We do not provide for placement of local advertising on your behalf, and we have no obligation to spend any amount on advertising in your area or territory. You are responsible for local advertising placement. If feasible, you may do cooperative advertising with other Break Coffee Co. franchisees in your area, with our prior written approval. You may not maintain any business profile on Facebook, Twitter, Instagram, LinkedIn, YouTube or any other social media and/or networking site without our prior written approval.
From the filings
Break Coffee Co.
Professional servicesSoftware purchasing at Break Coffee Co. is controlled at the franchisor level, where the FDD mandates a customized, cloud-based customer management platform and requires franchisees to maintain mobile and laptop/tablet hardware. The system has 11 total units — 9 franchised and 2 company-owned — giving vendors a small but concentrated target. The 2026 FDD names QuickBooks and major social platforms, but the binding technology requirements center on the CMP and compatible devices.
For software vendors selling into US franchise brands.
Live signals
Ordinary royalty terms
12% 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
Systems named in Item 11 of this filing. None is recorded as mandated here, which is not the same as the filing mandating nothing. Read Item 11 before treating the category as open.
We do not provide for placement of local advertising on your behalf, and we have no obligation to spend any amount on advertising in your area or territory. You are responsible for local advertising placement. If feasible, you may do cooperative advertising with other Break Coffee Co. franchisees in your area, with our prior written approval. You may not maintain any business profile on Facebook, Twitter, Instagram, LinkedIn, YouTube or any other social media and/or networking site without our prior written approval. You are not required to participate in any local or regional advertising cooperative.
We do not provide for placement of local advertising on your behalf, and we have no obligation to spend any amount on advertising in your area or territory. You are responsible for local advertising placement. If feasible, you may do cooperative advertising with other Break Coffee Co. franchisees in your area, with our prior written approval. You may not maintain any business profile on Facebook, Twitter, Instagram, LinkedIn, YouTube or any other social media and/or networking site without our prior written approval. You are not required to participate in any local or regional advertising cooperative.
You are required to have a mobile phone and an internet-capable laptop computer or smart tablet that can operate the latest versions of software and applications platforms we require. You are required to use our customized, cloud-based customer management platform (“CMP”). Quickbooks is recommended for bookkeeping. The CMP is used for customer data collection and billing. You must purchase the required technology hardware and software, at your expense. If you do not have an existing mobile phone or computer or tablet to access and use the CMP, your cost to purchase this hardware is approximately $1,000.
We do not provide for placement of local advertising on your behalf, and we have no obligation to spend any amount on advertising in your area or territory. You are responsible for local advertising placement. If feasible, you may do cooperative advertising with other Break Coffee Co. franchisees in your area, with our prior written approval. You may not maintain any business profile on Facebook, Twitter, Instagram, LinkedIn, YouTube or any other social media and/or networking site without our prior written approval. You are not required to participate in any local or regional advertising cooperative.
We do not provide for placement of local advertising on your behalf, and we have no obligation to spend any amount on advertising in your area or territory. You are responsible for local advertising placement. If feasible, you may do cooperative advertising with other Break Coffee Co. franchisees in your area, with our prior written approval. You may not maintain any business profile on Facebook, Twitter, Instagram, LinkedIn, YouTube or any other social media and/or networking site without our prior written approval. You are not required to participate in any local or regional advertising cooperative.
Franchisor behaviours
What the franchisor requires
26 requirements the franchisor states in this filing, each in its own words; 4 explicit no's; 4 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
12.2.1 Franchisee agrees to keep and maintain complete and accurate books and records of its transactions and business operations using the accounting procedures and chart of accounts specified by Franchisor.
Does the franchisor have direct or independent electronic access to the franchisee's financial, sales or customer records?
YesItem 11
We have remote and independent access to all information generated by and stored by you in the CMP, including your revenue information and customer data.
Must the franchisee submit periodic financial statements (monthly, quarterly or annual) to the franchisor?
YesFranchise agreement
Within fifteen (15) days after the close of each calendar quarter and within ninety (90) days after the close of each fiscal year, Franchisee will furnish Franchisor a full and complete written statement of income and expense and a profit and loss statement for the operation of the Franchised Business during said…
How the franchisor buys
Is the franchisor or an affiliate itself a supplier of required products, services or systems?
YesItem 8
You are required to purchase all Break Coffee Beverage Machines, filtered/sparkling water machines, coffee machine equipment and attachments, coffee beans, tea, tea making equipment, cold brew products, creamers, sweeteners, machine cleaning products, and paper products from our affiliate Break Coffee Supply Co LLC.
Does the franchisor reserve the right to change designated suppliers or systems at any time?
YesFranchise agreement
Franchisor has full rights to vary standard specifications and practices for any other franchisee at any time without giving Franchisee comparable rights.
How much revenue did the franchisor and its affiliates earn from franchisee purchases in the last fiscal year?
843902.82Item 8
During the last fiscal year ending December 31, our affiliate XD Franchising, LLC, received $843,902.82 from franchisees’ required coffee purchases.
Does the franchisor or an affiliate receive rebates, commissions or other revenue from designated or approved suppliers?
YesItem 8
During the last fiscal year ending December 31, our affiliate XD Franchising, LLC, received $843,902.82 from franchisees’ required coffee purchases.
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
We estimate that your purchase or lease of products, supplies and services from approved suppliers (or those which meet our specifications) will represent approximately 50% of your costs to establish your Franchised Business and approximately 80% of your costs for ongoing operation.
Does the franchisor charge a fee to evaluate a proposed supplier?
YesItem 8
We reserve the right to charge you a fee equal to the actual costs of our inspection and testing.
Can a franchisee propose a new supplier for the franchisor's approval?
YesItem 8
If you would like us to consider another item or supplier, you must make such request in writing to us and have the supplier give us samples of its product or service and such other information that we may require.
Communications
Does the franchisor own or control the business telephone numbers, or take them over when the agreement ends?
YesFranchise agreement
Franchisee shall execute such forms and documents, including the Internet Advertising, Social Media, Software, and Telephone Listing Agreement contained in Attachment 8, to appoint Franchisor its true and lawful attorney-in-fact, with full power and authority, for the sole purpose of assigning to Franchisor…
Data and IT
Must the franchisee comply with PCI, data-security or cybersecurity standards set by the franchisor?
YesFranchise agreement
Franchisee shall comply with Franchisor’s data privacy policies, as well as industry standards, Payment Card Industry Data Security Standard, and appliable law regarding the collection, storage, disclosure, processing, and use of customer data, including if and when required, providing privacy notices and obtaining…
Franchise management
Must the franchisee participate in a customer-satisfaction or net-promoter survey program?
YesFranchise agreement
Franchisor reserves the right to establish quality assurance programs conducted by third-party providers, including, but not limited to, satisfaction surveys and periodic quality assurance audits (“Quality Review Services”). Upon Franchisor’s request and at Franchisee’s sole cost and expense, Franchisee shall…
Does the franchisor conduct periodic inspections, audits or evaluations of the franchised business?
YesItem 11
conduct inspections of your Franchised Business, including our attendance at your service calls, at the frequency and duration that we deem advisable.
Can the franchisor change the operations manual and brand standards unilaterally?
YesItem 17
We may change the and 19.1.4 operations manual and System standards at any time.
Marketing
Is the franchisee prohibited from operating its own website or social media accounts, or required to use pages the franchisor provides?
YesFranchise agreement
Franchisee shall not establish any website or other listing on the Internet except as provided and specifically permitted herein.
Is a minimum grand opening advertising spend required?
YesFranchise agreement
Franchisee shall spend a minimum of Five Thousand Dollars ($5,000.00) on Local Advertising and promotional activities in the Territory within ninety (90) following the Effective Date hereof to promote the opening of the Franchised Business.
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
Following your grand opening campaign, you are required to spend at least Five Hundred Dollars ($500.00) per month on advertising for the Franchised Business in your territory unless and until you place and maintain 25 Break Coffee Beverage Machines in your Territory.
Operations
Must the franchisee buy products from a designated distributor?
YesItem 8
You are required to purchase all Break Coffee Beverage Machines, filtered/sparkling water machines, coffee machine equipment and attachments, coffee beans, tea, tea making equipment, cold brew products, creamers, sweeteners, machine cleaning products, and paper products from our affiliate Break Coffee Supply Co LLC.
Must equipment be purchased from designated or approved suppliers?
YesItem 8
You are required to purchase all Break Coffee Beverage Machines, filtered/sparkling water machines, coffee machine equipment and attachments, coffee beans, tea, tea making equipment, cold brew products, creamers, sweeteners, machine cleaning products, and paper products from our affiliate Break Coffee Supply Co LLC.
Payments
Must the franchisee use a payment processor or merchant-services provider designated or approved by the franchisor?
YesFranchise agreement
Customer Payments (“Customer Payments”) shall be made through Franchisor’s centralized payment processing systems.
Are royalties and other fees collected by automatic bank debit (ACH or electronic funds transfer) from the franchisee's account?
YesFranchise agreement
At Franchisor’s request, Franchisee must execute documents that allow Franchisor to automatically take any sums due Franchisor, from business bank accounts via electronic funds transfers.
Point of sale
Does the franchisor have independent access to the data in the franchisee's POS or computer system?
YesItem 11
We have remote and independent access to all information generated by and stored by you in the CMP, including your revenue information and customer data.
Sales and CRM
Must the franchisee use a CRM system designated or approved by the franchisor?
YesItem 11
You are required to use our customized, cloud-based customer management platform (“CMP”).
Training
Can the franchisor charge the franchisee for additional, refresher or remedial training?
YesItem 11
We have the right to impose a reasonable fee for all additional training programs, including the annual convention.
Is attendance at an annual convention or conference mandatory for the franchisee?
YesItem 11
If we require it, you must attend an annual business meeting or convention for up to days (3) days and mandatory additional training offered by us for up to three (3) days per year.
The filing answers no to 4 questions
- Is there a franchisee advisory council, association or committee?Item 11
- Must the franchisor approve the franchisee's site or location before opening?Franchise agreement
- Must the franchisee participate in a regional advertising cooperative when one exists?Item 11
- Does the franchisor require minimum staffing levels or specific roles?Franchise agreement
The vendor opportunity at Break Coffee Co. Break Coffee Co. operates 11 total units — 9 franchised and 2 company-owned — with franchised outlets growing 12.5% year over year. The Item 19 figure is $214,524, based on a cohort of 7 of 8 full-year franchised outlets that provided financial data; all were previously Xpresso Delight franchisees and have re-branded to Break Coffee Co. For software vendors, the addressable market is small but concentrated: a franchisor-mandated technology stack means one HQ decision can reach every location.
Who controls software purchasing Technology decisions are centralized at the franchisor level. The Franchise Agreement requires franchisees to use the franchisor's customized, cloud-based customer management platform (CMP) and to maintain hardware capable of running the latest required software. Item 2 names Joshua Kovacs as Chief Executive Officer, with Paul Crabtree, Nigell Lee, Robert Huntington, and Steve Nave serving as directors. Break Coffee Co. is part of Westside Xpresso Delight.
Tech named in the FDD, and what is actually required The FDD's own words in Item 11 state: "You are required to use our customized, cloud-based customer management platform ("CMP")." Franchisees must also have a mobile phone and an internet-capable laptop computer or smart tablet that can operate the latest versions of required software and applications platforms. The FDD names QuickBooks by Intuit, Facebook by Meta, Instagram by Meta, LinkedIn, Twitter by X, and YouTube by Google in Item 11. The CMP is the binding operational system; the other named platforms appear in the filing without a stated requirement.
Procurement, renewals, and timing Item 8 establishes a designated-supplier model. Franchisees must purchase all equipment, fixtures, inventory, supplies, and services from designated suppliers or per specifications. Break Coffee Supply Co LLC is the only approved supplier for Break Coffee Beverage Machines, filtered/sparkling water machines, coffee machine equipment and attachments, coffee beans, and tea. XD Operations, LLC is the sole designated supplier of centralized billing services. Franchisees may propose a supplier for approval. The FDD estimates approved-supplier purchases represent roughly 50% of establishment costs and 80% of ongoing operating costs. Renewal under Item 17 is for one additional 10-year term, conditioned on good standing, at least 5 Break Coffee Beverage Machines in place, no more than three defaults, 90–180 days written notice, a renewal fee of 10% of the then-current initial franchise fee, equipment upgrades to then-current specifications, a general release, and completion of additional training. The franchisor may require a materially different renewal agreement.
How to read the Break Coffee Co. FDD The embedded PDF below is Break Coffee Co.'s 2026 Franchise Disclosure Document. Item 11 covers technology and training requirements, Item 8 governs supplier restrictions, Item 17 addresses renewal and termination, and Item 19 provides the financial performance representation. For a ranked target list of franchise systems that match your software category, talk to FranCloud.
Ordinary royalty terms
Complete royalty terms are not confirmed.
Questions vendors ask
Break Coffee Co., answered from the filing
Read the filing itself
Read the original document for the filing figures and their terms, page by page. Buy the original PDF to download, search, and annotate it.
View only A one-time purchase: the original filing, yours to keep.
FDD alert
Tell me when this brand refiles.
Request an email alert when a newer filing for Break Coffee Co. is available.
Operator footprint
Break Coffee Co.’s FDD on file does not disclose a franchisee directory.
Ownership
The portfolio behind Break Coffee Co.
Parent company: Westside Xpresso Delight LLC.
Related Professional services brands
Primary franchise filings · updated September 2026. Read the original filing for definitions, conditions, and qualifications.