Before you open the Outlet, you must advertise and promote the business via various channels, which includes social media, local podcast, radio, and TV programs. You must purchase banners, light box, menus, posters, and advertisement 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. Refundability of Fees The initial master franchise fee, training fee, equipment, inventory, and point of sale system are not refundable. The security deposit is refundable after we deduct the necessary expenses and damages.
From the filings
Chicha San Chen
Quick service restaurantSoftware purchasing at Chicha San Chen is controlled at the franchisor level, with CEO Hui-Chuan Lin named in Item 2 of the 2026 FDD. The filing names Facebook and Instagram by Meta as in-use systems and requires franchisees to buy and use a POS system. The US footprint is 10 franchised locations, all franchisee-owned, making this a small but tightly specified target.
For software vendors selling into US franchise brands.
Live signals
Ordinary royalty terms
1% component; full terms unconfirmed
Complete royalty terms are not confirmed for the selected filing.
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.
Before you open the Outlet, you must advertise and promote the business via various channels, which includes social media, local podcast, radio, and TV programs. You must purchase banners, light box, menus, posters, and advertisement 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. Refundability of Fees The initial master franchise fee, training fee, equipment, inventory, and point of sale system are not refundable. The security deposit is refundable after we deduct the necessary expenses and damages.
Franchisor behaviours
What the franchisor requires
22 requirements the franchisor states in this filing, each in its own words; 4 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
Is the franchisor or an affiliate itself a supplier of required products, services or systems?
YesItem 8
The Managing Director of the franchisor has an ownership interest in Fang Yuan, which is a supplier of raw materials and supplies to the franchisor’s network.
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 4 questions
- 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, all franchisee-owned, with no company-owned units. The brand is a quick-service restaurant headquartered in California. The 2026 FDD makes no financial performance representation under Item 19, so no average unit volume is available.
For software vendors, the addressable market is small: 10 units across five states. The operator footprint shows 12 mapped operators, all single-unit, with no multi-unit operators. This means every sale is a single-location decision, but the franchisor's control over procurement means one approval can open the entire system.
Who controls software purchasing
Item 2 of the FDD names Hui-Chuan Lin as Chief Executive Officer. The franchisor exercises tight control over purchasing through Item 8, which requires franchisees to buy from approved suppliers and designates exclusive suppliers for point of sale equipment, integrated point of sale back office, help desk support, and high speed internet access. Franchisees may propose alternative suppliers, but approval is at the franchisor's discretion.
The buying center is therefore at the franchisor level. A vendor pitch should target the CEO and any operations or technology staff at the franchisor, not individual franchisees. The FDD states that payments to the franchisor and purchases from designated vendors and approved suppliers range from 23% to 27% of a franchisee's total monthly operating expenses, so the franchisor has a direct financial interest in vendor selection.
Tech named in the FDD, and what is actually required
Item 11 of the FDD states: "To operate the Outlet, you must buy and use a Point of Sale (POS) System." That is the only technology explicitly required in the filing. The FDD names Facebook by Meta and Instagram by Meta as in use, but does not describe them as required.
Item 8 adds that the franchisor has exclusive supplier arrangements for point of sale equipment, integrated point of sale back office, help desk support, and high speed internet access. This means the POS hardware and software, the back-office integration, and the support layer are all controlled by the franchisor's designated suppliers. A vendor selling POS, back-office, or help desk software must first become an approved or designated supplier.
Procurement, renewals, and timing
Item 8 requires franchisees to purchase from franchisor-approved suppliers, and the franchisor may limit the number of potential suppliers it considers. The FDD states that items purchased from approved suppliers represent over 82.5% of total purchases for establishing and operating the franchised business. Franchisees can suggest alternative suppliers, but the franchisor has final approval authority.
Renewal terms under Item 17 require a franchisee to notify the franchisor in writing one year before the initial 10-year term expires. The renewal term is 5 years, and the franchisor may require the franchisee to sign the then-current franchise agreement, which may contain materially different terms. This creates a potential window for renegotiating technology requirements at renewal, but the franchisor's control remains absolute.
How to read the Chicha San Chen FDD
The embedded PDF viewer below contains the brand's 2026 Franchise Disclosure Document. For software vendors, the key sections are Item 8 (supplier restrictions and exclusive arrangements), Item 11 (technology requirements), and Item 17 (renewal and transfer terms). Item 2 lists the officers, and Item 20 would show outlet counts if needed. The filing is the authoritative source for what the franchisor requires and how purchasing decisions are made. For a ranked target list of franchise systems that fit your software, talk to FranCloud.
Ordinary royalty terms
Complete royalty terms are not confirmed.
Questions vendors ask
Chicha San Chen, answered from the filing
Read the filing itself
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Operator footprint
Who runs the locations
12 operators run 12 mapped locations. 0 of them are multi-unit. Aggregate counts from the filing; no names.
Operators by units owned
Top states by locations
| CA | 2 |
|---|---|
| TX | 1 |
| NY | 1 |
| GA | 1 |
| WA | 1 |
Related Quick service restaurant brands
Primary franchise filings · updated September 2026. Read the original filing for definitions, conditions, and qualifications.