From the filings
Software purchasing at CWE America is controlled at the franchisor level, with President Gregory J. Carafello and Operations Manager/Franchise Support Tina Ricchio named in the 2024 FDD. The system mandates the Fusion Platform across its 109 locations, 107 of which are franchised. With a 10-year initial term and a recent -20.7% unit contraction, vendors face a concentrated, single-brand opportunity where HQ holds the keys to tech decisions.
For software vendors selling into US franchise brands.
Live signals
Ongoing fee load
The recurring percentage of gross sales named in this filing, before rent, labour or any technology fee.
12%of gross sales (FY2024)
15% reference
Franchisor behaviours
29 requirements the franchisor states in this filing, each in its own words; 1 explicit no; 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?
YesFranchise agreement
At all times, Franchisee shall exclusively use the Business Management Systems designated by Franchisor, in Franchisor’s Reasonable Business Judgment, and as may be modified, supplemented or replaced by Franchisor from time to time.
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 business management system and will have access to all data related to the financial performance of your Office.
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
We may designate ourselves and our affiliates as exclusive suppliers of source restricted goods and services.
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?
176347.76Item 8
During the fiscal year ending December 31, 2022, we earned $176,347.76.
Does the franchisor or an affiliate receive rebates, commissions or other revenue from designated or approved suppliers?
YesItem 8
We and/or our affiliates receive rebates, payments and other material benefits from some approved suppliers based on your purchases and we reserve the right to expand rebate programs in the future.
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?
20Item 8
to represent approximately 35% of your total purchases and leases in establishing the Franchised Business and approximately 20% 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 Office.
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
Although you are responsible for selecting a site for your Office Location you must obtain our approval of your Office 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, establish, or maintain any websites, domain names, email addresses, web-based media or digital media used in your Office and may not use the Licensed Marks associated with any, unless expressly approved by us in writing.
Is a minimum grand opening advertising spend required?
YesItem 7
You must spend a minimum of $18,000 prior to the opening your Office to promote your opening launch.
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
Currently you must spend not less than $800 per month on the local marketing of your Office.
Must the franchisee participate in a customer loyalty or rewards 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, business management integrated, web based, and/or app based, ordering, customer rewards, and/or gift card systems.
Must the franchisee participate in a regional advertising cooperative when one exists?
YesFranchise agreement
If Franchisee’s Office or Designated Territory is located within the geographic area of an Advertising Cooperative, franchisee must participate in and contribute to the Advertising 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 business management 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, business management integrated, web based, and/or app based, ordering, customer rewards, and/or gift card systems.
People
Must employees wear uniforms specified by the franchisor?
YesItem 11
All owners and employees are required to wear and maintain System branded apparel.
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 business management system and will have access to all data related to the financial performance of your Office.
Sales and CRM
Must the franchisee use a CRM system designated or approved by the franchisor?
YesFranchise agreement
“Business Management System” refers to and means the software, internet, web based and/or cloud based system or systems, point of sale system or systems and customer relationship management system or systems as same may be individually, or collectively, designated by Franchisor, in Franchisor’s Reasonable Business…
Training
Can the franchisor charge the franchisee for additional, refresher or remedial training?
YesFranchise agreement
Franchisee or, if Franchisee is a Corporate Entity, Franchisee’s Managing Owner and Manager, at Franchisee’s sole cost and expense, must attend and successfully complete all refresher training courses or system-wide training courses, additional training programs and seminars as Franchisor periodically may designate…
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 we designate.
CWE America operates 109 total units, 107 of which are franchised and 2 company-owned. The system is concentrated in the retail non-food segment, with its heaviest footprints in Florida (10 units), Georgia (7), California (5), New Jersey (5), and Michigan (5). All 83 mapped operators are single-unit franchisees; there are no multi-unit operators in the 2–9, 10–24, or 25+ bands. That structure means every technology decision flows through the franchisor, not through a fragmented base of large franchisee groups.
Year-over-year unit growth sits at -20.741%, signaling contraction. For software vendors, this creates a dual dynamic: a smaller but potentially urgent addressable market where HQ may be focused on operational efficiency and cost control. The royalty rate is 8.0%, and the initial franchise term is 10 years. No average unit volume (AUV) is disclosed in the most recent FDD.
The 2024 FDD lists three executives in Item 1: Gregory J. Carafello (President), Eric George (Finance Manager), and Tina Ricchio (Operations Manager/Franchise Support). In a system this size, with no multi-unit operators and a mandated technology platform, the President and Operations Manager are the most likely software buying center. Finance Manager Eric George likely plays a role in budget approval and vendor financial review. There is no parent company on file; CWE America appears independently owned, which keeps the decision chain short and direct.
CWE America mandates the Fusion Platform across its system, per the 2024 FDD. No other named systems or vendors appear in the available Item 11 disclosures. For vendors selling complementary or replacement software, the Fusion Platform is the incumbent to understand. Any pitch should address integration with or migration from that environment. Because the system does not disclose additional mandated tools, there may be gaps in areas like HR, scheduling, inventory, or analytics that are currently filled by non-mandated, location-level choices—though those choices are not documented in the FDD.
The FDD does not include an Item 8 procurement extract, so the formal procurement model—whether designated supplier, approved supplier, or open—is not publicly disclosed. In practice, the existence of a mandated platform suggests a top-down approach where HQ selects core systems and franchisees must adopt them.
Renewal terms are detailed in Item 17. To renew, a franchisee must provide 180 days' prior written notice, sign the then-current Franchise Agreement, pay a renewal fee, remodel and upgrade the location to current standards, and secure the legal right to the premises. Owners must also personally guarantee the renewed agreement. The renewal term is 10 years. These conditions create natural technology review points: as franchisees approach renewal and face required upgrades, HQ may reevaluate the mandated stack. With the recent unit contraction, the near-term focus is more likely on retention and operational tightening than on expansion-driven tech adoption.
The 2024 CWE America Franchise Disclosure Document is embedded below. Key sections for software vendors include Item 1 (executives and ownership), Item 11 (mandated systems and suppliers), Item 8 (procurement restrictions, though absent here), and Item 17 (renewal triggers that can open tech evaluation windows). Because the system is small and HQ-driven, the FDD is the single most important document for understanding who buys and when. For a ranked target list of franchise systems matched to your software category, FranCloud can help.
Questions vendors ask
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FDD alert
We’ll email you the moment CWE America files a new annual FDD, usually the freshest signal of a vendor change.
Operator footprint
83 operators run 83 mapped locations. 0 of them are multi-unit. Aggregate counts from the filing; no names.
Operators by units owned
Top states by locations
| FL | 10 |
|---|---|
| GA | 7 |
| CA | 5 |
| NJ | 5 |
| MI | 5 |
Related Retail non food brands
Primary franchise filings · updated June 2026. Every figure is source-traceable and QA-checked.