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From the filings
Chicha San Chen
Retail foodSoftware purchasing at Chicha San Chen is controlled at the HQ level, with Chief Executive Officer Lin, Hui-Chuan listed as the key executive in the 2026 Franchise Disclosure Document. The brand mandates a specific Point of Sale (POS) system across its 10 franchised locations, creating a concentrated addressable market for vendors. No company-owned units are disclosed, and the operator footprint remains unmapped in our corpus.
For software vendors selling into US franchise brands.
Live signals
Ongoing fee load
What the operator pays every month
The recurring percentage of gross sales named in this filing. It is a floor, not a total — the filing discloses one of the two headline fees.
1%+of gross sales (FY2026)
15% reference
Mandated & recommended tech
The systems vendors compete with
Systems named in Item 11 of this filing. None is recorded as mandated here, which is not the same as the filing mandating nothing. Read Item 11 before treating the category as open.
rtisement stands from us. These will cost you from $5,000 to $10,000. We will use 50% of the advertisement fees you paid to purchase advertisement for you on google, Facebook, and Instagram. Refundabi
Franchisor behaviours
What the franchisor requires
21 requirements the franchisor states in this filing, each in its own words; 5 explicit no's; 8 questions the text does not settle, which is not a no.
Accounting
Does the franchisor have direct or independent electronic access to the franchisee's financial, sales or customer records?
YesItem 11
The franchisor will have independent access to all the information generated and stored in the POS system used by the franchisee.
How the franchisor buys
Does the franchisor reserve the right to change designated suppliers or systems at any time?
YesItem 8
We may change our specifications, standards and requirements at any time.
How much revenue did the franchisor and its affiliates earn from franchisee purchases in the last fiscal year?
8903245Item 8
Of the total revenue reported, $8,903,245 was derived directly from mandatory purchases and leases made by franchisees.
Does the franchisor or an affiliate receive rebates, commissions or other revenue from designated or approved suppliers?
YesItem 8
We (the “Franchisor”) and our parent company (the “Affiliate”), Fan Yuan F&B International Co., Ltd, may derive revenue, rebates, or other material consideration in connection with the required purchases or leases of products, supplies, equipment, or services by our 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?
23Item 8
in operating the Outlet will range from 23% to 27% of your total monthly expenses.
Does the franchisor charge a fee to evaluate a proposed supplier?
YesItem 8
Should any costs be incurred in the course of the evaluation and testing of a supplier, you or the supplier will be responsible for reimbursement.
Can a franchisee propose a new supplier for the franchisor's approval?
YesItem 8
Master Franchisees are at liberty to propose alternative suppliers for consideration.
Communications
Does the franchisor own or control the business telephone numbers, or take them over when the agreement ends?
YesFranchise agreement
At the time of termination or expiration of this Agreement, for any reason, Franchisee must transfer the telephone numbers for Franchisee's Store to Franchisor or cancel them and de-list them from any applicable telephone directory or other telephone number listing service.
Franchise management
Does the franchisor conduct periodic inspections, audits or evaluations of the franchised business?
YesFranchise agreement
Franchisor may inspect each Stores’ hardware, environment and sanitation, quality and sanitation of commodities, preservation of raw materials, performance of employees, and status of operation and management during normal business hours.
Can the franchisor change the operations manual and brand standards unilaterally?
YesFranchise agreement
Franchisor has the right to modify the Confidential Operations Manual at any time by the addition, deletion or other modification of the provisions thereof.
Must the franchisor approve the franchisee's site or location before opening?
YesItem 11
we must give our final consent to the location before your Outlet can be placed there
Marketing
Is the franchisee prohibited from operating its own website or social media accounts, or required to use pages the franchisor provides?
YesFranchise agreement
During the term of this Agreement, Franchisee will use the San Chen website and any other Internet or social media only as specifically authorized by Franchisor in section 6.2(a) of this Agreement, the Confidential Operations Manual or otherwise in writing to market the Franchised Business conducted at Franchisee's…
Operations
Must the franchisee buy products from a designated distributor?
YesItem 8
You must purchase these items from approved suppliers, including manufacturers, distributors, and other providers of goods and services.
Must equipment be purchased from designated or approved suppliers?
YesItem 8
You must purchase a point-of-sale system (“POS System”) for your Outlet from us.
Payments
Are royalties and other fees collected by automatic bank debit (ACH or electronic funds transfer) from the franchisee's account?
YesFranchise agreement
Franchisor requires payment for Required Inventory, Royalty and Marketing and Promotion Fees by electronic funds transfer (“EFT”) through the Automated Clearing House (“ACH”) electronic network for financial transactions (or such other automatic payment mechanism Franchisor may designate) directly from Franchisee's…
People
Does the franchisor require minimum staffing levels or specific roles?
YesItem 15
you must employ at least one designated Store Manager (if you are a sole proprietor, this will be you, and if you are an entity, this will be a Principal Equity Owner of at least 50% of the franchisee entity) who has successfully completed our initial training program.
Must employees wear uniforms specified by the franchisor?
YesFranchise agreement
Franchisor is entitled to prescribe standard uniforms and attire for all of Franchisee's San Chen personnel to enhance the customer experience at the Store and to protect Franchisor's reputation for quality service.
Point of sale
Must the franchisee use a specific point-of-sale system designated or approved by the franchisor?
YesItem 8
Every franchisee is obligated to purchase and implement an approved Point of Sale (POS) system.
Does the franchisor have independent access to the data in the franchisee's POS or computer system?
YesItem 11
The franchisor will have independent access to all the information generated and stored in the POS system used by the franchisee.
Training
Can the franchisor charge the franchisee for additional, refresher or remedial training?
YesItem 11
We may, at our discretion, charge you an additional training fee of $4,500 for one trainer from us.
Is attendance at an annual convention or conference mandatory for the franchisee?
YesItem 11
Attendance of at least one Principal Equity Owner at these meetings will be mandatory (and is highly recommended for your other Principal Equity Owners).
The filing answers no to 5 questions
- Is there a franchisee advisory council, association or committee?Item 20
- Must the franchisee participate in a customer-satisfaction or net-promoter survey program?Franchise agreement
- Is a minimum grand opening advertising spend required?
- 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
The vendor opportunity at Chicha San Chen
Chicha San Chen operates 10 franchised locations in the US, with its headquarters in California. The brand’s 2026 Franchise Disclosure Document shows no company-owned units, meaning all addressable locations are franchisee-operated but subject to HQ technology mandates. For software vendors, this is a small but tightly controlled account: a single decision-maker at the top can influence the entire system’s tech stack. The royalty rate sits at just 1.0%, and the initial franchise term runs 10 years. Average unit volume is not disclosed in the most recent FDD, so vendors should size the opportunity based on unit count and the mandated technology footprint.
Who controls software purchasing
The 2026 FDD names Lin, Hui-Chuan as Chief Executive Officer. No other executives appear in the Item 1 disclosure. With a mandated POS system and no multi-unit operators mapped in our corpus, software purchasing authority likely rests with this single HQ executive. Vendors pitching Chicha San Chen should prepare for a direct conversation with the CEO, focusing on how their solution integrates with or replaces the existing mandated POS and supports a lean, 10-unit franchise network.
Mandated and current tech stack
Chicha San Chen mandates a Point of Sale (POS) system across all franchised locations. The specific vendor is not named in the available FDD extracts, but the mandate itself signals that HQ controls the core transactional technology. No other mandated or recommended systems—such as inventory management, loyalty, or HR platforms—are disclosed. This creates an opening for vendors who can complement the POS with adjacent tools, provided they align with the CEO’s operational priorities.
Procurement, renewals, and timing
The FDD does not include an Item 8 procurement extract, so the brand’s supplier model—whether designated, approved, or open—remains undisclosed. Renewal terms, however, offer a clear timing signal. Franchisees must notify HQ in writing of their intent to renew one year before the 10-year initial term expires. At that point, HQ and the franchisee negotiate new terms, and the franchisee must sign the then-current franchise agreement, which may contain materially different terms. This renegotiation window is the most likely moment for software contract reviews or new vendor introductions. With 10 units and a 10-year term, the first major renewal cycle may still be years away, but vendors should monitor any unit growth or early renegotiation activity.
How to read the Chicha San Chen FDD
The 2026 Chicha San Chen FDD is embedded below for full review. It is filed with state franchise regulators and contains the legal and operational disclosures that govern the franchise system. Key sections for software vendors include Item 1 (executives), Item 11 (mandated systems), and Item 17 (renewal and termination). Because the operator footprint is unmapped and procurement details are sparse, the FDD itself remains the best source for identifying the exact tech mandates and decision-making structure. For a ranked target list of franchise systems aligned with your software category, FranCloud can help.
Questions vendors ask
Chicha San Chen, answered from the filing
Read the filing itself
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FDD alert
Tell me when this brand refiles.
We’ll email you the moment Chicha San Chen files a new annual FDD, usually the freshest signal of a vendor change.
Operator footprint
Who runs the locations
24 operators run 24 mapped locations. 0 of them are multi-unit. Aggregate counts from the filing; no names.
Operators by units owned
Top states by locations
| CA | 4 |
|---|---|
| TX | 2 |
| UT | 2 |
| NY | 2 |
| MA | 2 |
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Primary franchise filings · updated June 2026. Every figure is source-traceable and QA-checked.