
YesItem 11
You must conduct a marketing campaign announcing the grand opening of your Restaurant, and you must spend between $2,500 and $5,000 for this campaign.
Is the franchisee required to spend a minimum amount on local advertising or marketing, as a percentage of sales or a fixed amount?
YesItem 11
You must conduct local marketing in your Designated Territory, and you must spend at least 1% of Gross Sales each month on local marketing for your Restaurant.
Must the franchisee participate in a customer loyalty or rewards program?
YesItem 11
The monthly charge includes the charges for our online ordering and loyalty programs in which you are required to participate.
Must the franchisee participate in a regional advertising cooperative when one exists?
YesItem 11
If a Cooperative has been established for a geographic area where your Restaurant is located when the Franchise Agreement is signed, or if any Cooperative is established during the term of the Franchise Agreement, you must become a member of the Cooperative.
Operations
Must equipment be purchased from designated or approved suppliers?
YesItem 8
You must obtain all food and beverage items, ingredients, supplies, materials, fixtures, furnishings, equipment (including point of sale system and communication systems), and other products used or offered for sale at the Restaurant solely from suppliers who demonstrate, to our continuing reasonable satisfaction…
Payments
Are royalties and other fees collected by automatic bank debit (ACH or electronic funds transfer) from the franchisee's account?
YesItem 6
The Royalty Fee and Brand Development Fee will be withdrawn from your designated bank account by electronic funds transfer (“EFT”) weekly on Wednesday based on the Restaurant’s Gross Sales for the preceding week ending Sunday.
Must the franchisee participate in a gift card program?
YesFranchise agreement
You shall sell, issue, and redeem (without any offset against any Royalty Fees) Gift Cards in accordance with procedures and policies specified by us in the Manuals or otherwise in writing
People
Does the franchisor require minimum staffing levels or specific roles?
YesFranchise agreement
You affirm, warrant and understand that you may staff the Franchised Business with as many employees as you desire at any time so long as our minimal staffing levels are achieved.
Point of sale
Must the franchisee use a specific point-of-sale system designated or approved by the franchisor?
YesItem 11
You must purchase or lease and use the Toast POS point of sale system, and certain computer hardware and software that meet our specifications and that are capable of electronically interfacing with our computer system.
Does the franchisor have independent access to the data in the franchisee's POS or computer system?
YesItem 11
The computer system is designed to enable us to have immediate access to the information monitored by the system, and there is no contractual limitation on our access or use of the information we obtain.
Training
Can the franchisor charge the franchisee for additional, refresher or remedial training?
YesFranchise agreement
We reserve the right to conduct additional or refresher training programs, seminars and other related activities regarding the operation of the Restaurant.
The filing answers no to 3 questions
- Is the franchisor or an affiliate itself a supplier of required products, services or systems?Item 8
- Is there a franchisee advisory council, association or committee?Item 11
- Is attendance at an annual convention or conference mandatory for the franchisee?Franchise agreement
The vendor opportunity at Binghamton HOTS
Binghamton HOTS presents a minimal addressable market for software vendors, with just one company-owned quick-service restaurant. The brand reported an AUV of $414,194 in its 2023 FDD and does not disclose any franchisee units, suggesting it is essentially a single-location operation. For vendors, this means the entire software purchasing decision rests with a single entity.
Who controls software purchasing
The FDD does not name any HQ executives, so the buyer is likely the owner-operator. With no multi-unit operators and no franchised locations, there is no separate franchisee buying center. Any software pitch must be directed at the individual who runs the single unit.
Mandated and current tech stack
The franchisor mandates five platforms: Instagram, LinkedIn, QuickBooks, Twitter, and Facebook. These are all social media and accounting tools; no POS, scheduling, or inventory management systems are mentioned. This suggests the operation may be using consumer-grade or off-the-shelf solutions for other functions, leaving potential gaps for vendors to fill—if they can convince the owner to switch.
Procurement, renewals, and timing
Item 8 of the FDD provides no procurement signals, so there is no designated supplier list or approved vendor program. The franchise agreement has a 10-year initial term, with renewal conditions that include a notice requirement, compliance, possible remodeling, and a general release. Renewal may also involve a revised territory for urban settings. For software vendors, the renewal window could be an opportunity to propose new systems, but with only one unit, the decision cycle is likely informal and ad hoc.
How to read the Binghamton HOTS FDD
The full 2023 FDD is available in the embedded viewer below. It was filed with state franchise regulators and contains the legal and financial disclosures required by the FTC Franchise Rule. Key sections for software vendors include Item 11 (mandated technology), Item 8 (procurement restrictions), and Item 17 (renewal and termination). Because Binghamton HOTS is a single-unit operation, the document is relatively short and straightforward.
For a ranked target list of franchise systems with higher unit counts and clearer buying signals, reach out to FranCloud.
Ordinary royalty terms
Complete royalty terms are not confirmed.
Questions vendors ask
Binghamton HOTS, answered from the filing
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Operator footprint
Who runs the locations
2 operators run 2 mapped locations. 0 of them are multi-unit. Aggregate counts from the filing; no names.
Operators by units owned
Top states by locations
| HI | 1 |
|---|---|
| IN | 1 |
Related Quick service restaurant brands
Primary franchise filings · updated August 2026. Read the original filing for definitions, conditions, and qualifications.