Does the franchisor have direct or independent electronic access to the franchisee's financial, sales or customer records?
YesItem 11
We will have access to all data captured by these computers.
From the filings
No mandated tech stackHQ-led decisions
Egg Drop
Quick service restaurantSoftware purchasing decisions at Egg Drop appear to flow through its President and CEO, Youngwoo Noh, at the brand's New York headquarters. The most recent Franchise Disclosure Document (2023) does not mandate any specific technology systems, leaving the tech stack open for vendor pitches. The total addressable market in terms of unit count is not disclosed in the FDD.
For software vendors selling into US franchise brands.
Live signals
Total units
0
0 franchised
Unit growth YoY
—
vs prior filing
AUV
—
Item 19, 2023
Royalty
8%
of gross sales
Ad fund
4.5%
national + local
Initial fee
$40K
per unit
Investment range
$202K–$318K
all-in, Item 7
Procurement
Approved supplier
from the filing
Non-compete
1 years
from the filing
Item 19
No 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.
12.5%of gross sales (FY2023)
15% reference
Franchisor behaviours
What the franchisor requires
24 requirements the franchisor states in this filing, each in its own words; 5 explicit no's; 5 questions the text does not settle, which is not a no.
Accounting
Must the franchisee submit periodic financial statements (monthly, quarterly or annual) to the franchisor?
YesFranchise agreement
No later than 90 days following the end of each fiscal year, Franchisee will furnish to Franchisor a statement of the profit and loss of the Franchised Restaurant for the last fiscal year and a balance sheet as of the end of the last fiscal year, prepared in accordance with generally accepted accounting principles…
How the franchisor buys
Does the franchisor reserve the right to change designated suppliers or systems at any time?
YesItem 8
We may change our distribution arrangements in the future.
How much revenue did the franchisor and its affiliates earn from franchisee purchases in the last fiscal year?
0Item 8
Presently, there are no such considerations paid to us from any suppliers of services or products, and we have no revenues derived from such payments.
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?
75Item 8
about 75% of the total purchases and leases of products and services needed to operate a Restaurant.
Does the franchisor charge a fee to evaluate a proposed supplier?
YesItem 8
the supplier pays our then- current supplier evaluation fee
Can a franchisee propose a new supplier for the franchisor's approval?
YesItem 8
Except for items we identify by approved supplier, you may purchase all goods, services, equipment, supplies, fixtures, furnishings and inventory that we require you to have to operate your Restaurant from any supplier we recommend or from any alternative supplier whom you propose and which we approve in writing…
Communications
Does the franchisor own or control the business telephone numbers, or take them over when the agreement ends?
YesFranchise agreement
Immediately cease using the Restaurant's telephone numbers; and, on Franchisor's written demand, direct the telephone company to transfer the telephone numbers for the Restaurant to Franchisor or to any other person and location that Franchisor specifies.
Franchise management
Does the franchisor conduct periodic inspections, audits or evaluations of the franchised business?
YesFranchise agreement
Franchisor or any of Franchisor's authorized agents may at any time during normal business hours (including pre-opening and post-closing) enter the Restaurant or any other place where the Franchised Restaurant is operated and: (i) conduct an operational audit to determine Franchisee’s material compliance, as…
Can the franchisor change the operations manual and brand standards unilaterally?
YesFranchise agreement
Franchisor may make additions to, deletions from, and modifications to the Manuals from time to time in any form or fashion (the "Supplements to the Manuals").
Must the franchisor approve the franchisee's site or location before opening?
YesItem 11
We must approve any site selected, but our consent will not be unreasonably withheld.
Marketing
Is a minimum grand opening advertising spend required?
YesFranchise agreement
Franchisee must spend at least $5,000 in grand opening advertising promoting the opening of Franchisee’s Restaurant within 4 weeks before Franchisee opens the Restaurant and within three (3) months after Franchisee opens the Restaurant (the "Grand Opening Obligation").
Is the franchisee required to spend a minimum amount on local advertising or marketing, as a percentage of sales or a fixed amount?
YesFranchise agreement
Franchisee must spend at least one percent (1%) of Franchisee’s annual Gross Sales on local advertising and marketing activities.
Must the franchisee participate in a customer loyalty or rewards program?
YesFranchise agreement
Franchisee will participate in these promotional programs at Franchisee’s own cost, including the costs to purchase, lease and install all materials necessary to the promotional campaigns, including but not limited to counter cards, posters, banners, signs, photographs, give-away items and gift cards.
Operations
Must the franchisee buy products from a designated distributor?
YesFranchise agreement
A. Franchise must purchase from Franchisor or Franchisor's approved supplier(s) and/or distributor(s), the entire requirement of the Proprietary Products and Non-Proprietary Products.
Must equipment be purchased from designated or approved suppliers?
YesItem 8
The Franchise Agreement requires you to purchase the Proprietary Products and Non- 15 Proprietary Products ("Products") either directly or indirectly from our approved suppliers and/or distributors.
Payments
Are royalties and other fees collected by automatic bank debit (ACH or electronic funds transfer) from the franchisee's account?
YesFranchise agreement
Franchisee must pay all amounts owed to Franchisor by electronic funds draft by complying with the procedures established by Franchisor
Must the franchisee participate in a gift card program?
YesFranchise agreement
Franchisee will participate in these promotional programs at Franchisee’s own cost, including the costs to purchase, lease and install all materials necessary to the promotional campaigns, including but not limited to counter cards, posters, banners, signs, photographs, give-away items and gift cards.
People
Does the franchisor require minimum staffing levels or specific roles?
YesFranchise agreement
Franchisee’s Restaurant will have at least one Restaurant Manager.
Must employees wear uniforms specified by the franchisor?
YesItem 8
"Proprietary Products" include all products, services, and equipment that now comprise, or in the future may comprise, a part of our System and that are proprietary to us including, without limitation, ingredients, certain food items, uniforms, signs, menu boards, materials, supplies, paper goods and packaging.
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, maintain and update your software, computer and other POS systems that meet our specifications and requirements.
Does the franchisor have independent access to the data in the franchisee's POS or computer system?
YesItem 11
We reserve the right to use, and to have full access to, all your cash registers, computers and any other systems, and the information and data they contain.
Training
Can the franchisor charge the franchisee for additional, refresher or remedial training?
YesItem 11
We can also require that you and/or your designated manager attend additional and/or refresher training programs, as we may reasonably require, to correct, improve and enhance your operations, the System, and its members at our corporate headquarters, with durations not longer than 3 days and not more than 2 times in…
Is attendance at an annual convention or conference mandatory for the franchisee?
YesFranchise agreement
Franchisee or Franchisee’s Restaurant Manager and other personnel Franchisor designate must attend each meeting, program or session.
The filing answers no to 5 questions
- Is the franchisor or an affiliate itself a supplier of required products, services or systems?Item 8
- Is there a franchisee advisory council, association or committee?Item 8
- Does the franchisor or an affiliate receive rebates, commissions or other revenue from designated or approved suppliers?Item 8
- Is the franchisee prohibited from operating its own website or social media accounts, or required to use pages the franchisor provides?Franchise agreement
- Must the franchisee participate in a regional advertising cooperative when one exists?Franchise agreement
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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- 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 Egg Drop
Egg Drop is a quick-service restaurant concept headquartered in New York. For software vendors, the brand presents a specific profile: a franchisor with a lean executive team and no publicly mandated technology stack. The most recent Franchise Disclosure Document on file is from 2023. While the FDD does not disclose the total number of units, the franchised-versus-company-owned split, or year-over-year unit growth, it does establish the economic framework. The royalty rate is 8.0%, and the initial franchise term is 5 years. Average unit volume (AUV) is not reported.
Who controls software purchasing
According to Item 1 of the 2023 FDD, the sole executive on file is Youngwoo Noh, who serves as President and CEO. In a brand of this profile, with no other C-suite or technology leadership named, the CEO is the presumptive buyer for enterprise software. Vendors should prepare to engage directly at this level. Our corpus does not map any multi-unit operators for Egg Drop, which further concentrates purchasing influence at the franchisor headquarters rather than among a large franchisee base.
Mandated and current tech stack
The 2023 FDD does not name any mandated or recommended technology systems. This absence of data from Item 11 means there is no required point-of-sale, back-of-house, or operational software that franchisees must adopt. For a vendor, this is a double-edged signal: there is no incumbent to displace by mandate, but there is also no centralized procurement lever to force adoption across the system. A sale would likely need to prove value directly to the CEO and potentially to individual franchisees.
Procurement, renewals, and timing
Item 8 of the FDD, which typically outlines procurement restrictions and designated suppliers, did not yield an extract in our analysis. The procurement model remains unknown. The renewal terms, however, are clear. Item 17 states that a franchisee must be in substantial compliance, potentially remodel the restaurant, sign the then-current agreement, and pay a renewal fee to secure a new 5-year term. Critically, the FDD warns that the renewal contract may contain materially different terms. This five-year cycle, combined with the possibility of new contract terms, creates a recurring window where both the franchisor and franchisees may reevaluate their operational software.
How to read the Egg Drop FDD
The full 2023 FDD is embedded below. Vendors should focus on Item 11 for any updates to the technology obligations and Item 8 for supplier controls that may have been captured in later amendments. The document is filed with state franchise regulators and serves as the definitive source for the brand's legal and operational disclosures. For a ranked target list of franchise brands that match your software's ideal customer profile, FranCloud can help you prioritize your outreach.
Questions vendors ask
Egg Drop, answered from the filing
The 2023 FDD lists Youngwoo Noh as President and CEO. With no other executives on file, he is the most likely point of contact for enterprise software decisions at the brand level.
The 2023 FDD does not capture any mandated or recommended technology systems. This suggests an open environment where franchisees may select their own tools, or the information is simply not disclosed.
The total number of units, including the breakdown of franchised versus company-owned locations, is not disclosed in the 2023 FDD.
The 2023 FDD does not include an extract from Item 8 regarding procurement restrictions. It is unclear whether Egg Drop uses a designated supplier, approved supplier, or open procurement model.
The initial franchise term is 5 years. Renewals are also for 5 years, contingent on signing the then-current agreement and potentially a materially different contract. This creates a natural review cycle every five years.
The Egg Drop FDD was filed with state franchise regulators in 2023. You can review the full document in the embedded PDF viewer below to analyze Item 11 and Item 8 details directly.
Source
Read the filing itself
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FDD alert
Tell me when this brand refiles.
We’ll email you the moment Egg Drop files a new annual FDD, usually the freshest signal of a vendor change.
Operator footprint
No franchisee network yet. Egg Drop’s latest FDD reports no franchised locations.
Ownership
The portfolio behind Egg Drop
unknown of golden hind.
Related Quick service restaurant brands
Primary franchise filings · updated June 2026. Every figure is source-traceable and QA-checked.