Auphan
Mandatoryestimate includes the point-of-sale (POS) system, security cameras, wide screen televisions and a sound system. Currently we require you to purchase our integrated POS system from Auphan. It will cost
From the filings
HQ-led decisions
CHRONIC TACOS ENTERPRISES, INC.Chronic Tacos
Quick service restaurantSoftware purchasing at Chronic Tacos Enterprises, Inc. is controlled at the corporate level, with President and CEO Michael Mohammed and VP of Development Dan Mohammed as key executive contacts. The brand mandates the Auphan platform across its 29-unit system, which is 93% franchised. With an average unit volume of $913,293 and a recent unit contraction of nearly 7%, vendors should approach with a clear efficiency or compliance value proposition.
For software vendors selling into US franchise brands.
Live signals
Total units
29
27 franchised
Unit growth YoY
-6.897%
vs prior filing
AUV
$913K
Item 19, 2024
Royalty
6%
of gross sales
Ad fund
2%
national + local
Initial fee
$30K
per unit
Investment range
$284K–$909K
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
Mandated & recommended tech
The systems vendors compete with
1 of these are mandated in the franchise agreement. Each is named in Item 11 of the filing, the incumbents a challenger must displace or integrate with.
Facebook
nt image and message and to protect the Chronic Tacos Marks and Chronic Tacos System, you must not participate or market through the use of social technology, social media such as Facebook, Instagram,
Instagram
nd message and to protect the Chronic Tacos Marks and Chronic Tacos System, you must not participate or market through the use of social technology, social media such as Facebook, Instagram, Pinterest
Pinterest
and to protect the Chronic Tacos Marks and Chronic Tacos System, you must not participate or market through the use of social technology, social media such as Facebook, Instagram, Pinterest and X, soc
Franchisor behaviours
What the franchisor requires
27 requirements the franchisor states in this filing, each in its own words; 4 explicit no's; 3 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 POS System must be electronically linked to us, and you must allow us to poll the POS System on a daily or other basis at the times and in the manner established by us, with or without notice, and to retrieve transaction information including sales, sales mix, usage, and other operations data that we deem…
Must the franchisee submit periodic financial statements (monthly, quarterly or annual) to the franchisor?
YesFranchise agreement
Within forty-five (45) days following the end of each calendar quarter during the Term, Franchisee shall submit to Franchisor financial statements for the preceding quarter, including a balance sheet and profit and loss statement, prepared in the form and manner prescribed by Franchisor and in accordance with…
How the franchisor buys
Is there a franchisee advisory council, association or committee?
YesItem 11
We have formed a franchise advisory council (the “Council”) to provide advice and suggestions regarding specified matters to us.
Does the franchisor reserve the right to change designated suppliers or systems at any time?
YesFranchise agreement
Franchisor reserves the right to change the designated suppliers of these or similar services at Franchisor’s sole discretion.
Does the franchisor or an affiliate receive rebates, commissions or other revenue from designated or approved suppliers?
YesItem 8
We may, from time to time, receive rebates from Approved Suppliers based on the aggregate volume of items purchased by franchisees from Approved Suppliers.
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?
80Item 8
Approximately 90% of your start-up expenses and 80% of your ongoing expenses, other than fees disclosed in Items 5 and 6, will be for purchases from Approved Suppliers or purchases according to our specifications.
Does the franchisor charge a fee to evaluate a proposed supplier?
YesItem 8
You must pay us a fee not to exceed the actual cost of the inspection and the testing.
Can a franchisee propose a new supplier for the franchisor's approval?
YesItem 8
If you wish to procure any items from a supplier other than us or an Approved Supplier, you must obtain our approval in the manner described in Section 8.2 of the Franchise Agreement.
Communications
Does the franchisor own or control the business telephone numbers, or take them over when the agreement ends?
YesFranchise agreement
The goodwill associated with all telephone and fax numbers, email addresses, domain names, Websites or web pages, social media and other Internet addressed used in operation of the Taco Restaurant (“Electronic Communications and Media”) is an asset that belongs to Franchisor.
Data and IT
Must the franchisee comply with PCI, data-security or cybersecurity standards set by the franchisor?
YesFranchise agreement
Franchisee shall at all times be compliant with (i) the NACHA ACH Security Framework; (ii) the Payment Rules; (iii) Applicable Law regarding data privacy, data security and security breaches; and (iv) Franchisor’s security policies and
Franchise management
Does the franchisor conduct periodic inspections, audits or evaluations of the franchised business?
YesFranchise agreement
Franchisor’s authorized representatives shall have the right, but not the obligation, from time to time, to enter the Taco Restaurant during business hours, to examine the Taco Restaurant, to confer with Franchisee’s supervisorial or managerial personnel, inspect and check operations, food, beverages, furnishings…
Can the franchisor change the operations manual and brand standards unilaterally?
YesItem 11
We may, from time to time, update or change the Manuals at our sole discretion.
Must the franchisor approve the franchisee's site or location before opening?
YesFranchise agreement
Franchisee shall not enter into any Lease for a site unless and until Franchisor has approved the site and the Lease in writing.
Marketing
Is a minimum grand opening advertising spend required?
YesFranchise agreement
Franchisee must, during the period beginning thirty (30) days before the scheduled opening of Franchisee’s Taco Restaurant and continuing for fifteen (15) days after the Taco Restaurant opens for business, spend from $3,000 to $5,000 to conduct grand opening marketing and promotion for Franchisee’s Taco Restaurant.
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
You must spend at least 1% of your Gross Sales each calendar quarter on local advertising and promotion of your Taco Restaurant.
Must the franchisee participate in a customer loyalty or rewards program?
YesItem 8
You must fully participate in all guest loyalty, CRM or frequent customer programs now or in the future adopted or approved by us.
Operations
Must the franchisee buy products from a designated distributor?
YesItem 8
All “Chronic Tacos Branded Products”, “Chronic Tacos Proprietary Products” and “Non- Proprietary Products” designated by us for use and sale at or from the Franchised Business must be purchased from Approved Suppliers.
Must equipment be purchased from designated or approved suppliers?
YesFranchise agreement
All Chronic Tacos Branded Products, Chronic Tacos Proprietary Products and Non-Proprietary Products designated by Franchisor for use and sale at the Taco Restaurant must be purchased from Approved Suppliers.
Payments
Must the franchisee use a payment processor or merchant-services provider designated or approved by the franchisor?
YesFranchise agreement
“Payment Processors” means all credit card, debit card and/or ACH processors whose services Franchisor may require Franchisee to utilize, as well as payment gateway service providers.
Are royalties and other fees collected by automatic bank debit (ACH or electronic funds transfer) from the franchisee's account?
YesItem 6
Unless otherwise noted above, all fees are uniformly imposed by and payable to us by electronic funds transfer or other automatic payment mechanism we designate and are non-refundable.
Must the franchisee participate in a gift card program?
YesItem 8
You must participate in all gift certificate and/or gift card administration programs as we may designated from time to time.
People
Must employees wear uniforms specified by the franchisor?
YesFranchise agreement
Franchisee shall cause all employees, while working in the Taco Restaurant, to wear uniforms of the color, design and other specifications that Franchisor may designate from time to time and to present a neat and clean appearance.
Point of sale
Must the franchisee use a specific point-of-sale system designated or approved by the franchisor?
YesItem 11
You must purchase, use and maintain a computerized point of sale cash collection system (including a POS System network router, computer, cameras and DVR, back office computer and printer and other related hardware and software) for the Taco Restaurant as specified in the Manuals or by us in writing (the “POS System”).
Does the franchisor have independent access to the data in the franchisee's POS or computer system?
YesFranchise agreement
The POS System shall be electronically linked to Franchisor, and Franchisee shall allow Franchisor to poll the POS System on a daily or other basis at the times and in the manner established by Franchisor, with or without notice, and to retrieve transaction information including sales, menu mix, usage, and other…
Sales and CRM
Must the franchisee use a CRM system designated or approved by the franchisor?
YesFranchise agreement
Franchisee shall fully participate in all guest loyalty or frequent customer programs now or in the future adopted or approved by Franchisor.
Training
Can the franchisor charge the franchisee for additional, refresher or remedial training?
YesItem 11
We may require you, your Principal Owner, Restaurant Manager and/or other supervisorial or managerial personnel to attend additional and remedial training programs (“Post-Opening Additional Training Programs”) from time to time.
Is attendance at an annual convention or conference mandatory for the franchisee?
YesItem 11
Your Principal Owner and each Restaurant Manager must attend the Annual Franchisee Conference.
The filing answers no to 4 questions
- Must the franchisee use an accounting or bookkeeping system designated or approved by the franchisor?Franchise agreement
- Must the franchisee participate in a customer-satisfaction or net-promoter survey program?Franchise agreement
- Is the franchisee prohibited from operating its own website or social media accounts, or required to use pages the franchisor provides?Item 11
- Must the franchisee participate in a regional advertising cooperative when one exists?Item 11
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
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The vendor opportunity at Chronic Tacos
Chronic Tacos Enterprises, Inc. operates a small but concentrated quick-service restaurant system of 29 total units, 27 of which are franchised. The brand posted an average unit volume of $913,293 in its 2025 FDD, with a 6% royalty rate and a standard 10-year initial term. Year-over-year unit growth was negative 6.897%, a contraction that software vendors should factor into their outreach: a shrinking footprint can signal budget caution but also a need for operational efficiency tools that stabilize remaining locations.
The addressable market for a vendor is 29 units, all under a single corporate HQ in California. Because the system is entirely single-unit operators—21 mapped operators across roughly 21 located units, with zero multi-unit franchisees—there is no middle layer of franchisee buying groups. Every technology decision flows through the franchisor.
Who controls software purchasing
Software purchasing authority sits with the executive team named in Item 1 of the 2025 FDD. Michael Mohammed, President and Chief Executive Officer, is the top decision-maker. Dan Mohammed, Vice President of Development and Canadian Operations, likely influences operational technology choices. David Mohammed, Director of Marketing and Secretary, may weigh in on customer-facing or marketing tech. Randall Wyner, Director of Sales and Founder, and Jacob Cronick, Digital Content Manager, round out the disclosed leadership. No dedicated IT or procurement executive is listed, meaning a vendor pitch should speak directly to the president and VP of development.
Mandated and current tech stack
The 2025 FDD mandates exactly one named system: Auphan. This platform serves as the operational backbone across the franchise system. No other POS, inventory, labor, or delivery-tech vendors are disclosed as required or recommended. For a software vendor, this represents both a constraint and an opening: any solution that integrates with or complements Auphan has a clearer path, while a direct replacement faces a mandated incumbent.
Procurement, renewals, and timing
Item 8 of the 2025 FDD does not extract a designated supplier list or procurement restrictions beyond the Auphan mandate. This suggests the franchisor retains flexibility in vendor selection for non-mandated categories. Renewal conditions in Item 17 are stringent: franchisees must not have committed three or more material defaults in any 18-month period, must renovate to then-current standards, and must sign the then-current franchise agreement, which may contain materially different terms. The renewal term is 10 years. With unit count declining, vendors may find openings tied to franchisee turnover or corporate efforts to re-equip remaining locations.
How to read the Chronic Tacos FDD
The full 2025 Franchise Disclosure Document is embedded below. It contains the legal and operational disclosures that govern the franchise system, including the Item 1 executive roster, Item 11 tech mandates, Item 8 procurement obligations, and Item 17 renewal terms. Reviewing the FDD directly gives software vendors the factual grounding needed to align a pitch with the franchisor’s actual requirements and contract cycle. For a ranked target list of franchise systems matched to your software category, FranCloud can help.
Questions vendors ask
CHRONIC TACOS ENTERPRISES, INC.Chronic Tacos, answered from the filing
President and CEO Michael Mohammed leads the buying center, supported by VP of Development Dan Mohammed and Director of Marketing David Mohammed. No separate CIO or CTO is listed in the 2025 FDD.
The 2025 FDD mandates Auphan as the technology platform. No other named POS, back-office, or operational systems are disclosed as required.
There are 29 total units: 27 franchised and 2 company-owned. All 21 mapped operators are single-unit franchisees, with no multi-unit operators on file.
The 2025 FDD does not extract a designated or approved supplier list in Item 8. The procurement model beyond the Auphan mandate is not publicly detailed.
Initial franchise terms run 10 years. Renewals require signing the then-current agreement, which may include materially different terms. Unit count contracted 6.9% year-over-year, suggesting possible churn-related openings.
The 2025 FDD is filed with state franchise regulators. You can review it directly in the embedded PDF viewer below.
Source
Read the filing itself
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FDD alert
Tell me when this brand refiles.
We’ll email you the moment CHRONIC TACOS ENTERPRISES, INC.Chronic Tacos files a new annual FDD, usually the freshest signal of a vendor change.
Operator footprint
Who runs the locations
21 operators run 21 mapped locations. 0 of them are multi-unit. Aggregate counts from the filing; no names.
Operators by units owned
Single-unit21
Related Quick service restaurant brands
Primary franchise filings · updated June 2026. Every figure is source-traceable and QA-checked.