From the filings

HQ-led decisions

Cousins Subs Systems

Quick service restaurant

Cousins Subs Systems operates 92 quick-service units (34 franchised, 58 company-owned) from its Wisconsin headquarters. Item 8 requires franchisees to lease computer hardware and software directly from Cousins Subs, putting core technology procurement at headquarters rather than the individual store.

For software vendors selling into US franchise brands.

Live signals

Total units
92
34 franchised
Franchised outlet growth
-5.556%
Item 20, last two year-ends
AUV
$865K
Item 19, 2025
Royalty
6% component; full terms unconfirmed
percentage component
Ad fund
2%
percentage component
Initial fee
$25K
per unit
Investment range
$465K–$1.16M
all-in, Item 7
Procurement
Approved supplier
from the filing
Non-compete
2 years
from the filing
Item 19
Claims
from the filing

Ordinary royalty terms

6% component; full terms unconfirmed

Complete royalty terms are not confirmed for the selected filing.

Recorded percentage components

These are recorded percentage components. Each has its own base and conditions; the chart does not state the total payment or confirm ad-fund completeness.

1recorded components (FY2026)

Recorded percentage components (FY2026)Ad fund 2%. Components use their own filing bases and conditions. Drawn against a 15% reference scale.

15% reference

Ad fund 2%

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.

FacebookMeta
MarketingItem 11

Your Local Advertising. Franchisees are required to submit all advertising and promotional materials they wish to use, including newspapers, radio and television advertising, Online Presences (defined below), specialty and novelty items, signs, boxes, napkins, bags and wrapping papers, to Cousins or its designee for approval prior to use. A franchisee may utilize a social media website (such as Facebook®) approved by Cousins, or such other Online Presences as Cousins approves in writing. If Cousins approves the use of Online Presences, you will develop the Online Presences in accordance with Cousins’ guidelines, including guidelines for posting any messages or commentary on third-party websites, and guidelines for preparing and maintaining a privacy policy. Cousins will own the rights to all Online Presences. Cousins may require that a brief statement regarding the availability of Cousins Subs franchises be included in advertising used by the franchisee and/or that signs or brochures offering and selling Cousins Subs franchises be displayed in the franchisee’s Shop. “Online Presence” means any website, domain name, email address, social media account, username, other online presence or identification of franchisee in any electronic, virtual, or digital medium of any kind.

Franchisor behaviours

What the franchisor requires

26 requirements the franchisor states in this filing, each in its own words; 4 explicit no's; 4 questions the text does not settle, which is not a no.

Accounting

Must the franchisee use an accounting or bookkeeping system designated or approved by the franchisor?

Yes

Franchise agreement

FRANCHISEE shall establish and maintain a bookkeeping, accounting and record keeping system conforming to the requirements prescribed by FRANCHISOR

Does the franchisor have direct or independent electronic access to the franchisee's financial, sales or customer records?

Yes

Item 11

Cousins has independent access to this information and data.

Must the franchisee submit periodic financial statements (monthly, quarterly or annual) to the franchisor?

Yes

Franchise agreement

FRANCHISEE will supply to FRANCHISOR on or before the twenty-fifth (25th) day of each month, in the form approved by FRANCHISOR, an activity report and a profit and loss statement and balance sheet for the last preceding calendar month.

How the franchisor buys

Is the franchisor or an affiliate itself a supplier of required products, services or systems?

Yes

Item 8

Cousins and its affiliates have determined that in order to protect their trade secrets and to monitor the manufacture, packaging, processing and sale of Trade Secret Food Products they will (i) manufacture and supply Trade Secret Food Products to a limited number of suppliers who will be authorized to sell Trade…

Does the franchisor reserve the right to change designated suppliers or systems at any time?

Yes

Franchise agreement

FRANCHISEE recognizes and agrees that from time to time hereafter FRANCHISOR may change or modify the System, including the adoption and use of new or modified trade names, trademarks, service marks or copyrighted materials, new menu items, new products, new equipment, new techniques, and new payment systems, and…

Does the franchisor or an affiliate receive rebates, commissions or other revenue from designated or approved suppliers?

Yes

Item 8

During its fiscal year ending December 28, 2025, Cousins received certain rebates from various approved suppliers totaling $1,089,284, $55,283 of which was contributed to the advertising and development fund.

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?

100

Item 8

Virtually all (i.e., 100%) of the products and services used in the establishment and operation of Cousins Subs Shop are subject to specifications or must be purchased from designated or approved suppliers.

Does the franchisor charge a fee to evaluate a proposed supplier?

Yes

Franchise agreement

FRANCHISOR reserves the right from time to time to examine the facilities of any approved supplier or distributor, including the commissary and/or bakery, if any, operated by FRANCHISEE, and to conduct reasonable testing and inspection of the ingredients, materials or supplies to determine whether they meet…

Can a franchisee propose a new supplier for the franchisor's approval?

Yes

Item 8

If you propose to offer for sale or use any brand of product not previously approved by Cousins or to purchase any product from a supplier that is not an approved supplier, you will be required to first obtain Cousins’ consent.

Communications

Does the franchisor own or control the business telephone numbers, or take them over when the agreement ends?

Yes

Franchise agreement

FRANCHISEE hereby acknowledges that all telephone numbers used in the operation of the SHOP constitute assets of the SHOP and will be used solely to identify the SHOP in accordance with this Agreement; and upon termination or expiration of this Agreement FRANCHISEE shall assign to FRANCHISOR or its designee, all…

Franchise management

Does the franchisor conduct periodic inspections, audits or evaluations of the franchised business?

Yes

Franchise agreement

FRANCHISOR or its agents shall have the right of entry and inspection of FRANCHISEE's premises at all reasonable times and, additionally, shall have the right to observe the manner in which FRANCHISEE is rendering its services and conducting its operations

Can the franchisor change the operations manual and brand standards unilaterally?

Yes

Item 11

Cousins will have the right to periodically add to and/or modify the Confidential Operations Manual to reflect changes in the specifications, standards, operating procedures, and rules prescribed by Cousins but no modification or addition will alter your fundamental status under the Franchise Agreement.

Must the franchisor approve the franchisee's site or location before opening?

Yes

Item 11

Cousins must approve of the site selected (Franchise Agreement - Sections 4.A and 4.B).

Marketing

Is a minimum grand opening advertising spend required?

Yes

Franchise agreement

FRANCHISEE shall pay FRANCHISOR, upon execution of the lease or purchase agreement for the SHOP, the sum of TEN THOUSAND DOLLARS ($10,000) for payment of FRANCHISEE's “Store Marketing Fee.”

Is the franchisee required to spend a minimum amount on local advertising or marketing, as a percentage of sales or a fixed amount?

Yes

Item 11

Each calendar quarter, a franchisee must spend on local advertising and promotion an amount not less than 3% of the gross receipts of his or her Shop for the preceding calendar quarter.

Must the franchisee participate in a customer loyalty or rewards program?

Yes

Item 8

You must participate in any gift card, gift certificate and/or loyalty card programs that Cousins requires for Cousins Subs Shops.

Must the franchisee participate in a regional advertising cooperative when one exists?

Yes

Franchise agreement

FRANCHISEE agrees to participate in and contribute its share to such cooperative advertising and promotional programs in addition to such contributions and expenditures as required pursuant to Paragraphs C. and D. of this Section.

Operations

Must the franchisee buy products from a designated distributor?

Yes

Item 8

Accordingly, you must purchase Trade Secret Food Products from Cousins, its affiliates, or a limited number of authorized suppliers.

Payments

Are royalties and other fees collected by automatic bank debit (ACH or electronic funds transfer) from the franchisee's account?

Yes

Item 6

You must participate in an electronic fund transfer system (“EFT”) for the 11 Cousins 2026 FDD 1004.001.022/445608 collection of Continuing Service Fees, Advertising and Development Fund contributions, Technology Fund contributions, and any other fees payable to Cousins or its affiliates.

Must the franchisee participate in a gift card program?

Yes

Item 8

You must participate in any gift card, gift certificate and/or loyalty card programs that Cousins requires for Cousins Subs Shops.

People

Does the franchisor require minimum staffing levels or specific roles?

Yes

Franchise agreement

The SHOP shall at all times be under the direct, on-premises supervision of FRANCHISEE or a trained and competent employee acting as full-time manager.

Must employees wear uniforms specified by the franchisor?

Yes

Item 8

(2) training, dress, general appearance and demeanor of Shop employees;

Point of sale

Must the franchisee use a specific point-of-sale system designated or approved by the franchisor?

Yes

Item 11

You must use one or more point-of-sale system terminals, a back office personal computer and a printer approved by Cousins in the operation of your Shop.

Does the franchisor have independent access to the data in the franchisee's POS or computer system?

Yes

Item 11

Cousins has independent access to this information and data.

Training

Can the franchisor charge the franchisee for additional, refresher or remedial training?

Yes

Franchise agreement

FRANCHISOR from time to time may provide and may require that previously trained and experienced Franchisees or their Designated Managers attend and successfully complete refresher training programs or seminars to be conducted at such location as may be designated by FRANCHISOR, or may be held virtually, as…

Is attendance at an annual convention or conference mandatory for the franchisee?

Yes

Franchise agreement

FRANCHISEE (or its Designated Managers) must attend an annual meeting for the Cousin Subs System at a location FRANCHISOR designates, or virtually, as FRANCHISOR determines, provided that such annual meeting will not exceed three (3) days in duration during any calendar year.

The filing answers no to 4 questions
  • Is there a franchisee advisory council, association or committee?Item 11
  • Must the franchisee comply with PCI, data-security or cybersecurity standards set by the franchisor?Franchise agreement
  • Is the franchisee prohibited from operating its own website or social media accounts, or required to use pages the franchisor provides?Franchise agreement
  • Must equipment be purchased from designated or approved suppliers?Item 8

The vendor opportunity at Cousins Subs Systems

Item 19 of the 2026 FDD makes a financial performance representation, though unit count fell 5.56% year over year.

Who controls software purchasing

Item 2 names CEO Christine A. Specht-Palmert, President Jason Westhoff, CFO Jeremiah Grube, EVP Joseph Ferguson, and VP of Operations Hilary Krekling. Item 8 goes further than most filings: franchisees must lease computer hardware and software directly from Cousins Subs itself, putting core technology procurement squarely at headquarters.

Tech named in the FDD, and what is actually required

The FDD requires none of the systems it names under Item 11 — Facebook by Meta is the only one listed, and it appears in the filing without a contractual requirement to use it. The more significant mandate sits in Item 8, where computer hardware and software must be leased from Cousins Subs rather than sourced independently.

Procurement, renewals, and timing

Item 8 requires franchisees to buy Trade Secret Food Products from Cousins Subs, its affiliates, or authorized suppliers, and to lease computer hardware and software from the franchisor directly, while other items can go through an approved-supplier process. Item 17 renewal runs on a 10-year term and requires full compliance, updated premises, and a new franchise agreement. The system maps 23 operators (1 multi-unit) across roughly 30 located units, concentrated entirely in Wisconsin.

How to read the Cousins Subs FDD

The 2026 FDD was filed with state franchise regulators. Use the embedded PDF viewer below to read Item 8's leasing terms and Item 11's technology terms directly — talk to FranCloud for a ranked list of franchise systems that fit your product.

Ordinary royalty terms

Complete royalty terms are not confirmed.

Questions vendors ask

Cousins Subs Systems, answered from the filing

CEO Christine A. Specht-Palmert and President Jason Westhoff lead headquarters in Wisconsin. Item 8 already requires franchisees to lease computer hardware and software from Cousins Subs itself, so core technology purchasing runs through corporate.
The FDD requires none of the systems it names under Item 11 — Facebook by Meta is the only one listed, and it is not required. Separately, Item 8 requires franchisees to lease computer hardware and software directly from Cousins Subs.
92 total units — 34 franchised, 58 company-owned — as of the 2026 FDD, with a majority company-operated footprint.
Item 8 sets an approved-supplier list, with computer hardware and software and Trade Secret Food Products required to come from Cousins Subs or its designated affiliates; franchisees can propose alternative suppliers for other items.
Item 17 renewal runs on a 10-year term requiring good standing and a new franchise agreement. With units down 5.56% year over year, expect refresh conversations to cluster around the mandated hardware and software lease rather than new-unit growth.
The 2026 FDD was filed with state franchise regulators. Read Item 8 for the computer hardware and software leasing terms and Item 11 for other technology terms in the embedded viewer below.
Source

Read the filing itself

Read the original document for the filing figures and their terms, page by page. Buy the original PDF to download, search, and annotate it.

Cousins Subs Systems2026 FDDView only

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The brands you can actually sell into, from the filings.

Operator footprint

Who runs the locations

23 operators run 30 mapped locations. 1 of them are multi-unit. Aggregate counts from the filing; no names.

Operators by units owned

Single-unit22
2–9 units1

Top states by locations

WI30

Related Quick service restaurant brands

Primary franchise filings · updated September 2026. Read the original filing for definitions, conditions, and qualifications.