ITEM 8 RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES You must expend the Grand Opening Ad Expenditure of $12,000 during the period of time that begins 45 days before the Restaurant opens for business through the 45-day period following the scheduled opening date of your CAFÉ MEXICALI Restaurant for an initial opening advertising and promotion program to be conducted in accordance with our standards. You must submit the grand opening advertising budget to us for approval at least 60 days before expending the Grand Opening Ad Expenditure. The Grand Opening Ad Expenditure will be paid directly to the applicable service providers and not to us. You must submit proof of payment of the Grand Opening Ad Expenditure on our request. You must develop your CAFÉ MEXICALI Restaurant premises, acquire furniture, fixtures, equipment, signage and construct and finish out leasehold improvements for your CAFÉ MEXICALI Restaurant according to the standards and specifications established by us (“Brand Standards”), and as contained in the Franchise Agreement and Brand Standards Manual. We may modify the standards and specifications occasionally. We will promptly notify you of any such modifications to the Brand Standards. We formulate and modify these Brand Standards based on research, industry trends and our general business plan. Additionally, you must maintain your CAFÉ MEXICALI Restaurant premises, leasehold improvements, furniture, fixtures, equipment, signage and trade dress in your Restaurant in good order and repair, and you must promptly replace your leasehold improvements, furniture, fixtures, equipment, signage and trade dress as they become worn, damaged, obsolete, out of style or mechanically impaired and when offered or applicable, enter into preventative maintenance programs as further described in the Brand Standards Manual. The purpose of these requirements is to establish quality control standards for the items used in the development and operation of your CAFÉ MEXICALI Restaurant and to protect, maintain and promote the product and service consistency, reputation and goodwill of CAFÉ MEXICALI Restaurants. Café Mexicali – Franchising, LLC Page 15 of 58 Franchise Disclosure Document | 2026 You must use, offer and sell only Approved Supplies, Products and Services that meet or exceed the Brand Standards we specify, purchase or obtain them from an approved source that we designate (which may be us or our affiliates), and exclusively use, offer and sell only Approved Supplies, Products and Services that we designate. Likewise, you must purchase or obtain Approved Supplies, Products and Services only from approved suppliers we designate or approve from time to time. As of the date of this Disclosure Document, we consider our recipes, menu item names and presentation and Trade Dress to be proprietary, but we do not consider any other Approved Supplies, Products and Services to be proprietary to us. However, we reserve the right to develop and require the use, offer or sale of specific Approved Supplies, Products and Services in the future and may designate them as mandatory and/or proprietary to us. As of the date of this Disclosure Document, our affiliate, Spice Company, is a required supplier. You must purchase designated spices from Spice Company for use in the recipes we provide. Except for purchases from Spice Company, neither we nor our affiliates are a sole approved vendor for any other Approved Supplies, Products and Services that you must use or offer for sale in your CAFÉ MEXICALI Restaurants. We do, however, reserve the right to purchase and resale to you additional items such as branded or proprietary food products, uniforms, menus, gift cards and other promotional materials, merchandise and supplies. For the fiscal year ended December 31, 2025, we received $0 from franchisee purchases or leases, which was 0% of our total revenues of $52,729. Our parent, CMI, derived $8,500.17 from franchisee purchases during its fiscal year ending December 31, 2025. Spice Company did not derive any revenues from franchisee purchases or leases during its fiscal year ending December 31, 2025. We reserve the right to require or permit you to purchase current or future Approved Supplies, Products and Services directly from us or our affiliates, current vendors or other approved vendors in the future. If we or our affiliates are the sole or an approved vendor for any such items, we reserve the right to set the prices for all such Approved Supplies, Products and Services as we deem appropriate from time to time. We may on a case-by-case basis designate or review and approve additional third party branded products or services as Approved Supplies, Products and Services for use, offer or sale in one or more CAFÉ MEXICALI Restaurants, with review and approval conducted under our approval procedures described below. We may purchase third party branded Approved Supplies, Products and Services in bulk and sell them to you at prices we set from time to time (which may include a markup that we set from time to time), or permit you to purchase third party branded Approved Supplies, Products and Services directly from a third party manufacturer or re-seller. We may change or expand the list of Approved Supplies, Products and Services or the list of suppliers for Approved Supplies, Products and Services in the future. Our officers, Mr. Richard Krammer, Mr. Seth Krammer, Mr. Matt Kramer, Mr. Casey Krammer, and Mr. Hoffman, own an interest in Spice Company, but not in any other currently required, approved or designated supplier. As of the date of this Disclosure Document, we have designated one or more third party authorized suppliers for Approved Supplies, Products and Services, including the following: Authorized Distributor Our Rebates or Goods or Services Offered or Vendor Payments (if any) The Heartland Restaurant Point of Sale system None Shamrock Food and supplies distributor None PepsiCo Beverage None Labeling machine and scheduling software Jolt None services ThermoWorks Temperature control system None
From the filings
CAFÉ MEXICALI
Quick service restaurantSoftware purchasing at CAFÉ MEXICALI is controlled at the headquarters level, with Co-Founder and Chief Technology Officer Matthew Krammer overseeing technology decisions. The franchise currently mandates the CAFÉ MEXICALI Operating System and QuickBooks by Intuit Inc. across its 6 total units (2 franchised, 4 company-owned). This creates a small but concentrated addressable market for vendors whose tools complement or replace these mandated systems.
For software vendors selling into US franchise brands.
Live signals
Ordinary royalty terms
6% 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
1 technology requirement is recorded in this filing. A required choice lists alternatives for one obligation. Read each cited clause for its conditions.
Café Mexicali – Franchising, LLC Page 27 of 58 Franchise Disclosure Document | 2026 Area Cooperatives must use our marketing materials. In rare instances we may make exceptions. Any marketing materials not created by us are subject to our approval, and must be submitted to us well in advance of their distribution, publication or broadcast. (Franchise Agreement, Section 10(e)). Gift Card and Customer Loyalty Programs We may occasionally develop and administer, or grant you permission to participate in, gift card, gift certificate or voucher sales programs, customer retention and loyalty programs or other programs designed to promote and enhance the collective success of all CAFÉ MEXICALI Restaurants. You must participate in any such gift card, gift certificate, voucher or customer loyalty program we establish, and honor any such gift cards, gift certificates, vouchers or loyalty awards presented for redemption at the CAFÉ MEXICALI Restaurant. You may not create or issue your own gift cards, gift certificates or vouchers, or create your own loyalty program, unless we expressly permit you to do so in writing. Nor may you sell gift cards, gift certificates or vouchers in bulk or to any retailers for resale. You are responsible for signing any third-party agreements and paying any third-party fees that are required for participation in these programs. Franchisee Advertising Council We do not currently have a franchisee advertising council that advises on advertising policies. We may form a franchisee advertising council in the future, but we have no obligation to do so. If we form a franchisee advertising council, we will have the right to determine how its members are selected and the scope of its authority as well as the right to change or dissolve the franchisee advertising council. Website, Social Media, and the Internet We operate an internet website that provides information about our affiliate’s CAFÉ MEXICALI Restaurants and about CAFÉ MEXICALI Restaurants generally. We have sole discretion and control over the website (including timing, design, contents and continuation) and may (but are not required to) include at the website interior pages containing information about our franchisees’ CAFÉ MEXICALI Restaurants. We may offer and sell Approved Supplies, Products and Services to Customers through the internet website or other websites, including in your Territory and/or Development Area. See Item 12. You will have no right, license, or authority to use any of the Marks on or in connection with our website or any other website, except as we provide in the Franchise Agreement. (Franchise Agreement, Section 11(a)-(b)). Unless we agree in writing, neither you nor your Principals, employees or agents may use the Marks or otherwise mention your CAFÉ MEXICALI Restaurant, the CAFÉ MEXICALI Network or System in connection with any business or personal uses of Social Media, which we define as any and all existing or future forms of electronic communication, whether for business or personal use (including via internet forums, weblogs, social blogs, wikis, podcasts, pictures and videos) through which users create or use online networks or communities (including but not limited through online communities such as Facebook, Twitter, Instagram, SnapChat, LinkedIn, YouTube, Yelp or Wikipedia and other similar content sharing outlets) to share information, ideas, personal messages, and other online content. In all cases, we have sole discretion and control over any profiles using or relating to the Marks, your CAFÉ MEXICALI Restaurant, the CAFÉ MEXICALI Network or System, or that display the Marks that are maintained or posted on Social Media. We may (but need not) establish guidelines pursuant to which you may establish profiles or otherwise establish a presence on Social Media. In such event, you will comply with the standards, protocols and restrictions that we impose, and we can revoke any prior permissions at any time. We can remove references to your Restaurant from the Website with or without notice to you if you are not then in current compliance with the Franchise Agreement. We may use part of the Advertising Fee monies to pay or reimburse the costs associated with the development, maintenance and update of profiles on Social Media. You will indemnify us if we incur losses and expenses from any authorized or unauthorized use of Social Media. (Franchise Agreement, Section 11(c)).
Café Mexicali – Franchising, LLC Page 27 of 58 Franchise Disclosure Document | 2026 Area Cooperatives must use our marketing materials. In rare instances we may make exceptions. Any marketing materials not created by us are subject to our approval, and must be submitted to us well in advance of their distribution, publication or broadcast. (Franchise Agreement, Section 10(e)). Gift Card and Customer Loyalty Programs We may occasionally develop and administer, or grant you permission to participate in, gift card, gift certificate or voucher sales programs, customer retention and loyalty programs or other programs designed to promote and enhance the collective success of all CAFÉ MEXICALI Restaurants. You must participate in any such gift card, gift certificate, voucher or customer loyalty program we establish, and honor any such gift cards, gift certificates, vouchers or loyalty awards presented for redemption at the CAFÉ MEXICALI Restaurant. You may not create or issue your own gift cards, gift certificates or vouchers, or create your own loyalty program, unless we expressly permit you to do so in writing. Nor may you sell gift cards, gift certificates or vouchers in bulk or to any retailers for resale. You are responsible for signing any third-party agreements and paying any third-party fees that are required for participation in these programs. Franchisee Advertising Council We do not currently have a franchisee advertising council that advises on advertising policies. We may form a franchisee advertising council in the future, but we have no obligation to do so. If we form a franchisee advertising council, we will have the right to determine how its members are selected and the scope of its authority as well as the right to change or dissolve the franchisee advertising council. Website, Social Media, and the Internet We operate an internet website that provides information about our affiliate’s CAFÉ MEXICALI Restaurants and about CAFÉ MEXICALI Restaurants generally. We have sole discretion and control over the website (including timing, design, contents and continuation) and may (but are not required to) include at the website interior pages containing information about our franchisees’ CAFÉ MEXICALI Restaurants. We may offer and sell Approved Supplies, Products and Services to Customers through the internet website or other websites, including in your Territory and/or Development Area. See Item 12. You will have no right, license, or authority to use any of the Marks on or in connection with our website or any other website, except as we provide in the Franchise Agreement. (Franchise Agreement, Section 11(a)-(b)). Unless we agree in writing, neither you nor your Principals, employees or agents may use the Marks or otherwise mention your CAFÉ MEXICALI Restaurant, the CAFÉ MEXICALI Network or System in connection with any business or personal uses of Social Media, which we define as any and all existing or future forms of electronic communication, whether for business or personal use (including via internet forums, weblogs, social blogs, wikis, podcasts, pictures and videos) through which users create or use online networks or communities (including but not limited through online communities such as Facebook, Twitter, Instagram, SnapChat, LinkedIn, YouTube, Yelp or Wikipedia and other similar content sharing outlets) to share information, ideas, personal messages, and other online content. In all cases, we have sole discretion and control over any profiles using or relating to the Marks, your CAFÉ MEXICALI Restaurant, the CAFÉ MEXICALI Network or System, or that display the Marks that are maintained or posted on Social Media. We may (but need not) establish guidelines pursuant to which you may establish profiles or otherwise establish a presence on Social Media. In such event, you will comply with the standards, protocols and restrictions that we impose, and we can revoke any prior permissions at any time. We can remove references to your Restaurant from the Website with or without notice to you if you are not then in current compliance with the Franchise Agreement. We may use part of the Advertising Fee monies to pay or reimburse the costs associated with the development, maintenance and update of profiles on Social Media. You will indemnify us if we incur losses and expenses from any authorized or unauthorized use of Social Media. (Franchise Agreement, Section 11(c)).
Café Mexicali – Franchising, LLC Page 27 of 58 Franchise Disclosure Document | 2026 Area Cooperatives must use our marketing materials. In rare instances we may make exceptions. Any marketing materials not created by us are subject to our approval, and must be submitted to us well in advance of their distribution, publication or broadcast. (Franchise Agreement, Section 10(e)). Gift Card and Customer Loyalty Programs We may occasionally develop and administer, or grant you permission to participate in, gift card, gift certificate or voucher sales programs, customer retention and loyalty programs or other programs designed to promote and enhance the collective success of all CAFÉ MEXICALI Restaurants. You must participate in any such gift card, gift certificate, voucher or customer loyalty program we establish, and honor any such gift cards, gift certificates, vouchers or loyalty awards presented for redemption at the CAFÉ MEXICALI Restaurant. You may not create or issue your own gift cards, gift certificates or vouchers, or create your own loyalty program, unless we expressly permit you to do so in writing. Nor may you sell gift cards, gift certificates or vouchers in bulk or to any retailers for resale. You are responsible for signing any third-party agreements and paying any third-party fees that are required for participation in these programs. Franchisee Advertising Council We do not currently have a franchisee advertising council that advises on advertising policies. We may form a franchisee advertising council in the future, but we have no obligation to do so. If we form a franchisee advertising council, we will have the right to determine how its members are selected and the scope of its authority as well as the right to change or dissolve the franchisee advertising council. Website, Social Media, and the Internet We operate an internet website that provides information about our affiliate’s CAFÉ MEXICALI Restaurants and about CAFÉ MEXICALI Restaurants generally. We have sole discretion and control over the website (including timing, design, contents and continuation) and may (but are not required to) include at the website interior pages containing information about our franchisees’ CAFÉ MEXICALI Restaurants. We may offer and sell Approved Supplies, Products and Services to Customers through the internet website or other websites, including in your Territory and/or Development Area. See Item 12. You will have no right, license, or authority to use any of the Marks on or in connection with our website or any other website, except as we provide in the Franchise Agreement. (Franchise Agreement, Section 11(a)-(b)). Unless we agree in writing, neither you nor your Principals, employees or agents may use the Marks or otherwise mention your CAFÉ MEXICALI Restaurant, the CAFÉ MEXICALI Network or System in connection with any business or personal uses of Social Media, which we define as any and all existing or future forms of electronic communication, whether for business or personal use (including via internet forums, weblogs, social blogs, wikis, podcasts, pictures and videos) through which users create or use online networks or communities (including but not limited through online communities such as Facebook, Twitter, Instagram, SnapChat, LinkedIn, YouTube, Yelp or Wikipedia and other similar content sharing outlets) to share information, ideas, personal messages, and other online content. In all cases, we have sole discretion and control over any profiles using or relating to the Marks, your CAFÉ MEXICALI Restaurant, the CAFÉ MEXICALI Network or System, or that display the Marks that are maintained or posted on Social Media. We may (but need not) establish guidelines pursuant to which you may establish profiles or otherwise establish a presence on Social Media. In such event, you will comply with the standards, protocols and restrictions that we impose, and we can revoke any prior permissions at any time. We can remove references to your Restaurant from the Website with or without notice to you if you are not then in current compliance with the Franchise Agreement. We may use part of the Advertising Fee monies to pay or reimburse the costs associated with the development, maintenance and update of profiles on Social Media. You will indemnify us if we incur losses and expenses from any authorized or unauthorized use of Social Media. (Franchise Agreement, Section 11(c)).
Hardware One Administrative Back of House Computer Point of Sale Equipment – Two to Three Stations Labeling Machine Temperature Control System Software Café Mexicali – Franchising, LLC Page 30 of 58 Franchise Disclosure Document | 2026 QuickBooks Accounting Pro Software Package 2011 edition or higher, or an approved equivalent Microsoft Office 2007 edition or higher (including Word, Excel and Outlook) Point of Sale System (as described in Brand Standards Manual) Scheduling and Equipment Temperature Monitoring Services (as described in Brand Standards Manual) We estimate the initial purchase or lease cost of the current required Technology and Information Systems to be between $10,000 to $20,000. We reserve the right to develop and require you to use our CAFÉ MEXICALI Operating System in your Restaurant. When you sign the Franchise Agreement, you will pay to us a Technology Setup Fee of $1,000 to offset our costs related to setting you up with our electronic mail system, website, and computer system infrastructure. We do not anticipate charging you any other initial fee or connection fee, but we reserve the right to require you to pay us a monthly Technology Fee for continued access and use of our CAFÉ MEXICALI Operating System in an amount we determine (generally based on our underlying costs per franchisee and currently $25 per week). We may electronically poll your Restaurant's Technology and Information Systems to obtain Gross Sales data, as well as other financial and operating information, including Customer Information and other information from the CAFÉ MEXICALI Operating System (if applicable), which will be available to us twenty-four hours every day. You must maintain continual data network access to your Restaurant’s Technology and Information Systems for our use. There are no contractual limitations on our right to access any information or data contained on your Technology and Information Systems. We have the right to require you to change or upgrade your Technology and Information Systems from time to time, the cost of which we are unable to estimate, but we do not anticipate that the costs for general maintenance would be more than $500 a year. You must update all Technology and Information Systems as and when we may specify from time to time in the Brand Standards Manual, and generally no later than 30 days before the then-current Franchise Agreement will expire or upon notice that we have established the Intranet. Except as described above, there are no contractual limitations on the frequency and cost of the obligation to require updates to your Technology and Information Systems. You are required to install and maintain a hardware and software firewall device on your Technology and Information Systems network that follows closely to the Payment Card Industry (PCI) DSS merchant requirements as stated on the http://www.pcisecuritystandards.org. The network must be segmented off of other internal business networks. You must use internal or third-party IT network resources, which include security shield, threat defender, and breach protection programs. We may suggest third party PCI compliance vendors to you, but you are responsible for your own PCI compliance at your CAFÉ MEXICALI Restaurant.
Café Mexicali – Franchising, LLC Page 27 of 58 Franchise Disclosure Document | 2026 Area Cooperatives must use our marketing materials. In rare instances we may make exceptions. Any marketing materials not created by us are subject to our approval, and must be submitted to us well in advance of their distribution, publication or broadcast. (Franchise Agreement, Section 10(e)). Gift Card and Customer Loyalty Programs We may occasionally develop and administer, or grant you permission to participate in, gift card, gift certificate or voucher sales programs, customer retention and loyalty programs or other programs designed to promote and enhance the collective success of all CAFÉ MEXICALI Restaurants. You must participate in any such gift card, gift certificate, voucher or customer loyalty program we establish, and honor any such gift cards, gift certificates, vouchers or loyalty awards presented for redemption at the CAFÉ MEXICALI Restaurant. You may not create or issue your own gift cards, gift certificates or vouchers, or create your own loyalty program, unless we expressly permit you to do so in writing. Nor may you sell gift cards, gift certificates or vouchers in bulk or to any retailers for resale. You are responsible for signing any third-party agreements and paying any third-party fees that are required for participation in these programs. Franchisee Advertising Council We do not currently have a franchisee advertising council that advises on advertising policies. We may form a franchisee advertising council in the future, but we have no obligation to do so. If we form a franchisee advertising council, we will have the right to determine how its members are selected and the scope of its authority as well as the right to change or dissolve the franchisee advertising council. Website, Social Media, and the Internet We operate an internet website that provides information about our affiliate’s CAFÉ MEXICALI Restaurants and about CAFÉ MEXICALI Restaurants generally. We have sole discretion and control over the website (including timing, design, contents and continuation) and may (but are not required to) include at the website interior pages containing information about our franchisees’ CAFÉ MEXICALI Restaurants. We may offer and sell Approved Supplies, Products and Services to Customers through the internet website or other websites, including in your Territory and/or Development Area. See Item 12. You will have no right, license, or authority to use any of the Marks on or in connection with our website or any other website, except as we provide in the Franchise Agreement. (Franchise Agreement, Section 11(a)-(b)). Unless we agree in writing, neither you nor your Principals, employees or agents may use the Marks or otherwise mention your CAFÉ MEXICALI Restaurant, the CAFÉ MEXICALI Network or System in connection with any business or personal uses of Social Media, which we define as any and all existing or future forms of electronic communication, whether for business or personal use (including via internet forums, weblogs, social blogs, wikis, podcasts, pictures and videos) through which users create or use online networks or communities (including but not limited through online communities such as Facebook, Twitter, Instagram, SnapChat, LinkedIn, YouTube, Yelp or Wikipedia and other similar content sharing outlets) to share information, ideas, personal messages, and other online content. In all cases, we have sole discretion and control over any profiles using or relating to the Marks, your CAFÉ MEXICALI Restaurant, the CAFÉ MEXICALI Network or System, or that display the Marks that are maintained or posted on Social Media. We may (but need not) establish guidelines pursuant to which you may establish profiles or otherwise establish a presence on Social Media. In such event, you will comply with the standards, protocols and restrictions that we impose, and we can revoke any prior permissions at any time. We can remove references to your Restaurant from the Website with or without notice to you if you are not then in current compliance with the Franchise Agreement. We may use part of the Advertising Fee monies to pay or reimburse the costs associated with the development, maintenance and update of profiles on Social Media. You will indemnify us if we incur losses and expenses from any authorized or unauthorized use of Social Media. (Franchise Agreement, Section 11(c)).
Café Mexicali – Franchising, LLC Page 27 of 58 Franchise Disclosure Document | 2026 Area Cooperatives must use our marketing materials. In rare instances we may make exceptions. Any marketing materials not created by us are subject to our approval, and must be submitted to us well in advance of their distribution, publication or broadcast. (Franchise Agreement, Section 10(e)). Gift Card and Customer Loyalty Programs We may occasionally develop and administer, or grant you permission to participate in, gift card, gift certificate or voucher sales programs, customer retention and loyalty programs or other programs designed to promote and enhance the collective success of all CAFÉ MEXICALI Restaurants. You must participate in any such gift card, gift certificate, voucher or customer loyalty program we establish, and honor any such gift cards, gift certificates, vouchers or loyalty awards presented for redemption at the CAFÉ MEXICALI Restaurant. You may not create or issue your own gift cards, gift certificates or vouchers, or create your own loyalty program, unless we expressly permit you to do so in writing. Nor may you sell gift cards, gift certificates or vouchers in bulk or to any retailers for resale. You are responsible for signing any third-party agreements and paying any third-party fees that are required for participation in these programs. Franchisee Advertising Council We do not currently have a franchisee advertising council that advises on advertising policies. We may form a franchisee advertising council in the future, but we have no obligation to do so. If we form a franchisee advertising council, we will have the right to determine how its members are selected and the scope of its authority as well as the right to change or dissolve the franchisee advertising council. Website, Social Media, and the Internet We operate an internet website that provides information about our affiliate’s CAFÉ MEXICALI Restaurants and about CAFÉ MEXICALI Restaurants generally. We have sole discretion and control over the website (including timing, design, contents and continuation) and may (but are not required to) include at the website interior pages containing information about our franchisees’ CAFÉ MEXICALI Restaurants. We may offer and sell Approved Supplies, Products and Services to Customers through the internet website or other websites, including in your Territory and/or Development Area. See Item 12. You will have no right, license, or authority to use any of the Marks on or in connection with our website or any other website, except as we provide in the Franchise Agreement. (Franchise Agreement, Section 11(a)-(b)). Unless we agree in writing, neither you nor your Principals, employees or agents may use the Marks or otherwise mention your CAFÉ MEXICALI Restaurant, the CAFÉ MEXICALI Network or System in connection with any business or personal uses of Social Media, which we define as any and all existing or future forms of electronic communication, whether for business or personal use (including via internet forums, weblogs, social blogs, wikis, podcasts, pictures and videos) through which users create or use online networks or communities (including but not limited through online communities such as Facebook, Twitter, Instagram, SnapChat, LinkedIn, YouTube, Yelp or Wikipedia and other similar content sharing outlets) to share information, ideas, personal messages, and other online content. In all cases, we have sole discretion and control over any profiles using or relating to the Marks, your CAFÉ MEXICALI Restaurant, the CAFÉ MEXICALI Network or System, or that display the Marks that are maintained or posted on Social Media. We may (but need not) establish guidelines pursuant to which you may establish profiles or otherwise establish a presence on Social Media. In such event, you will comply with the standards, protocols and restrictions that we impose, and we can revoke any prior permissions at any time. We can remove references to your Restaurant from the Website with or without notice to you if you are not then in current compliance with the Franchise Agreement. We may use part of the Advertising Fee monies to pay or reimburse the costs associated with the development, maintenance and update of profiles on Social Media. You will indemnify us if we incur losses and expenses from any authorized or unauthorized use of Social Media. (Franchise Agreement, Section 11(c)).
Café Mexicali – Franchising, LLC Page 27 of 58 Franchise Disclosure Document | 2026 Area Cooperatives must use our marketing materials. In rare instances we may make exceptions. Any marketing materials not created by us are subject to our approval, and must be submitted to us well in advance of their distribution, publication or broadcast. (Franchise Agreement, Section 10(e)). Gift Card and Customer Loyalty Programs We may occasionally develop and administer, or grant you permission to participate in, gift card, gift certificate or voucher sales programs, customer retention and loyalty programs or other programs designed to promote and enhance the collective success of all CAFÉ MEXICALI Restaurants. You must participate in any such gift card, gift certificate, voucher or customer loyalty program we establish, and honor any such gift cards, gift certificates, vouchers or loyalty awards presented for redemption at the CAFÉ MEXICALI Restaurant. You may not create or issue your own gift cards, gift certificates or vouchers, or create your own loyalty program, unless we expressly permit you to do so in writing. Nor may you sell gift cards, gift certificates or vouchers in bulk or to any retailers for resale. You are responsible for signing any third-party agreements and paying any third-party fees that are required for participation in these programs. Franchisee Advertising Council We do not currently have a franchisee advertising council that advises on advertising policies. We may form a franchisee advertising council in the future, but we have no obligation to do so. If we form a franchisee advertising council, we will have the right to determine how its members are selected and the scope of its authority as well as the right to change or dissolve the franchisee advertising council. Website, Social Media, and the Internet We operate an internet website that provides information about our affiliate’s CAFÉ MEXICALI Restaurants and about CAFÉ MEXICALI Restaurants generally. We have sole discretion and control over the website (including timing, design, contents and continuation) and may (but are not required to) include at the website interior pages containing information about our franchisees’ CAFÉ MEXICALI Restaurants. We may offer and sell Approved Supplies, Products and Services to Customers through the internet website or other websites, including in your Territory and/or Development Area. See Item 12. You will have no right, license, or authority to use any of the Marks on or in connection with our website or any other website, except as we provide in the Franchise Agreement. (Franchise Agreement, Section 11(a)-(b)). Unless we agree in writing, neither you nor your Principals, employees or agents may use the Marks or otherwise mention your CAFÉ MEXICALI Restaurant, the CAFÉ MEXICALI Network or System in connection with any business or personal uses of Social Media, which we define as any and all existing or future forms of electronic communication, whether for business or personal use (including via internet forums, weblogs, social blogs, wikis, podcasts, pictures and videos) through which users create or use online networks or communities (including but not limited through online communities such as Facebook, Twitter, Instagram, SnapChat, LinkedIn, YouTube, Yelp or Wikipedia and other similar content sharing outlets) to share information, ideas, personal messages, and other online content. In all cases, we have sole discretion and control over any profiles using or relating to the Marks, your CAFÉ MEXICALI Restaurant, the CAFÉ MEXICALI Network or System, or that display the Marks that are maintained or posted on Social Media. We may (but need not) establish guidelines pursuant to which you may establish profiles or otherwise establish a presence on Social Media. In such event, you will comply with the standards, protocols and restrictions that we impose, and we can revoke any prior permissions at any time. We can remove references to your Restaurant from the Website with or without notice to you if you are not then in current compliance with the Franchise Agreement. We may use part of the Advertising Fee monies to pay or reimburse the costs associated with the development, maintenance and update of profiles on Social Media. You will indemnify us if we incur losses and expenses from any authorized or unauthorized use of Social Media. (Franchise Agreement, Section 11(c)).
Café Mexicali – Franchising, LLC Page 27 of 58 Franchise Disclosure Document | 2026 Area Cooperatives must use our marketing materials. In rare instances we may make exceptions. Any marketing materials not created by us are subject to our approval, and must be submitted to us well in advance of their distribution, publication or broadcast. (Franchise Agreement, Section 10(e)). Gift Card and Customer Loyalty Programs We may occasionally develop and administer, or grant you permission to participate in, gift card, gift certificate or voucher sales programs, customer retention and loyalty programs or other programs designed to promote and enhance the collective success of all CAFÉ MEXICALI Restaurants. You must participate in any such gift card, gift certificate, voucher or customer loyalty program we establish, and honor any such gift cards, gift certificates, vouchers or loyalty awards presented for redemption at the CAFÉ MEXICALI Restaurant. You may not create or issue your own gift cards, gift certificates or vouchers, or create your own loyalty program, unless we expressly permit you to do so in writing. Nor may you sell gift cards, gift certificates or vouchers in bulk or to any retailers for resale. You are responsible for signing any third-party agreements and paying any third-party fees that are required for participation in these programs. Franchisee Advertising Council We do not currently have a franchisee advertising council that advises on advertising policies. We may form a franchisee advertising council in the future, but we have no obligation to do so. If we form a franchisee advertising council, we will have the right to determine how its members are selected and the scope of its authority as well as the right to change or dissolve the franchisee advertising council. Website, Social Media, and the Internet We operate an internet website that provides information about our affiliate’s CAFÉ MEXICALI Restaurants and about CAFÉ MEXICALI Restaurants generally. We have sole discretion and control over the website (including timing, design, contents and continuation) and may (but are not required to) include at the website interior pages containing information about our franchisees’ CAFÉ MEXICALI Restaurants. We may offer and sell Approved Supplies, Products and Services to Customers through the internet website or other websites, including in your Territory and/or Development Area. See Item 12. You will have no right, license, or authority to use any of the Marks on or in connection with our website or any other website, except as we provide in the Franchise Agreement. (Franchise Agreement, Section 11(a)-(b)). Unless we agree in writing, neither you nor your Principals, employees or agents may use the Marks or otherwise mention your CAFÉ MEXICALI Restaurant, the CAFÉ MEXICALI Network or System in connection with any business or personal uses of Social Media, which we define as any and all existing or future forms of electronic communication, whether for business or personal use (including via internet forums, weblogs, social blogs, wikis, podcasts, pictures and videos) through which users create or use online networks or communities (including but not limited through online communities such as Facebook, Twitter, Instagram, SnapChat, LinkedIn, YouTube, Yelp or Wikipedia and other similar content sharing outlets) to share information, ideas, personal messages, and other online content. In all cases, we have sole discretion and control over any profiles using or relating to the Marks, your CAFÉ MEXICALI Restaurant, the CAFÉ MEXICALI Network or System, or that display the Marks that are maintained or posted on Social Media. We may (but need not) establish guidelines pursuant to which you may establish profiles or otherwise establish a presence on Social Media. In such event, you will comply with the standards, protocols and restrictions that we impose, and we can revoke any prior permissions at any time. We can remove references to your Restaurant from the Website with or without notice to you if you are not then in current compliance with the Franchise Agreement. We may use part of the Advertising Fee monies to pay or reimburse the costs associated with the development, maintenance and update of profiles on Social Media. You will indemnify us if we incur losses and expenses from any authorized or unauthorized use of Social Media. (Franchise Agreement, Section 11(c)).
Franchisor behaviours
What the franchisor requires
30 requirements the franchisor states in this filing, each in its own words; 2 explicit no's; 2 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?
YesItem 11
You must also obtain and utilize services of a credit card processor that we have approved.
Does the franchisor have direct or independent electronic access to the franchisee's financial, sales or customer records?
YesItem 11
We may electronically poll your Restaurant's Technology and Information Systems to obtain Gross Sales data, as well as other financial and operating information, including Customer Information and other information from the CAFÉ MEXICALI Operating System (if applicable), which will be available to us twenty-four…
Must the franchisee submit periodic financial statements (monthly, quarterly or annual) to the franchisor?
YesFranchise agreement
In addition to the annual reports required above, no later than the last business day of the month following the close of each fiscal quarter (other than the fourth fiscal quarter), Franchisee will deliver to Franchisor an unaudited balance sheet as of the end of such fiscal quarter and an income statement for such…
How the franchisor buys
Is the franchisor or an affiliate itself a supplier of required products, services or systems?
YesItem 8
As of the date of this Disclosure Document, our affiliate, Spice Company, is a required supplier.
Does the franchisor reserve the right to change designated suppliers or systems at any time?
YesItem 8
We may change or expand the list of Approved Supplies, Products and Services or the list of suppliers for Approved Supplies, Products and Services in the future.
How much revenue did the franchisor and its affiliates earn from franchisee purchases in the last fiscal year?
0Item 8
For the fiscal year ended December 31, 2025, we received $0 from franchisee purchases or leases, which was 0% of our total revenues of $52,729.
Does the franchisor or an affiliate receive rebates, commissions or other revenue from designated or approved suppliers?
YesItem 8
We reserve the right to contract with manufacturers, suppliers and distributors who provide us volume discounts, rebates and other cash payments based on volume purchases of Approved Supplies, Products and Services used by our franchised, company-owned or affiliated CAFÉ MEXICALI Restaurants.
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?
50Item 8
approximately 50% to 60% of your ongoing operating expenses.
Does the franchisor charge a fee to evaluate a proposed supplier?
YesItem 8
If we elect to test the samples or inspect the proposed supplier’s facilities, you will be charged a fee not to exceed the actual cost of such inspection or testing.
Can a franchisee propose a new supplier for the franchisor's approval?
YesItem 8
If you desire to purchase any products or services from a supplier that has not already been approved, you must obtain our prior written approval, which may take up to 90 days from our receipt of all requested information, including information regarding the supplier’s fiscal strength, demonstrated customer service…
Communications
Does the franchisor own or control the business telephone numbers, or take them over when the agreement ends?
YesFranchise agreement
Upon the Franchise’s termination or expiration, Franchisor may immediately instruct the telephone company and all other directory publishers (both web-based and print) to transfer use and control of Franchisee’s Restaurant’s telephone number(s) and all director listings to Franchisor or its designee.
Data and IT
Must the franchisee comply with PCI, data-security or cybersecurity standards set by the franchisor?
YesFranchise agreement
Franchisee must implement and maintain an approved Payment Card Industry (PCI) compliance program for Franchisee’s Restaurant.
Franchise management
Does the franchisor conduct periodic inspections, audits or evaluations of the franchised business?
YesFranchise agreement
Franchisee will permit Franchisor representatives to conduct unannounced QSC Reviews of Franchisee’s Restaurant at any time during normal business hours.
Can the franchisor change the operations manual and brand standards unilaterally?
YesFranchise agreement
Franchisor may instruct Franchisee to adapt Franchisee’s Restaurant to the Brand Standards through a supplement to the Brand Standards Manual.
Must the franchisor approve the franchisee's site or location before opening?
YesItem 11
If you have not already secured a site before signing the Franchise Agreement, then within 180 days after signing the Franchise Agreement, you must locate and obtain our approval for a site within an agreed target area (described in the Franchise Agreement) for the establishment and operation of your Restaurant.
Marketing
Is the franchisee prohibited from operating its own website or social media accounts, or required to use pages the franchisor provides?
YesItem 11
Unless we agree in writing, neither you nor your Principals, employees or agents may use the Marks or otherwise mention your CAFÉ MEXICALI Restaurant, the CAFÉ MEXICALI Network or System in connection with any business or personal uses of Social Media
Is a minimum grand opening advertising spend required?
YesItem 11
You must make the Grand Opening Ad Expenditure (currently at least $12,000) during the 45 days before the scheduled opening date and for the 45 days following the commencement of operations of your CAFÉ MEXICALI Restaurant for an initial opening advertising and promotion program to be conducted in accordance with our…
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
Throughout the term of the Franchise Agreement, you must spend the Local Ad Expenditure on approved local advertising.
Must the franchisee participate in a customer loyalty or rewards program?
YesItem 11
You must participate in any such gift card, gift certificate, voucher or customer loyalty program we establish, and honor any such gift cards, gift certificates, vouchers or loyalty awards presented for redemption at the CAFÉ MEXICALI Restaurant.
Must the franchisee participate in a regional advertising cooperative when one exists?
YesFranchise agreement
Franchisee agrees (i) to join, participate in, and actively support any Area Cooperative established in Franchisee’s Restaurant’s DMA, and (ii) to make contributions to each Area Cooperative on the payment schedule adopted by the Area Cooperative’s members and at the contribution rate approved by Franchisor;
Operations
Must the franchisee buy products from a designated distributor?
YesItem 8
You must purchase designated spices from Spice Company for use in the recipes we provide.
Must equipment be purchased from designated or approved suppliers?
YesItem 8
Likewise, you must purchase or obtain Approved Supplies, Products and Services only from approved suppliers we designate or approve from time to time.
Payments
Must the franchisee use a payment processor or merchant-services provider designated or approved by the franchisor?
YesItem 11
You must also obtain and utilize services of a credit card processor that we have approved.
Are royalties and other fees collected by automatic bank debit (ACH or electronic funds transfer) from the franchisee's account?
YesFranchise agreement
All Continuing Fees due under this Agreement will be payable each Accounting Period by automatic debit of Franchisee’s account on the 1st day following each Accounting Period with respect to Franchisee’s Gross Sales for the immediately preceding Accounting Period.
Must the franchisee participate in a gift card program?
YesItem 11
You must participate in any such gift card, gift certificate, voucher or customer loyalty program we establish, and honor any such gift cards, gift certificates, vouchers or loyalty awards presented for redemption at the CAFÉ MEXICALI Restaurant.
People
Does the franchisor require minimum staffing levels or specific roles?
YesFranchise agreement
Franchisee must also recruit and hire an Operator with the minimum requisite eligibility standards as set in the Brand Standards Manual.
Point of sale
Must the franchisee use a specific point-of-sale system designated or approved by the franchisor?
YesItem 11
Point of Sale System (as described in Brand Standards Manual)
Does the franchisor have independent access to the data in the franchisee's POS or computer system?
YesItem 11
We will have continuous, uninterrupted access to your Restaurant’s Technology and Information Systems.
Training
Can the franchisor charge the franchisee for additional, refresher or remedial training?
YesFranchise agreement
Franchisor reserves the right to charge an additional fee to Franchisee for any additional required or optional training before or after the Restaurant opens for business and training for other or subsequent personnel in addition to the Training Team.
Is attendance at an annual convention or conference mandatory for the franchisee?
YesFranchise agreement
Attendance to such conventions, seminars and other franchisee-oriented functions will be mandatory, unless otherwise agreed by Franchisor in writing.
The filing answers no to 2 questions
- Is there a franchisee advisory council, association or committee?Item 11
- Must the franchisee participate in a customer-satisfaction or net-promoter survey program?
The vendor opportunity at CAFÉ MEXICALI
CAFÉ MEXICALI is a quick-service restaurant concept headquartered in Colorado with a total footprint of 6 units—4 company-owned and 2 franchised. For software vendors, the immediate addressable market is the 2 franchised locations, as company-owned units typically follow HQ purchasing decisions directly. The franchise is small, with no multi-unit operators on file and a unit-band split showing both franchised units fall in the 1-unit operator category. This means any sale into the franchisee base would involve two independent operators, each running a single location. Average unit volume is not disclosed in the most recent FDD.
Who controls software purchasing
Technology purchasing authority sits at the headquarters level. The FDD lists five named executives in Item 1, and the most relevant for a software pitch is Matthew Krammer, who holds the title of Chief Technology Officer and is a Co-Founder. Richard A. Krammer serves as Co-Founder and Chief Executive Officer, and R. Seth Krammer is Chief Operating Officer. David Hoffman, Co-Founder and Chief Development Officer, and Casey John Krammer, Chief Coordination Officer, round out the leadership team. With a dedicated CTO, the organization signals that technology decisions are intentional and likely evaluated against the existing mandated stack. Vendors should expect a centralized evaluation process rather than franchisee-level autonomy.
Mandated and current tech stack
The FDD mandates four technology components. First, the CAFÉ MEXICALI Operating System is required—this is a proprietary or branded system that likely covers core operational workflows. Second, QuickBooks by Intuit Inc. is mandated, along with the QuickBooks Accounting Pro Software Package, indicating a standardized approach to financial management. Third, Scheduling and Equipment Temperature Monitoring Services are mandated, though the specific vendor for these services is not named in the available extract. Any vendor proposing a replacement or integration must address how their solution coexists with or improves upon these mandated systems. The presence of a proprietary operating system suggests deep integration with operations, making displacement a heavier lift than augmenting reporting or adding adjacent functionality.
Procurement, renewals, and timing
The FDD does not include an Item 8 extract, so the procurement model—whether designated supplier, approved supplier list, or open market—is not disclosed. Vendors should clarify this directly during discovery. On renewals, Item 17 provides a clear window: franchise agreements run 10 years, and renewal is conditional on not being in default, giving notice, paying a renewal fee, upgrading the restaurant to current standards, signing the then-current form of franchise agreement (which may contain materially different terms), signing a general release, and attending training if required. This renewal trigger is a natural point when franchisees may be required to adopt new or updated technology. With only 2 franchised units and no disclosed year-over-year unit growth, the pipeline of new openings is not a reliable sales channel; renewal-driven upgrades are the more realistic entry point.
How to read the CAFÉ MEXICALI FDD
The 2026 Franchise Disclosure Document is the authoritative source for understanding CAFÉ MEXICALI's technology mandates, executive structure, and contractual obligations. Item 1 identifies the leadership team and corporate history. Item 11 details the mandated systems and equipment, including the CAFÉ MEXICALI Operating System and QuickBooks. Item 17 governs renewal and termination, outlining the conditions under which franchisees must upgrade their operations. The embedded PDF viewer below contains the full document. For vendors building a ranked target list of franchise systems, understanding these FDD details is essential to prioritizing outreach. FranCloud helps software vendors identify which franchise systems match their ideal customer profile using structured FDD data like the facts on this page.
Ordinary royalty terms
Complete royalty terms are not confirmed.
Questions vendors ask
CAFÉ MEXICALI, 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
| CO | 1 |
|---|---|
| AZ | 1 |
Related Quick service restaurant brands
Primary franchise filings · updated June 2026. Read the original filing for definitions, conditions, and qualifications.