You will be required to purchase and maintain, at your own expense, such computer hardware, printers, modems and other related computer accessories to run various software programs. The computer must run Microsoft Windows and have the capacity to run all of the following programs quickly and efficiently: Microsoft Word, Microsoft Excel, QuickBooks or another approved accounting software, high speed internet access and an e-mail program. Generally, we will require you to purchase a new computer system that has sufficient memory, RAM, and an operating system to run all of its required programs in an efficient manner. We will provide you with our minimum requirements for a computer system we believe necessary to run these programs. We may require that you upgrade your system from time to time to maintain the sufficient computer hardware to sufficiently run all of our required programs. We may change our requirements from time to time but will provide you with adequate notice of any change. Your computer will be used for recipe planning, word processing, calendar promotion, performance tracking, e-mail correspondence and to prepare spreadsheets. If you want to use other software with your computer, you must first submit information to us showing the software will perform the same functions as those we require or recommend and obtain our approval.
From the filings
Breadsmith
Retail foodSoftware purchasing at Breadsmith is controlled at the franchisor level, with the FDD mandating specific systems for franchisees. The brand operates 32 total locations (28 franchised, 4 company-owned), and its 2026 Franchise Disclosure Document names QuickBooks and Toast as required technology. For vendors, this is a small but tightly standardized account where HQ approval is the gatekeeper.
For software vendors selling into US franchise brands.
Live signals
Ordinary royalty terms
Complete royalty terms unconfirmed
Complete royalty terms are not confirmed for the selected filing.
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.
Since most of the items you will purchase to begin operating a BREADSMITH bakery must meet our specifications, you can expect that the items you purchase in accordance with our specifications will represent 100% of the total purchases you will make to begin operations. Once you begin operating, the primary items you will purchase that must meet our specifications are food ingredients and supplies. We would expect these items to represent between 25% and 30% of your total annual expenses. You are required to purchase the computer equipment as described in Item 11 to operate your store and we require you to purchase the Toast Register System as described in Item 11. Required and approved suppliers We are the only approved supplier for the oven and mixer you will need to purchase for your store. We sell these items at prices we believe to represent a reasonable wholesale markup. Neither we nor our officers have any interest or ownership in any other supplier for your business.
The vendor opportunity at Breadsmith
Breadsmith operates 32 locations in the US — 28 franchised and 4 company-owned. Franchised-outlet growth year over year is 0.0%, so the addressable market for software vendors is essentially fixed at 32 units. The FDD makes no financial performance representation under Item 19, so no average unit volume figure is available. Initial franchise terms run 15 years, with one renewal term of 15 years.
For software vendors, the opportunity is not in rapid expansion but in compliance-driven replacement and add-on sales. The FDD mandates specific systems and requires franchisees to obtain HQ approval for any non-designated software, making Breadsmith a centralized, low-churn account if you can win the HQ relationship.
Who controls software purchasing
Item 2 of the FDD names DANIEL R. STERLING (Chairman, Director, and Founder), TIM MALOUF (President and CEO), KEVIN SCHUK (Vice President), and SANDY COPP (Creative Director). The franchisor controls technology standards: franchisees must submit any proposed non-designated software to HQ for approval, and HQ can require upgrades to meet current standards. The buying center is therefore concentrated at the franchisor level, not the franchisee level.
Tech named in the FDD, and what is actually required
Item 11 of the FDD obliges franchisees to use QuickBooks by Intuit. The filing states that a fee covers ongoing support, cloud hosting, and software licensing. Item 8 obliges franchisees to use Toast: "Presently, we require you to purchase Toast’s hardware and programming, which integrates credit card and gift card transactions into the Point of Sale system." Franchisees must also participate in Breadsmith's Ordering and Loyalty Program.
The FDD further requires franchisees to purchase and maintain computer hardware, printers, modems, and related accessories to run required software. Franchisees who want to use other software must first submit information to HQ showing it performs the same functions as required or recommended software and obtain approval. There is no contractual limit on the frequency and cost of software upgrades, but hardware upgrades costing more than $500 cannot be required more than once every 24 months unless the hardware is broken and not feasible to fix.
Procurement, renewals, and timing
Item 8 establishes an approved-supplier model. Breadsmith is the only approved supplier for the oven and mixer. For all other items — including computer hardware and software — franchisees must meet BFI specifications, and BFI provides required manufacturer and model numbers plus lists of approved suppliers. Franchisees may propose a supplier for approval. The FDD states that no special benefits are provided to franchisees based on their use of any approved supplier.
Renewal terms under Item 17: compliant franchisees may renew for one additional 15-year term. They must notify the franchisor at least 240 days in advance, pay a renewal fee, sign a new agreement that may have materially different terms, and make necessary expenditures to renovate and modernize the store.
How to read the Breadsmith FDD
The embedded PDF below is Breadsmith's 2026 Franchise Disclosure Document. For software vendors, the critical sections are Item 8 (supplier restrictions and designated vendors), Item 11 (technology requirements and approval rights), and Item 17 (renewal and modernization triggers). Item 19 makes no financial performance representation. Use these items to map the compliance surface and identify where your product fits — or where an incumbent is already mandated. For a ranked target list of franchise systems matched to your software category, talk to FranCloud.
Ordinary royalty terms
Complete royalty terms are not confirmed.
Questions vendors ask
Breadsmith, answered from the filing
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Primary franchise filings · updated October 2026. Read the original filing for definitions, conditions, and qualifications.