From the filings

+41.67% units YoYHQ-led decisions

Cafe 86

Quick service restaurant

Software purchasing at Cafe 86 is controlled at the franchisor level, with mandates covering payroll, accounting, and workforce management. The system currently operates 17 total units—10 franchised and 7 company-owned—giving vendors a small but growing addressable footprint. The 2025 FDD names John Yau as the agent for service of process, signaling a lean HQ where the owner likely drives or directly oversees technology decisions.

For software vendors selling into US franchise brands.

Live signals

Total units
17
10 franchised
Unit growth YoY
+41.67%
vs prior filing
AUV
—
Item 19, 2025
Royalty
6%
of gross sales
Ad fund
1%
national + local
Initial fee
$45K
per unit
Investment range
$230K–$468K
all-in, Item 7
Procurement
Franchisor controlled
from the filing
Non-compete
2 years
from the filing
Item 19
No 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.

7%of gross sales (FY2025)

Ongoing fees: 7% of gross sales (FY2025)Royalty 6%, Ad fund 1%. Total 7% of gross sales. Drawn against a 15% reference scale.

15% reference

Royalty 6%Ad fund 1%

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.

QuickBooks Online
Mandatory
AccountingItem 11

,200 to $11,400. This includes the POS System at $250 per month, ADP at $120 per month, When I Work which is $2-$3 per user per month for scheduling and $395 as a one time fee and QuickBooks Online wh

ADP
PayrollItem 11

that the annual cost of any optional or required maintenance, updating, upgrading, or support contracts will be $10,200 to $11,400. This includes the POS System at $250 per month, ADP at $120 per mont

QuickBooks
AccountingItem 11

point-of-sale system and computer system as follows: The system will include our currently required POS/CRM system, credit card processing system, and accounting platform, such as QuickBooks. These sy

When I Work
SchedulingItem 11

any optional or required maintenance, updating, upgrading, or support contracts will be $10,200 to $11,400. This includes the POS System at $250 per month, ADP at $120 per month, When I Work which is

Franchisor behaviours

What the franchisor requires

27 requirements the franchisor states in this filing, each in its own words; 7 explicit no's.

Accounting

Must the franchisee use an accounting or bookkeeping system designated or approved by the franchisor?

Yes

Item 11

We require you to buy (or lease) and use a point-of-sale system and computer system as follows: The system will include our currently required POS/CRM system, credit card processing system, and accounting platform, such as QuickBooks.

Does the franchisor have direct or independent electronic access to the franchisee's financial, sales or customer records?

Yes

Franchise agreement

Franchisee acknowledges that Café 86 Franchise has the right to remotely access Franchisee’s point-of-sale system to calculate Gross Sales.

Must the franchisee submit periodic financial statements (monthly, quarterly or annual) to the franchisor?

Yes

Franchise agreement

Franchisee shall provide such periodic financial reports as Café 86 Franchise may require in the Manual or otherwise in writing, including: (i) a monthly profit and loss statement and balance sheet for the Business within 30 days after the end of each calendar month;

How the franchisor buys

Is the franchisor or an affiliate itself a supplier of required products, services or systems?

Yes

Item 8

Our affiliate, Café 86 Corporation is currently a supplier of the food product, paper goods, supplies and inventory you will purchase as part of operating the franchised business model.

Does the franchisor reserve the right to change designated suppliers or systems at any time?

Yes

Franchise agreement

Café 86 Franchise may change any such requirement or change the status of any vendor.

How much revenue did the franchisor and its affiliates earn from franchisee purchases in the last fiscal year?

1807345.13

Item 8

Our revenue from all required purchases and leases of products and services by franchisees in 2024 was $1,807,345.13

Does the franchisor or an affiliate receive rebates, commissions or other revenue from designated or approved suppliers?

Yes

Franchise agreement

Café 86 Franchise may receive rebates, payments or other consideration from vendors in connection with purchases by franchisees.

Item 8 gives this proportion in one of two shapes: separate percentages for establishing the business and for operating it, or one figure covering "establishing and operating" together. Where they are separate, answer with the operating percentage; where the passage gives only the combined figure, answer with that. What percentage of the franchisee's purchases must come from designated or approved suppliers?

50

Item 8

We estimate that the required purchases and leases of goods and services to operate your business are 50% to 80% of your total purchases and leases of goods and services to operate your business.

Can a franchisee propose a new supplier for the franchisor's approval?

Yes

Item 8

We permit you to contract with alternative suppliers who meet our criteria only if you request our approval in writing, and we grant approval.

Communications

Does the franchisor own or control the business telephone numbers, or take them over when the agreement ends?

Yes

Franchise agreement

notify the telephone, internet, email, electronic network, directory, and listing entities of the termination or expiration of Franchisee’s right to use any numbers, addresses, domain names, locators, directories and listings associated with any of the Marks, and authorize their transfer to Café 86 Franchise or any…

Data and IT

Must the franchisee comply with PCI, data-security or cybersecurity standards set by the franchisor?

Yes

Franchise agreement

Franchisee must at all times comply with payment card industry data security standards (PCI-DSS).

Franchise management

Must the franchisee participate in a customer-satisfaction or net-promoter survey program?

Yes

Franchise agreement

Franchisee shall participate at its own expense in programs required from time to time by Café 86 Franchise for obtaining customer evaluations, reviewing Franchisee’s compliance with the System, and/or managing customer complaints, which may include (but are not limited to) a customer feedback system, customer survey…

Does the franchisor conduct periodic inspections, audits or evaluations of the franchised business?

Yes

Franchise agreement

Café 86 Franchise may enter the premises of the Business from time to time during normal business hours and conduct an inspection.

Can the franchisor change the operations manual and brand standards unilaterally?

Yes

Franchise agreement

Café 86 Franchise may supplement, revise, or modify the Manual, and Café 86 Franchise may change, add or delete System Standards at any time in its discretion.

Must the franchisor approve the franchisee's site or location before opening?

Yes

Item 11

Your site is subject to our approval.

Marketing

Must the franchisee participate in a customer loyalty or rewards program?

Yes

Franchise agreement

Franchisee shall sell or otherwise issue gift cards, certificates, or other pre-paid systems, and participate in any customer loyalty programs, membership/subscription programs, or customer incentive programs, designated by Café 86 Franchise, in the manner specified by Café 86 Franchise in the Manual or otherwise in…

Operations

Must the franchisee buy products from a designated distributor?

Yes

Item 8

You must purchase your food product, packaging, cups and related materials from our Affiliate, Café 86 Corporation.

Must equipment be purchased from designated or approved suppliers?

Yes

Item 8

You must purchase (or lease) the point-of-sale software and hardware, and related software and hardware, that we specify.

Payments

Must the franchisee use a payment processor or merchant-services provider designated or approved by the franchisor?

Yes

Franchise agreement

Franchisee shall accept payment from customers in any form or manner designated by Café 86 Franchise (which may include, for example, cash, specific credit and/or debit cards, gift cards, electronic fund transfer systems, and mobile payment systems).

Are royalties and other fees collected by automatic bank debit (ACH or electronic funds transfer) from the franchisee's account?

Yes

Item 6

We currently require you to pay royalty fees and other amounts due to us by pre- authorized bank draft.

Must the franchisee participate in a gift card program?

Yes

Franchise agreement

At its own expense, Franchisee shall sell or otherwise issue gift cards, certificates, or other pre-paid systems, and participate in any customer loyalty programs, membership/subscription programs, or customer incentive programs, designated by Café 86 Franchise, in the manner specified by Café 86 Franchise in the…

People

Must employees wear uniforms specified by the franchisor?

Yes

Franchise agreement

Franchisee shall cause its personnel to comply with any dress attire, uniform, personal appearance and hygiene standards set forth in the Manual.

Point of sale

Must the franchisee use a specific point-of-sale system designated or approved by the franchisor?

Yes

Item 8

You must purchase (or lease) the point-of-sale software and hardware, and related software and hardware, that we specify.

Does the franchisor have independent access to the data in the franchisee's POS or computer system?

Yes

Item 11

You must give us independent access to the information that will be generated or stored in these systems.

Sales and CRM

Must the franchisee use a CRM system designated or approved by the franchisor?

Yes

Item 11

The system will include our currently required POS/CRM system, credit card processing system, and accounting platform, such as QuickBooks.

Training

Can the franchisor charge the franchisee for additional, refresher or remedial training?

Yes

Item 11

If you need to send a new general manager to our training program, we will charge a fee, which is currently $350 per day.

Is attendance at an annual convention or conference mandatory for the franchisee?

Yes

Franchise agreement

The Principal Executive shall use reasonable efforts to attend all in-person meetings and remote meetings (such as telephone conference calls) that Café 86 Franchise requires, including any national or regional brand conventions.

The filing answers no to 7 questions
  • Is there a franchisee advisory council, association or committee?Item 11
  • Does the franchisor charge a fee to evaluate a proposed supplier?Item 8
  • Is the franchisee prohibited from operating its own website or social media accounts, or required to use pages the franchisor provides?Franchise agreement
  • Is a minimum grand opening advertising spend required?Item 11
  • Is the franchisee required to spend a minimum amount on local advertising or marketing, as a percentage of sales or a fixed amount?Item 11
  • Must the franchisee participate in a regional advertising cooperative when one exists?Item 11
  • Does the franchisor require minimum staffing levels or specific roles?Item 11

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.

Sales LeaderSingle 1 19

The franchisee/operator personally, or a small franchisor still owner-run. Wears every hat.

OwnerCEOPresidentPrincipal
  1. 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%.
  2. 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.
  3. 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 Cafe 86

Cafe 86 is a quick-service restaurant brand headquartered in Pennsylvania with 17 total units—10 franchised and 7 company-owned—according to its 2025 Franchise Disclosure Document. The system grew unit count by 41.67% year-over-year, signaling active expansion that creates recurring software onboarding events. For vendors, the addressable market is small but concentrated: a single decision-making hub controls technology standards across all locations. Average unit volume is not disclosed in the most recent FDD, and the royalty rate sits at 6.0% of gross sales. The initial franchise term runs 10 years, with renewal terms also set at 10 years under the then-current franchise agreement.

Who controls software purchasing

Software purchasing authority at Cafe 86 rests at the franchisor level. The 2025 FDD lists John Yau as the sole Agent for Service of Process, and no additional executives appear in Item 1. This lean structure suggests Mr. Yau is the primary—and likely only—technology buyer. Vendors selling into Cafe 86 should prepare to engage directly with ownership rather than navigating a layered IT or procurement department. There is no parent company on file; the brand appears independently owned, which typically means faster decision cycles but also a higher bar for demonstrating immediate ROI.

Mandated and current tech stack

Cafe 86 mandates four specific technology systems across its network. ADP, Inc. provides the payroll platform, while Intuit Inc. supplies both QuickBooks and QuickBooks Online for accounting. When I Work is the mandated workforce management and scheduling tool. No point-of-sale system is named in the FDD, leaving that category open for vendor inquiry. The presence of mandated cloud-based accounting (QuickBooks Online) alongside a desktop variant suggests the brand may be in transition or accommodating franchisee preference within a defined vendor set. Any software pitch should acknowledge these incumbents and position around integration or adjacent capabilities rather than direct displacement without a compelling event.

Procurement, renewals, and timing

The 2025 FDD does not include an Item 8 extract detailing procurement or supply-chain rules. Without that disclosure, vendors cannot confirm whether Cafe 86 uses a designated-supplier model, an approved-supplier list, or an open procurement framework. In practice, this means software sellers should assume franchisor approval is required for any system touching operations, finance, or employee management. On renewal timing, the FDD is explicit: franchisees must sign the then-current franchise agreement to renew, which may contain materially different terms. This creates a natural re-evaluation window every 10 years, and with 10 franchised units, even a small number of renewals can represent a concentrated sales opportunity. The recent 41.67% unit growth also points to new-location openings as the most frequent software evaluation trigger.

How to read the Cafe 86 FDD

The full Cafe 86 2025 Franchise Disclosure Document is embedded below for direct review. Key sections for software vendors include Item 1 (identifying the franchisor and decision-makers), Item 11 (mandated technology and supplier obligations), Item 8 (procurement restrictions, though absent here), and Item 17 (renewal and termination terms that signal contract windows). Because the FDD is filed with state franchise regulators, it carries legal weight and reflects the franchisor's current obligations and disclosures. Reading the document directly—rather than relying on summaries—lets you spot gaps in the tech stack, understand enforcement mechanisms, and time your outreach to renewal or expansion cycles. For a ranked target list of franchise brands matched to your software category, FranCloud can help.

Questions vendors ask

Cafe 86, answered from the filing

The 2025 FDD lists only John Yau as Agent for Service of Process, indicating a centralized, owner-led buying structure. Vendors should engage Mr. Yau directly for technology discussions.
Cafe 86 mandates ADP for payroll, QuickBooks and QuickBooks Online for accounting, and When I Work for scheduling. No POS mandate is disclosed in the 2025 FDD.
Cafe 86 has 17 total US locations—10 franchised and 7 company-owned—as reported in the 2025 FDD. The brand grew units by 41.67% year-over-year.
The 2025 FDD does not include an Item 8 procurement extract, so the designated-supplier versus approved-supplier model is not publicly disclosed. Assume HQ-controlled purchasing until clarified.
With a 10-year initial term and renewal requiring a new agreement, windows likely align with franchisee onboarding (given 41.67% unit growth) and renewal cycles. The 2025 FDD confirms renewal conditions include signing the then-current agreement.
The Cafe 86 2025 FDD is filed with state franchise regulators. You can review it using the embedded PDF viewer below to analyze tech mandates, procurement rules, and decision-maker details directly.
Source

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Cafe 862025 FDDView only

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The brands you can actually sell into, from the filings.

Operator footprint

Who runs the locations

1 operators run 1 mapped locations. 0 of them are multi-unit. Aggregate counts from the filing; no names.

Operators by units owned

Single-unit1

Top states by locations

WI1

Related Quick service restaurant brands

Primary franchise filings · updated June 2026. Every figure is source-traceable and QA-checked.