Must the franchisee use an accounting or bookkeeping system designated or approved by the franchisor?
YesItem 8
You will be required to use the bookkeeping and financial services vendors we designate.
From the filings
Software purchasing at Caroco is controlled at the corporate level, with Dr. M. Lee Barnes, Jr. listed as the Registered Agent in the 2025 FDD. The franchise mandates use of the proprietary Caroco System and a designated payroll service, making HQ the sole gatekeeper for any technology vendor. With only one franchised unit currently operating, the addressable market is extremely narrow, but the mandated tech stack creates a captive opportunity for vendors who can integrate with or replace the existing systems.
For software vendors selling into US franchise brands.
Live signals
Franchisor behaviours
26 requirements the franchisor states in this filing, each in its own words; 2 explicit no's; 6 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 be required to use the bookkeeping and financial services vendors we designate.
Does the franchisor have direct or independent electronic access to the franchisee's financial, sales or customer records?
YesFranchise agreement
Caroco shall have unlimited, independent access to all information and data produced by or otherwise located on any of Franchisee’s Computer Systems.
Must the franchisee submit periodic financial statements (monthly, quarterly or annual) to the franchisor?
YesFranchise agreement
Franchisee shall submit to Caroco, for review or auditing, financial statements, including a balance sheet and income statement prepared on a monthly basis, Gross Profits reports and performance reports for monthly periods, and Franchisee shall also submit such forms, reports, records, information, and data as Caroco…
How the franchisor buys
Is the franchisor or an affiliate itself a supplier of required products, services or systems?
YesItem 8
Currently our affiliate is the only approved vendor of the store’s premises and equipment rented with the building.
Does the franchisor reserve the right to change designated suppliers or systems at any time?
YesItem 8
We have the right to change our business relationship with our approved vendors as well as the right to add and/or remove approved vendors from the approved vendor list, at any time.
How much revenue did the franchisor and its affiliates earn from franchisee purchases in the last fiscal year?
0Item 8
For the year ending December 31, 2024, we received 0% of our revenue of $22,891,488 from franchisee purchases.
Does the franchisor or an affiliate receive rebates, commissions or other revenue from designated or approved suppliers?
YesItem 8
During 2024, we received approximately $10,250,720 in advertising, rebates and other payments from vendors based on the amount of inventory, supplies, and merchandise consigned to you for sale at the store.
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?
97Item 8
The required purchase of products from the Recommended Vendors or other authorized vendors, including us and our affiliates, will 4333421v1.CAS.25647.G56949 Page 32 ©2025 Family Fare, LLC represent between 97% and 100% of your or the store’s overall purchases in establishing and operating a Caroco store.
Can a franchisee propose a new supplier for the franchisor's approval?
YesItem 8
If you want to use a good, service, or vendor that we have not approved, you must first submit to us key information and possibly samples.
Communications
Does the franchisor own or control the business telephone numbers, or take them over when the agreement ends?
YesFranchise agreement
Caroco shall be the sole owner of that telephone number.
Data and IT
Must the franchisee comply with PCI, data-security or cybersecurity standards set by the franchisor?
YesFranchise agreement
Franchisee shall be solely responsible for compliance with all laws pertaining to e-mails, including, but not limited to, the U.S. Controlling the Assault of Non-Solicited Pornography and Marketing Act of 2003 (known as the “CAN-SPAM Act of 2003”), and to use of automatic dialing systems, SMS text messages, and…
Franchise management
Must the franchisee participate in a customer-satisfaction or net-promoter survey program?
YesFranchise agreement
Caroco may, at its sole discretion, institute various programs for verifying customer satisfaction and/or Franchisee’s compliance with all operational and other aspects of the Caroco System, including, without limitation, marketing research surveys, a toll-free number, customer comment cards, secret shoppers, or…
Does the franchisor conduct periodic inspections, audits or evaluations of the franchised business?
YesFranchise agreement
Caroco and its agents have the right to enter the Store, with or without notice, in person or remotely via communications technology, in order to inspect, photograph, and/or videotape on-going new construction or leasehold improvements, equipment and operations, and the performance of any and all services provided in…
Can the franchisor change the operations manual and brand standards unilaterally?
YesFranchise agreement
Caroco may revise, update, or amend the Brand Standards Manual from time to time in its absolute discretion and Franchisee shall comply with all updates and amendments, including those provided through newsletters or notices.
Must the franchisor approve the franchisee's site or location before opening?
YesItem 11
We select the location for each of our franchisees’ stores based on general location and neighborhood, traffic patterns, ample parking facilities, accessibility, population and demographic studies, size, layout and other physical characteristics, and purchase or lease terms including duration.
Marketing
Is the franchisee prohibited from operating its own website or social media accounts, or required to use pages the franchisor provides?
YesFranchise agreement
Franchisee will not, directly or indirectly, establish or operate an Online Presence that in any way concerns, discusses or alludes to Caroco, the Caroco System or the Store without Caroco’s written consent, which Caroco is not obligated to provide.
Must the franchisee participate in a customer loyalty or rewards program?
YesFranchise agreement
Mandatory Promotions may include promotional pricing or loyalty programs that Franchisee must comply with.
Operations
Must the franchisee buy products from a designated distributor?
YesItem 8
You must consign, purchase, or lease all products and services you use in the franchised business from us or a source we approve.
Must equipment be purchased from designated or approved suppliers?
YesItem 8
Where we have designated an approved vendor, you must use that vendor.
Payments
Must the franchisee use a payment processor or merchant-services provider designated or approved by the franchisor?
YesItem 8
You are required to use the credit card processing service we approve.
Must the franchisee participate in a gift card program?
YesItem 16
You must accept or participate in all required payment systems, including but not limited to various currencies, credit cards, charge cards, gift cards, gift certificates, and coupons.
People
Must employees wear uniforms specified by the franchisor?
YesItem 15
All personnel must wear uniforms or other clothing approved by Caroco.
Point of sale
Must the franchisee use a specific point-of-sale system designated or approved by the franchisor?
YesItem 11
You must use the Computer Systems in the store.
Does the franchisor have independent access to the data in the franchisee's POS or computer system?
YesFranchise agreement
Caroco shall have unlimited, independent access to all information and data produced by or otherwise located on any of Franchisee’s Computer Systems.
Training
Can the franchisor charge the franchisee for additional, refresher or remedial training?
YesItem 11
If you request any additional training from us, we have the right to require you to pay our then- current additional training fee.
Is attendance at an annual convention or conference mandatory for the franchisee?
YesItem 11
Your Operating Principal and, if requested, your owners, are required to attend all conferences and other required training courses and cannot delegate this obligation to non-shareholder managers or other employees.
Caroco presents a micro-cap opportunity for software vendors. The 2025 Franchise Disclosure Document reports exactly one franchised unit, with no company-owned unit count disclosed. Average unit volume (AUV) and royalty rates are not stated in the FDD. The initial franchise term is five years. For a software vendor, the addressable market is a single location, but the franchisor’s centralized control over technology means that winning a deal at the HQ level could lock in a long-term, mandated relationship.
Dr. M. Lee Barnes, Jr. is the Registered Agent listed in Item 1 of the 2025 FDD. No other executives or buying-center roles are disclosed. In a system this small, the Registered Agent typically holds decision-making authority over vendor selection, especially when the franchise agreement mandates specific systems. Vendors should direct all outreach to this individual, as there is no multi-unit operator base to influence purchasing from the field.
The FDD mandates the “Caroco System” for franchise operations. The document does not break out whether this includes point-of-sale, inventory, scheduling, or other modules, but it is the required operational backbone. Additionally, franchisees must use a designated payroll service—the specific vendor is not named in the FDD. No other technology mandates or recommended vendors appear in the disclosure. For software vendors, this means any product that complements or replaces the Caroco System or the payroll service must be sold directly to the franchisor, not to individual operators.
Caroco’s Item 8, which typically outlines purchasing and procurement restrictions, was not extracted in the 2025 FDD. This leaves the formal procurement model—whether designated supplier, approved supplier, or open—undisclosed. However, the renewal terms in Item 17 provide a clear timeline trigger. The franchisee must be in good standing, have no more than two defaults in the prior 24 months, and give notice four to six months before the agreement expires. At renewal, the franchisor may require the franchisee to sign the then-current franchise agreement, which could include materially different terms, including a royalty rate no greater than that imposed on similarly situated renewing franchises. This renewal window is the most predictable moment for a software vendor to engage, as the franchisor may update the mandated tech stack as part of the new agreement.
The 2025 Caroco FDD is embedded below. For software vendors, the most actionable sections are Item 1 (the Registered Agent identifies the buyer), Item 11 (the franchisor’s obligation to provide the Caroco System and payroll service), and Item 17 (the renewal process that can trigger a tech stack refresh). Because the system is so small, every vendor conversation will be a direct, high-touch engagement with HQ. For a ranked target list of franchise systems that match your software category, FranCloud can help you prioritize based on tech mandates, unit counts, and decision-maker access.
Questions vendors ask
Every number on this page traces back to this document. Read it in full, page by page. Buy the original PDF to download, search, and annotate it.
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FDD alert
We’ll email you the moment Caroco files a new annual FDD, usually the freshest signal of a vendor change.
Operator footprint
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
| NC | 2 |
|---|
Ownership
unknown of m m fowler.
Related Retail food brands
Primary franchise filings · updated June 2026. Every figure is source-traceable and QA-checked.