The vendor opportunity at Chip City
Chip City operates 44 company-owned quick-service cookie shops, with an average unit volume of $729,716. The brand does not disclose any franchised units in its 2025 FDD, meaning the entire system is under direct corporate control. For software vendors, this creates a concentrated sales target: a single buying center at HQ that governs all locations. The 6% royalty rate and 10-year initial term suggest a stable operating model, but the lack of franchised units limits the addressable market to those 44 shops unless a franchising program launches.
Who controls software purchasing
All purchasing authority sits at Chip City’s headquarters in Delaware. The 2025 FDD does not list individual executives, so vendors will need to identify the operations or technology leadership through direct outreach. Because every unit is company-owned, there is no multi-unit owner or franchisee layer to navigate. The decision-making process is centralized, and any software adoption would likely require approval from senior operations management.
Mandated and current tech stack
The only mandated technology disclosed in the 2025 FDD is Square, which serves as the point-of-sale system across all locations. No additional operational, inventory, HR, or marketing platforms are identified as required. This leaves open the possibility that other tools are used at the discretion of HQ or that the tech stack is minimal. Vendors offering complementary solutions—such as loyalty, delivery integration, or workforce management—should inquire about current gaps during discovery.
Procurement, renewals, and timing
Item 8 of the 2025 FDD does not provide a clear procurement signal, so it is unknown whether Chip City designates specific suppliers, maintains an approved vendor list, or allows open purchasing. Vendors should clarify this early in conversations. On renewals, Item 17 outlines a 5-year renewal term, requiring 180 days’ written notice, compliance with the current agreement, a renewal fee, and a remodel to meet current standards. The initial franchise term is 10 years, and with no franchised units, renewal cycles may not yet be a major source of contract churn. However, any corporate-level software agreements could follow similar multi-year rhythms.
How to read the Chip City FDD
The 2025 Chip City Franchise Disclosure Document is the primary source for understanding the brand’s obligations, fees, and operational mandates. Key sections for software vendors include Item 11 (franchisor’s obligations), which confirms the Square mandate, and Item 17 (renewal), which reveals the 5-year renewal window and conditions. Item 8 is silent on procurement restrictions, so vendors should treat that as an open question. The FDD is filed with state franchise regulators and is available in the embedded viewer below for full review.
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