Must the franchisee use an accounting or bookkeeping system designated or approved by the franchisor?
YesFranchise agreement
Franchisee cannot substitute or replace the Business Management System in favor of any substitutes or other systems.
From the filings
No mandated tech stackHQ-led decisions
Chip City
Quick service restaurantSoftware purchasing at Chip City is controlled at the headquarters level by a small executive team, including CEO Peter Phillips and CFO Dionisios Vangelatos. The most recent Franchise Disclosure Document does not name any mandated point-of-sale or operational technology vendors. With 44 company-owned units and unknown franchised unit counts, the addressable market is limited to the current corporate footprint and any future franchise expansion.
For software vendors selling into US franchise brands.
Live signals
Total units
44
0 franchised
Unit growth YoY
—
vs prior filing
AUV
$730K
Item 19, 2024
Royalty
6%
of gross sales
Ad fund
2%
national + local
Initial fee
$40K
per unit
Investment range
$293K–$526K
all-in, Item 7
Procurement
Approved supplier
from the filing
Non-compete
2 years
from the filing
Item 19
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.
8%of gross sales (FY2025)
15% reference
Franchisor behaviours
What the franchisor requires
28 requirements the franchisor states in this filing, each in its own words; 1 explicit no; 5 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
We will have independent access to all of the information and data that is electronically transmitted on your point of sale system and will have access to all data related to the financial performance of your Shop.
Must the franchisee submit periodic financial statements (monthly, quarterly or annual) to the franchisor?
YesFranchise agreement
within 30 days of the end of each calendar month Franchisee shall submit to Franchisor monthly financial statements and other reports related to the operations of the Franchised business
How the franchisor buys
Is the franchisor or an affiliate itself a supplier of required products, services or systems?
YesItem 8
Our affiliate, Chip Kitchen LLC, is currently designated as an approved supplier of cookies.
Does the franchisor reserve the right to change designated suppliers or systems at any time?
YesItem 8
We may designate a supplier, including ourselves or our affiliates, as the exclusive supplier for the System.
How much revenue did the franchisor and its affiliates earn from franchisee purchases in the last fiscal year?
0Item 8
During the fiscal year ending December 31, 2024, we have not received revenue from suppliers from franchisee purchases of source restricted products or services.
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?
40Item 8
approximately 40% of your total purchases and leases in establishing the Franchised Business and approximately 40% of the on-going operating expenses of the Franchised Business.
Does the franchisor charge a fee to evaluate a proposed supplier?
YesItem 8
We may charge you a fee equal to the costs and expenses that we incur in reviewing and evaluating an alternate supplier, product, and/or service requested by you.
Can a franchisee propose a new supplier for the franchisor's approval?
YesItem 8
If you want to purchase or lease a source restricted item from a supplier that has not been previously approved or designated by us in writing, you must send us a written request for approval and submit additional information, samples, and testing data that we may request.
Communications
Does the franchisor own or control the business telephone numbers, or take them over when the agreement ends?
YesFranchise agreement
In the event of the termination of this Agreement, for any reason, that the accounts related to all telephone numbers associated with the Franchised Business and all rights in and to the telephone numbers associated with the Franchised Business, shall, at Franchisor’s election, be transferred to Franchisor.
Franchise management
Does the franchisor conduct periodic inspections, audits or evaluations of the franchised business?
YesFranchise agreement
Franchisor has the right at any and all times during business hours, throughout the terms of this Agree and without prior notice to Franchisee, to inspect Franchisee’s Shop.
Can the franchisor change the operations manual and brand standards unilaterally?
YesItem 11
At all times, we reserve the right to supplement, modify and update the Manuals.
Must the franchisor approve the franchisee's site or location before opening?
YesItem 11
You must obtain our approval of your Shop Location.
Marketing
Is the franchisee prohibited from operating its own website or social media accounts, or required to use pages the franchisor provides?
YesItem 11
You may not use any websites, web-based media or digital media unless expressly approved by us in writing.
Is a minimum grand opening advertising spend required?
YesItem 7
You must spend a minimum of $5,000 prior to the opening your Shop to promote your grand opening.
Is the franchisee required to spend a minimum amount on local advertising or marketing, as a percentage of sales or a fixed amount?
YesItem 11
On an on-going calendar year quarterly basis, you must spend not less than 2% of your quarterly Gross Sales on the local marketing of your Shop.
Must the franchisee participate in a regional advertising cooperative when one exists?
YesItem 11
If we establish a cooperative within a market that includes your Shop you must contribute to the cooperative in such amounts and frequency as determined by the cooperative.
Operations
Must the franchisee buy products from a designated distributor?
YesItem 8
You must purchase the System Supplies, as designated by us, from us, our affiliates, and/or our designated suppliers.
Must equipment be purchased from designated or approved suppliers?
YesItem 8
You may only use those products, supplies, equipment, technology systems, and services that we authorize and designate in writing.
Payments
Must the franchisee use a payment processor or merchant-services provider designated or approved by the franchisor?
YesItem 8
Credit Card Processing – You must use our designated supplier and vendor for credit card processing which may be integrated with the point of sale system that we designate.
Must the franchisee participate in a gift card program?
YesItem 8
Online Ordering, Customer Rewards, and Gift Cards – You must use our designated supplier and vendor for the ability to access and use online, point of sale integrated, web based, and/or app based, ordering, customer rewards, and/or gift card systems.
People
Does the franchisor require minimum staffing levels or specific roles?
YesItem 15
At all times, your Shop must be managed and supervised on-site by either a Managing Owner or Operating Manager.
Must employees wear uniforms specified by the franchisor?
YesItem 11
you must ensure that all employees wear and maintain the proper uniforms with our approved System branded apparel and uniforms including, but not limited to, the apparel and uniforms comprising System Supplies.
Point of sale
Must the franchisee use a specific point-of-sale system designated or approved by the franchisor?
YesItem 11
You must purchase, license and use the computer, point of sale, business management, and ordering systems that we designate.
Does the franchisor have independent access to the data in the franchisee's POS or computer system?
YesItem 11
We will have independent access to all of the information and data that is electronically transmitted on your point of sale system and will have access to all data related to the financial performance of your Shop.
Sales and CRM
Must the franchisee use a CRM system designated or approved by the franchisor?
YesFranchise agreement
Franchisee cannot substitute or replace the Business Management System in favor of any substitutes or other systems.
Training
Can the franchisor charge the franchisee for additional, refresher or remedial training?
YesFranchise agreement
Franchisor reserves the right to assess Franchisee reasonable charges for such training.
Is attendance at an annual convention or conference mandatory for the franchisee?
YesItem 6
If we offer a franchisee annual conference in a given year you will be required to attend the conference on the dates and at the location that we designate.
The filing answers no to 1 question
- Does the franchisor or an affiliate receive rebates, commissions or other revenue from designated or approved suppliers?Item 8
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.
The franchisor's owner/CEO decides; an ops or franchise-development lead may evaluate.
VP SalesHead of SalesCROSales Director
- 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%.
- 82.3% of brands mandate no accounting system, signaling a wide-open market for tech vendors.FranCloud surfaces the 888 brands without an accounting mandate so your team can prioritize outreach before competitors even know they exist, turning a manual research cost center into a predictable revenue engine.
- 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.
The vendor opportunity at Chip City
Chip City is a quick-service restaurant brand specializing in cookies, headquartered in Delaware. The brand operates 44 units, all of which are company-owned. The franchised unit count is not disclosed in the 2025 FDD, meaning the current software addressable market consists entirely of these corporate locations. Average unit volume sits at $729,716, with a 6% royalty and a 10-year initial franchise term. The brand is part of PPTG Holdings, a parent entity of unknown structure. For software vendors, the immediate opportunity is a single-owner, HQ-controlled environment where a handful of executives make technology decisions for a concentrated footprint.
Who controls software purchasing
The executive team listed in Item 1 of the FDD includes Peter Phillips (Chief Executive Officer), Ezra Mamiye (Chief Strategy Officer), Dionisios Vangelatos (Chief Financial Officer), and Lorraine Palazzo (Director of Operations). No Chief Information Officer or VP of Technology is disclosed. In a 44-unit corporate-owned chain, the CEO and CFO are the likely budget holders for any software investment, while the Director of Operations would influence day-to-day tool selection. This is a tight, centralized buying center, not a distributed franchisee-driven model. Vendors should target the C-suite directly, framing conversations around operational efficiency and unit-level economics for a single corporate entity.
Mandated and current tech stack
The 2025 FDD does not name any mandated or recommended technology systems. No point-of-sale vendor, accounting platform, inventory management tool, or loyalty provider is cited. This absence is significant: it suggests Chip City either has no standardized tech stack, or it chooses not to disclose it in the FDD. For a brand growing from a corporate base, the former is plausible. Vendors should approach this as an open greenfield, but must verify in discovery whether an incumbent is already entrenched at HQ level.
Procurement, renewals, and timing
Item 8 of the FDD, which typically outlines procurement restrictions and designated suppliers, provided no extract in this data. Without that signal, the purchasing model remains unknown. On renewals, Item 17 offers a clearer picture: franchise agreements can be renewed for successive 5-year terms, provided the franchisee gives 180 days' written notice, pays a renewal fee, signs the then-current form of agreement, remodels to current standards, and secures continuing occupancy rights. However, because no franchised units are disclosed, these renewal windows are theoretical. The only active unit base is the 44 corporate locations, where technology decisions are not bound by franchise renewal cycles.
How to read the Chip City FDD
The 2025 Chip City Franchise Disclosure Document is embedded below. Pay close attention to Item 1 for executive contacts, Item 8 for any supplier mandates (not captured in our extract), and Item 11 for the franchisor's obligations regarding technology and operational support. The lack of disclosed franchised units and multi-unit operators means the brand is in an early or tightly controlled expansion phase. For vendors, this FDD is most useful for identifying the exact individuals who sign software contracts, not for mapping a large franchisee network.
If your ICP includes small-but-growing corporate-owned chains with no entrenched tech stack, Chip City warrants a conversation. FranCloud can show you a ranked target list of similar franchise systems where the buying center is equally concentrated and the tech landscape equally open.
Questions vendors ask
Chip City, answered from the filing
Key decision-makers include CEO Peter Phillips, CFO Dionisios Vangelatos, and Director of Operations Lorraine Palazzo. As a small, HQ-controlled chain, major software decisions likely require approval from this core leadership group.
The 2025 FDD does not disclose any mandated or recommended POS, accounting, or operational technology systems. Vendors should treat this as a greenfield discovery opportunity with no incumbent disclosed.
Chip City operates 44 total units, all company-owned. The operator footprint shows 4 mapped operators concentrated in Delaware. No multi-unit franchisees are recorded.
The FDD does not include an Item 8 procurement extract, so it is unclear whether Chip City uses designated suppliers, an approved-supplier program, or an open purchasing model. This must be clarified during discovery.
Renewal terms are for 5 years, requiring 180 days' written notice and a renewal fee. With no franchised unit data disclosed, renewal-driven software evaluation windows cannot be predicted from the 2025 FDD alone.
The 2025 Chip City FDD was filed with state franchise regulators. You can view the full document in the embedded PDF viewer below to analyze technology mandates, supplier terms, and decision-maker disclosures directly.
Source
Read the filing itself
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FDD alert
Tell me when this brand refiles.
We’ll email you the moment Chip City files a new annual FDD, usually the freshest signal of a vendor change.
Operator footprint
Who runs the locations
4 operators run 4 mapped locations. 0 of them are multi-unit. Aggregate counts from the filing; no names.
Operators by units owned
Single-unit4
Top states by locations
| DE | 4 |
|---|
Ownership
The portfolio behind Chip City
unknown of pptg holdings.
Related Quick service restaurant brands
Primary franchise filings · updated August 2026. Every figure is source-traceable and QA-checked.