You must adhere to our System Standards for the construction and design of the Franchised Restaurant, which will include requirements for the interior and exterior layout, signage, equipment, fixtures and trade dress, including our signature color scheme. If we have designated an approved or required supplier (which may be us or our affiliate), you must obtain the items from such supplier. If we have not designated an approved/required supplier for certain items, then you may purchase them from any supplier that meets our standards and specifications, including our preferred suppliers. We may, at any time, change, delete, add to or modify any of our standards and specifications. These changes, deletions, additions or modifications, which will be uniform for all franchisees, may require additional expenditures by you. Computer and Point of Sale (POS) System 28 CAP’T LOUI Franchise Disclosure Document 2026 We require you to purchase a Toast POS system. You must also purchase a computer system, as further detailed in Items 7 and 11, for business management. Neither we nor our affiliate derive revenue from your purchase of the computer and POS system; however, we are permitted to and may do so in the future. We require you to maintain service support contracts and/or maintenance service contracts and implement and periodically make upgrades and changes to the POS system, computer hardware and software, and credit card, debit card, and other non-cash payment systems. We may designate the vendor(s) for these support service contracts and maintenance service contracts. We have the right to establish and utilize an on-line computer monitoring system, and to use the on-line system to have independent access to remotely examine your computer system, POS and records pertaining to the operation of the Franchised Restaurant and we have no limitations on our ability to do so.
From the filings
Cap't Loui
Quick service restaurantSoftware purchasing decisions at Cap't Loui appear to flow through a small headquarters team in New Jersey, led by President Henry Hyuk Kim and Director of Operations Woog Park. The most recent FDD does not disclose any mandated technology systems, leaving the current tech stack unknown. With 23 total units and 23.5% year-over-year unit growth, the addressable market is small but expanding for vendors who can reach the right decision-maker early.
For software vendors selling into US franchise brands.
Live signals
Ordinary royalty terms
4.5% 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.
39 CAP’T LOUI Franchise Disclosure Document 2026 including Internet activities, and e-mail marketing correspondence, digital content, and electronic communications if any. This includes any websites and all Social Networking and Marketing activities, including Twitter, Facebook, Foursquare, LinkedIn or any social media outlets. This also includes any group or social buying platforms, promotions or campaigns. You must follow the most recent rules and regulations published in our Operations Manuals or other manuals we have created regarding the upkeep and communications sent out via these channels.
39 CAP’T LOUI Franchise Disclosure Document 2026 including Internet activities, and e-mail marketing correspondence, digital content, and electronic communications if any. This includes any websites and all Social Networking and Marketing activities, including Twitter, Facebook, Foursquare, LinkedIn or any social media outlets. This also includes any group or social buying platforms, promotions or campaigns. You must follow the most recent rules and regulations published in our Operations Manuals or other manuals we have created regarding the upkeep and communications sent out via these channels.
TYPE OF AMOUNT1 METHOD OF WHEN DUE TO WHOM EXPENDITURE PAYMENT PAYMENT IS TO BE MADE Initial Franchise Fee $50,000 Lump sum At signing of Us Franchise Agreement Travel & Living $1,000 to $5,000 As incurred During training Airlines, hotels, Expenses while Training2 restaurants and car rental Real Estate/Rent3 $5,000 to $80,000 As incurred Before opening Landlord Plans, Development & $250,000 to As incurred Before opening City and state Leasehold Improvements $1,000,000 licensing & Construction4 authority, contractor Architect and $10,000 to As arranged Before opening Architect and Engineering Fees4 $50,000 Engineer Equipment, Fixtures & $50,000 to As incurred Before opening Various vendors Furniture5 $200,000 Menus $500 to $2,000 As incurred Before opening Vendor Computer, Electronics $50 to $2,000 As incurred Before opening Vendors and Point of Sale Control System6 POS Monthly Software $380 to $780 As incurred Before and after Vendor Toast Fee opening Restaurant365 setup and $4,800 As incurred Before and after Vendor quarterly fee opening Restaurant365 Security deposits, utility $10,000 to As required Before opening State/local deposits, business $100,000 agencies, licenses and other prepaid utilities, vendors expenses7 Business Class Internet $100 to $300 As incurred Before and after Internet Service Service opening Provider Signage8 $8,000 to $30,000 As incurred Before opening Various vendors Initial Inventory9 $20,000 to As incurred Before opening Us and various $30,000 vendors Supplies & Misc. $2,000 to $4,000 As incurred As incurred Various vendors Expense Advertising/ Promotion/ $7,500 to $15,000 As incurred Before and after Various vendors Grand Opening opening Materials10
39 CAP’T LOUI Franchise Disclosure Document 2026 including Internet activities, and e-mail marketing correspondence, digital content, and electronic communications if any. This includes any websites and all Social Networking and Marketing activities, including Twitter, Facebook, Foursquare, LinkedIn or any social media outlets. This also includes any group or social buying platforms, promotions or campaigns. You must follow the most recent rules and regulations published in our Operations Manuals or other manuals we have created regarding the upkeep and communications sent out via these channels.
Franchisor behaviours
What the franchisor requires
23 requirements the franchisor states in this filing, each in its own words; 4 explicit no's; 7 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 8
You will purchase a software license to establish and maintain Restaurant365 as your bookkeeping, accounting and record keeping system in accordance with our requirements, as may be periodically revised.
Does the franchisor have direct or independent electronic access to the franchisee's financial, sales or customer records?
YesItem 8
We have the right to establish and utilize an on-line computer monitoring system, and to use the on-line system to have independent access to remotely examine your computer system, POS and records pertaining to the operation of the Franchised Restaurant and we have no limitations on our ability to do so.
Must the franchisee submit periodic financial statements (monthly, quarterly or annual) to the franchisor?
YesFranchise agreement
You shall, at Your expense, deliver to Us within thirty (30) days of the end of each of Your fiscal years, a complete financial statement for such fiscal year in such form as We may require
How the franchisor buys
Is the franchisor or an affiliate itself a supplier of required products, services or systems?
YesItem 8
Currently, we and/or our affiliate are the only approved supplier of the proprietary CAP’T LOUI products and services as well as other branded products and services.
Does the franchisor reserve the right to change designated suppliers or systems at any time?
YesItem 8
We may change approved and required suppliers from time to time.
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?
90Item 8
We estimate that approximately 90% to 95% of your expenditures on an ongoing basis will be for goods and services that must be purchased from either us, our affiliate, a designated supplier or in accordance with our standards and specifications.
Does the franchisor charge a fee to evaluate a proposed supplier?
YesItem 8
We charge a fee for evaluating alternative suppliers, services and products; you must pay us between $100 to $2,500 to cover our costs which will vary depending on the nature and complexity of the testing necessary for the product or service or supplier you propose for the review and/or inspection, the actual cost of…
Can a franchisee propose a new supplier for the franchisor's approval?
YesFranchise agreement
If You desire to purchase any services and products from suppliers that We have not previously approved, You or the supplier must submit a written request for such approval to Us.
Communications
Does the franchisor own or control the business telephone numbers, or take them over when the agreement ends?
YesFranchise agreement
Promptly assign to Us any interest that You may have in the telephone number(s), telephone listing(s) and/or directory(ies), social media and networking accounts, and/or Internet numbers used by You in connection with the operation of the Franchised Restaurant.
Data and IT
Must the franchisee comply with PCI, data-security or cybersecurity standards set by the franchisor?
YesFranchise agreement
You shall secure and maintain in force, at Your expense, all required licenses, permits and certificates relating to the full and proper operation of the Franchised Restaurant and shall operate the Franchised Restaurant in full compliance with all applicable laws, ordinances and regulations, including without…
Franchise management
Does the franchisor conduct periodic inspections, audits or evaluations of the franchised business?
YesItem 8
We will inspect your Franchised Restaurant as often as we deem necessary to ensure that our standards and specifications are maintained.
Can the franchisor change the operations manual and brand standards unilaterally?
YesItem 14
We may revise the contents of the Operations Manual, and you must comply with each new or changed standard.
Must the franchisor approve the franchisee's site or location before opening?
YesFranchise agreement
You will operate the Franchised Restaurant only at the location accepted by Us (the “Accepted Site”).
Marketing
Is the franchisee prohibited from operating its own website or social media accounts, or required to use pages the franchisor provides?
YesFranchise agreement
If We maintain Social Media sites and applications such as: Twitter, Facebook, LinkedIn and other sites and applications that We may establish, You will not be allowed to establish or utilize Social Media sites or applications for business purposes except those created by Us for Your use.
Is a minimum grand opening advertising spend required?
YesFranchise agreement
You are required to spend between Two Thousand Dollars ($2,000.00) and Three Thousand Dollars ($3,000.00) for Your grand opening advertising and promotion program (“Grand Opening Program”).
Is the franchisee required to spend a minimum amount on local advertising or marketing, as a percentage of sales or a fixed amount?
YesFranchise agreement
Irrespective of the development or implementation of any local, regional or national advertising program by Us, if any, You are required to spend one percent (1%) of Your Gross Revenue per month through the end of Your first full calendar year of operations; then two percent (2%) of the previous year’s Gross Sales…
Operations
Must the franchisee buy products from a designated distributor?
YesItem 8
Currently, you are required to purchase marketing materials, certain 26 CAP’T LOUI Franchise Disclosure Document 2026 construction materials for build-out such as lighting, flooring, fixtures, equipment, retail merchandise display wall and interior logo sign, and an initial mandatory start-up kit of inventory of…
Must equipment be purchased from designated or approved suppliers?
YesItem 8
If we have designated an approved or required supplier (which may be us or our affiliate), you must obtain the items from such supplier.
Payments
Are royalties and other fees collected by automatic bank debit (ACH or electronic funds transfer) from the franchisee's account?
YesItem 6
All fees are uniformly imposed by and payable only to us and are payable through Electronic Funds Transfer.
People
Does the franchisor require minimum staffing levels or specific roles?
YesItem 15
The Restaurant Manager, who will have day-to-day management responsibility for your CAP’T LOUI Franchised Restaurant, will exercise on-premises supervision and personally participate in the direct operation of the Franchised Restaurant.
Point of sale
Must the franchisee use a specific point-of-sale system designated or approved by the franchisor?
YesItem 8
We require you to purchase a Toast POS system.
Training
Can the franchisor charge the franchisee for additional, refresher or remedial training?
YesFranchise agreement
You, or a representative approved by Us or any other person who has an interest in You (if You are a group of individuals or a corporation, partnership, limited liability company, unincorporated association or similar entity) attend and satisfactorily complete such retraining or refresher training programs as We in…
Is attendance at an annual convention or conference mandatory for the franchisee?
YesItem 6
We may require you (or your Operating Principal), and/or your Restaurant Manager to attend each convention, and to pay all expenses incurred in connection with attending the event including transportation cost, meals, lodging and living expenses.
The filing answers no to 4 questions
- Does the franchisor or an affiliate receive rebates, commissions or other revenue from designated or approved suppliers?Item 8
- Must the franchisee participate in a customer-satisfaction or net-promoter survey program?Franchise agreement
- Must the franchisee participate in a regional advertising cooperative when one exists?Franchise agreement
- Must the franchisee use a CRM system designated or approved by the franchisor?Franchise agreement
The vendor opportunity at Cap't Loui
Cap't Loui operates 23 quick-service restaurants, 21 of which are franchised. The brand posted a 23.5% year-over-year unit growth rate, adding new locations at a pace that outstrips many larger chains. Average unit volume sits at $2,054,906, a figure that signals healthy per-store economics and the potential for franchisees to invest in operational software.
For software vendors, the immediate addressable market is the 21 franchised locations plus the two company-owned units. While the total unit count is small, the growth trajectory means each new opening represents a greenfield opportunity to land a tech stack before incumbents are entrenched.
Who controls software purchasing
The franchisor's Item 1 disclosure names four executives: Henry Hyuk Kim (President), Jonathan Joo (Director of Development), Woog Park (Director of Operations), and Lin Luo (Franchise Sales Director). No chief information officer, chief technology officer, or VP of IT is listed. In a chain of this size, the President and Director of Operations are the most likely buyers for operational software. The Director of Development may influence decisions tied to new store openings, while the Franchise Sales Director could be a gatekeeper for vendor introductions to franchisees.
Because the FDD does not mandate specific technology, individual franchisees may also have discretion over their own point-of-sale, scheduling, inventory, or accounting tools. Vendors should prepare to sell both to the HQ team and to multi-unit franchisees if any exist.
Mandated and current tech stack
The 2026 FDD contains no extract naming mandated or recommended technology systems. This absence is notable. Many franchisors use Item 11 to prescribe a POS platform, back-office system, or loyalty provider. Cap't Loui does not. That silence suggests one of two realities: either the franchisor has not yet standardized technology, or it leaves those choices entirely to franchisees.
For a vendor, this is both a risk and an opening. Without a mandated incumbent, there is no forced migration battle. But without a mandate, every sale is a one-off, and there is no franchisor-driven roll-out to ride. The lack of a named tech stack also means you cannot assume compatibility requirements or integration points. Discovery calls should start with a blank slate.
Procurement, renewals, and timing
Item 8 of the FDD provides no extract on procurement. There is no language describing designated suppliers, approved supplier programs, or purchasing cooperatives. This reinforces the picture of a franchisor that has not yet built a centralized supply chain or technology procurement function.
Item 17, however, does offer a timing signal. Franchisees in good standing can renew for two additional five-year terms. That capital-expenditure clause could be a lever for technology upgrades at renewal. With a 10-year initial term, the first wave of renewals for the earliest franchisees may be approaching or already underway. Vendors who map the opening dates of the 21 franchised units can back into likely renewal windows and time their outreach accordingly.
New unit openings remain the most frequent buying trigger. At a 23.5% growth rate, Cap't Loui is adding roughly five new units per year. Each new location needs a tech stack from day one. Building a relationship with the Director of Development or Franchise Sales Director now could position a vendor as the default choice for those upcoming openings.
How to read the Cap't Loui FDD
The full Franchise Disclosure Document is embedded below. It was filed with state franchise regulators in 2026 and contains the legally mandated disclosures on fees, obligations, territory, and franchisor assistance. For software vendors, the most relevant sections are Item 8 (procurement restrictions), Item 11 (franchisor assistance, including any mandated technology), and Item 17 (renewal conditions). Item 1 lists the executives who control purchasing. Read these sections first to understand where the buying power sits and what constraints exist on franchisee choice.
For a ranked target list of franchise systems that match your software category, FranCloud can help.
Ordinary royalty terms
Complete royalty terms are not confirmed.
Questions vendors ask
Cap't Loui, answered from the filing
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Operator footprint
Who runs the locations
23 operators run 30 mapped locations. 3 of them are multi-unit. Aggregate counts from the filing; no names.
Operators by units owned
Top states by locations
| NY | 8 |
|---|---|
| TX | 7 |
| NJ | 4 |
| CA | 3 |
| GA | 2 |
Related Quick service restaurant brands
Primary franchise filings · updated June 2026. Read the original filing for definitions, conditions, and qualifications.