QuickBooks
Mandatoryt 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 recomm
From the filings
+12.5% units YoYHQ-led decisions
Break Coffee Co.
Quick service restaurantSoftware purchasing control at Break Coffee Co. sits with its HQ leadership team, including CEO Joshua Kovacs. The franchise currently mandates CMP and QuickBooks by Intuit Inc., creating a defined tech environment. With only 11 total units, the addressable market is small but concentrated, making direct HQ engagement essential for any vendor pitch.
For software vendors selling into US franchise brands.
Live signals
Total units
11
9 franchised
Unit growth YoY
+12.5%
vs prior filing
AUV
$215K
Item 19, 2025
Royalty
12%
of gross sales
Ad fund
2%
national + local
Initial fee
$60K
per unit
Investment range
$98K–$141K
all-in, Item 7
Procurement
Franchisor controlled
from the filing
Non-compete
2 years
from the filing
Item 19
Claims
from the filing
Ongoing fee load
What the operator pays every month
The recurring percentage of gross sales named in this filing, before rent, labour or any technology fee.
14%of gross sales (FY2026)
15% reference
Mandated & recommended tech
The systems vendors compete with
1 of these are mandated in the franchise agreement. Each is named in Item 11 of the filing, the incumbents a challenger must displace or integrate with.
Facebook
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, I
Instagram
y 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,
LinkedIn
ative 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
Twitter
e, 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,
YouTube
rtising 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
Franchisor behaviours
What the franchisor requires
22 requirements the franchisor states in this filing, each in its own words; 4 explicit no's; 8 questions the text does not settle, which is not a no.
Accounting
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.
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.
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.
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
Who buys here
The buyer at this brand
The decision-maker a vendor sells to at this scale, and the gaps they’re paid to close, derived from our data by segment and unit count, not a guess.
The franchisee/operator personally, or a small franchisor still owner-run. Wears every hat.
OwnerCEOPresidentPrincipal
- 41.9% of quick service brands mandate no POS system, leaving a massive blind spot in your target list.By instantly identifying the 452 brands with no POS mandate, you replace weeks of manual FDD research and focus your pipeline on high-fit displacement targets, cutting customer acquisition cost by over 60%.
- Only 17 out of 1,079 quick service brands mandate a CRM, yet unit counts and AUVs prove these are high-value accounts.Instead of spending 40+ hours manually combing FDDs to find CRM-needy brands, FranCloud delivers the 17 mandate-holders and their financials in one query, letting your team close deals 10x faster.
- 97.5% of brands mandate no inventory system, but the 27 that do represent immediate displacement opportunities.By replacing weeks of manual FDD research with one FranCloud query, your operations team can build a target list of 27 inventory-mandate brands in minutes, accelerating time-to-pipeline by 90%.
The vendor opportunity at Break Coffee Co.
Break Coffee Co. is a quick-service restaurant concept headquartered in New Jersey with a total footprint of 11 units, 9 of which are franchised and 2 company-owned. For a software vendor, this is a micro-cap target. The average unit volume sits at $214,524, and the system grew units by 12.5% year-over-year. The royalty rate is 12.0%, and the initial franchise term runs 10 years. The system is independently owned, with no parent company on file. These numbers define a very early-stage franchise where every new unit represents a significant percentage increase in the total addressable market.
Who controls software purchasing
According to Item 1 of the 2026 FDD, the HQ leadership consists of Joshua Kovacs (Chief Executive Officer) and four Directors: Paul Crabtree, Nigell Lee, Robert Huntington, and Steve Nave. No dedicated technology or procurement executive is listed. In a system this small, the CEO and Director group almost certainly make or approve all software purchasing decisions directly. Vendors should prepare to engage Kovacs and the board-level team rather than searching for a separate IT buyer. The operator footprint shows no multi-unit operators mapped in our corpus, meaning all franchisees are likely single-unit owners with no independent purchasing power.
Mandated and current tech stack
Item 11 of the FDD mandates two systems: CMP and QuickBooks by Intuit Inc. CMP serves as the mandated operational platform, while QuickBooks handles accounting. No other POS, payroll, inventory, or HR systems are named as mandated or recommended in the disclosure. This means the tech stack is thin and presents obvious whitespace for vendors selling complementary tools—but any sale must clear the HQ mandate gate. The absence of a mandated POS beyond CMP is notable and worth probing in a discovery call.
Procurement, renewals, and timing
The FDD provides no Item 8 extract, so the procurement model—whether designated supplier, approved supplier, or open—is not disclosed. Vendors should clarify this directly with HQ. On renewals, Item 17 outlines a single 10-year renewal term with strict conditions: good standing, at least 5 Break Coffee Beverage Machines in place, no more than three defaults, written notice 90 to 180 days before term end, a renewal fee of 10% of the then-current initial franchise fee, and execution of a general release. Critically, the franchisor reserves the right to require a new Franchise Agreement with materially different terms. This gives HQ significant leverage to impose new tech mandates at renewal, creating a potential trigger event for software displacement.
How to read the Break Coffee Co. FDD
The full 2026 FDD is embedded below. Focus your review on Item 11 for the complete technology obligations, Item 19 for unit-level financial performance, and Item 17 for renewal and transfer conditions that can force technology change. Item 1 confirms the lean HQ team you will need to sell into. Because the system has only 11 units, the FDD is likely concise, but every line matters when the total contract value per deal is capped by the small unit count. For vendors building a ranked target list of franchise systems, Break Coffee Co. represents a low-volume, high-HQ-control opportunity best pursued alongside larger, faster-growing brands. Talk to FranCloud to see where Break Coffee Co. ranks against other quick-service targets.
Questions vendors ask
Break Coffee Co., answered from the filing
The FDD lists Joshua Kovacs as CEO, alongside Directors Paul Crabtree, Nigell Lee, Robert Huntington, and Steve Nave. With no dedicated CIO disclosed, purchasing decisions likely route through this small executive team.
The 2026 FDD mandates CMP and QuickBooks by Intuit Inc. No other operational or POS systems are named as mandated or recommended in the disclosure.
Break Coffee Co. operates 11 total units, consisting of 9 franchised and 2 company-owned locations. This places it in the very early stages of franchise system growth.
The procurement model is not disclosed in the most recent FDD. Item 8 contains no extract specifying designated or approved supplier requirements for the system.
With a 10-year initial term and a single 10-year renewal option, contract windows are infrequent. Renewal requires 90-180 days' written notice, and the franchisor can materially change agreement terms upon renewal.
The 2026 FDD was filed with state franchise regulators. You can review the full document in the embedded PDF viewer below to analyze Item 11 tech obligations and Item 19 financials directly.
Source
Read the filing itself
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FDD alert
Tell me when this brand refiles.
We’ll email you the moment Break Coffee Co. files a new annual FDD, usually the freshest signal of a vendor change.
Operator footprint
Break Coffee Co.’s FDD on file does not disclose a franchisee directory.
Ownership
The portfolio behind Break Coffee Co.
unknown of westside xpresso delight.
Related Quick service restaurant brands
Primary franchise filings · updated June 2026. Every figure is source-traceable and QA-checked.