ADPADP
ing and ongoing guidance on HR and personnel matters (which may include your own HR lawyer and/or a third party service provider (including as a payroll processing company such as ADP or Paychex, and/
From the filings
Falafel
Quick service restaurantSoftware purchasing authority at Falafel appears to rest with a single-location operator, as the 2026 Franchise Disclosure Document shows just 1 mapped unit and no multi-unit franchisees. No mandated or recommended technology systems are disclosed in the FDD, and no HQ executives are on file, suggesting a flat, owner-operator buying structure. The addressable market is extremely small—1 total unit in Minnesota—making this a highly targeted, account-based sales opportunity rather than a volume play.
For software vendors selling into US franchise brands.
Live signals
Total units
—
system-wide
Unit growth YoY
—
vs prior filing
AUV
—
Item 19, 2026
Royalty
—
of gross sales
Ad fund
—
national + local
Initial fee
$50K
per unit
Investment range
—
all-in, Item 7
Procurement
—
from the filing
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.
Apple PayApple
mandatory. The term “Payment Vendors” includes, among other things, companies that provide services for electronic payment, such as near field communication vendors (for example, “Apple Pay” and “Goog
FacebookMeta
munications that can be accessed through electronic means, including, but not limited to, the Internet, World Wide Web, webpages, microsites, social networking sites (for example, Facebook, Twitter, L
Google PayGoogle
erm “Payment Vendors” includes, among other things, companies that provide services for electronic payment, such as near field communication vendors (for example, “Apple Pay” and “Google Wallet”). 12.
InstagramMeta
c means, including, but not limited to, the Internet, World Wide Web, webpages, microsites, social networking sites (for example, Facebook, Twitter, LinkedIn, You Tube, Pinterest, Instagram, TikTok, e
LinkedInLinkedIn
n be accessed through electronic means, including, but not limited to, the Internet, World Wide Web, webpages, microsites, social networking sites (for example, Facebook, Twitter, LinkedIn, You Tube,
PaychexPaychex
ongoing guidance on HR and personnel matters (which may include your own HR lawyer and/or a third party service provider (including as a payroll processing company such as ADP or Paychex, and/or a pro
PinterestPinterest
h electronic means, including, but not limited to, the Internet, World Wide Web, webpages, microsites, social networking sites (for example, Facebook, Twitter, LinkedIn, You Tube, Pinterest, Instagram
QuickBooksIntuit
tained in digital form, accessible to us and/or or designee (for example, our accountants) remotely and in that digital form, and using a software program or online site (such as “QuickBooks”) that we
SnapchatSnapchat
ccessed through electronic means, including the Internet, World Wide Web, webpages, microsites, social media and networking sites (including Facebook, Twitter, LinkedIn, You Tube, Snapchat, Pinterest,
TikTokTikTok
cluding, but not limited to, the Internet, World Wide Web, webpages, microsites, social networking sites (for example, Facebook, Twitter, LinkedIn, You Tube, Pinterest, Instagram, TikTok, etc.), blogs
TwitterX
s that can be accessed through electronic means, including, but not limited to, the Internet, World Wide Web, webpages, microsites, social networking sites (for example, Facebook, Twitter, LinkedIn, Y
Franchisor behaviours
What the franchisor requires
32 requirements the franchisor states in this filing, each in its own words; 2 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?
YesItem 5
We have the right to specify the accounting software and a common chart of accounts, and, if we do so, you agree to use that software and chart of accounts (and require your bookkeeper and accountant to do so) in preparing and submitting your financial statements to us.
Does the franchisor have direct or independent electronic access to the franchisee's financial, sales or customer records?
YesFranchise agreement
You agree to afford us unimpeded access to your Computer System and Required Software, including all information and data maintained thereon, in the manner, form, and at the times that we request.
Must the franchisee submit periodic financial statements (monthly, quarterly or annual) to the franchisor?
YesItem 5
You agree to provide us, at your expense, and in a format that we reasonably specify, a complete annual financial statement prepared on a review basis by an independent certified public accountant (as to whom we do not have a reasonable objection) within ninety (90) days after the end of each fiscal year of the…
How the franchisor buys
Is the franchisor or an affiliate itself a supplier of required products, services or systems?
YesItem 5
we have the right to appoint only one supplier for any particular Product, ingredient or item (which may be us or one of our affiliates)
Does the franchisor reserve the right to change designated suppliers or systems at any time?
YesItem 5
We have the right to require you to use one or more designated telephone vendors.
How much revenue did the franchisor and its affiliates earn from franchisee purchases in the last fiscal year?
0Item 5
Although the Company had not generated revenue as of March 3, 2026, the Company’s expected revenue recognition policy is as follows:
Does the franchisor or an affiliate receive rebates, commissions or other revenue from designated or approved suppliers?
YesItem 5
We have the right to collect and retain all manufacturing allowances, marketing allowances, rebates, credits, monies, payments, or benefits (collectively, “Allowances”) offered by suppliers to you or to us (or our affiliates) based upon your purchases of Products, equipment, and other goods and services.
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?
95Item 5
We estimate that your product purchases from approved suppliers and according to our specifications will represent approximately 95% of your total product purchases in establishing the Franchised Business, and approximately 95% in the continuing operation of the Franchised Business.
Does the franchisor charge a fee to evaluate a proposed supplier?
YesItem 5
Either you or the proposed new supplier must pay us a charge (which will not exceed the reasonable cost of the inspection and the actual cost of the tests).
Can a franchisee propose a new supplier for the franchisor's approval?
YesItem 5
If you want to buy any supplies, or any other items from an unapproved supplier, you first must submit to us a written request asking for our approval to do so.
Communications
Does the franchisor own or control the business telephone numbers, or take them over when the agreement ends?
YesItem 5
We may designate, and own, the telephone numbers for your Franchised Business.
Data and IT
Must the franchisee comply with PCI, data-security or cybersecurity standards set by the franchisor?
YesItem 5
You agree to comply with the then-current Payment Card Industry Data Security Standards as those standards may be revised and modified by the PCI Security Standards Council, LLC
Franchise management
Must the franchisee participate in a customer-satisfaction or net-promoter survey program?
YesItem 5
You agree to participate in such programs as we require, and promptly pay the then-current charges of the evaluation service.
Does the franchisor conduct periodic inspections, audits or evaluations of the franchised business?
YesItem 5
you also grant to us and our agents the right to enter upon the Franchised Business premises at any reasonable time for the purpose of conducting inspections
Can the franchisor change the operations manual and brand standards unilaterally?
YesItem 5
We have the right to revise the contents of the Brand Manual whenever we deem it appropriate to do so, and you agree to make corresponding revisions to your copy of the Brand Manual and to comply with each new or changed standard.
Must the franchisor approve the franchisee's site or location before opening?
YesItem 5
Each Shop shall be located at a site that we have approved, within the Development Area, as provided below.
Marketing
Is the franchisee prohibited from operating its own website or social media accounts, or required to use pages the franchisor provides?
YesItem 5
Unless we have otherwise approved in writing, you agree to neither establish nor permit any other party to establish a Digital Site relating in any manner whatsoever to the Franchised Business or referring to the Proprietary Marks.
Is a minimum grand opening advertising spend required?
YesItem 5
you agree to spend at least Twenty-Five Thousand Dollars ($25,000) for grand opening marketing and promotional programs in conjunction with the Franchised Business’s initial grand opening
Is the franchisee required to spend a minimum amount on local advertising or marketing, as a percentage of sales or a fixed amount?
YesItem 5
For each Week during the term of this Agreement, you agree to contribute or spend an amount equal to three percent (3%) of your Franchised Business’ Gross Sales during the preceding Week (the “Marketing Contribution”), allocated as provided in Section 13.1.2 below.
Must the franchisee participate in a customer loyalty or rewards program?
YesItem 5
You agree to offer for sale, participate in, and honor for purchases by customers, all gift cards and other incentive or convenience programs that we may periodically institute (including loyalty programs that we or a third party vendor operate, as well as mobile apps, mobile payment, and/or other customer affinity…
Must the franchisee participate in a regional advertising cooperative when one exists?
YesItem 5
If a Regional Fund for the geographic area in which the Franchised Business is located has been established at the time you commence operations under this Agreement, then you must immediately become a member of such Regional Fund.
Operations
Must the franchisee buy products from a designated distributor?
YesItem 5
You must buy all Products, equipment, ingredients, supplies, materials, and other products used or offered for sale at the Franchised Business only from suppliers (including manufacturers, distributors, and other sources) that we have approved in writing.
Must equipment be purchased from designated or approved suppliers?
YesItem 5
We are the only designated supplier for certain items (such as signs, sauce, seasoning, batter mix, and uniforms) that you must buy for the operation of your Franchised Business.
Payments
Must the franchisee use a payment processor or merchant-services provider designated or approved by the franchisor?
YesItem 5
12.4.3 You agree not to use any Credit Card Vendor for which we have not given you our prior written approval or as to which we have revoked our earlier approval.
Are royalties and other fees collected by automatic bank debit (ACH or electronic funds transfer) from the franchisee's account?
YesItem 5
You must pay us your Royalty Fee payment (and all payments required under Section 13 below), by ACH (as specified below), by five [5] pm (local time at our offices) on Monday of each Week (the “Due Date”), based on your Gross Sales during the previous Week.
Must the franchisee participate in a gift card program?
YesItem 5
You agree to offer for sale, participate in, and honor for purchases by customers, all gift cards and other incentive or convenience programs that we may periodically institute
People
Does the franchisor require minimum staffing levels or specific roles?
YesItem 5
You must employ two full-time General Managers (“General Managers”), who will assume responsibility for the daily operation of the Franchised Business, alongside the Operating Owner.
Must employees wear uniforms specified by the franchisor?
YesItem 5
We are the only designated supplier for certain items (such as signs, sauce, seasoning, batter mix, and uniforms) that you must buy for the operation of your Franchised Business.
Point of sale
Must the franchisee use a specific point-of-sale system designated or approved by the franchisor?
YesItem 5
You agree to record all sales on integrated computer-based point of sale systems we approve or on such other types of cash registers and other devices (such as iPads, touch screens, printers, bar code readers, card readers, cash drawers, battery back-up, etc.) that we may designate in the Brand Manual or otherwise in…
Does the franchisor have independent access to the data in the franchisee's POS or computer system?
YesItem 5
We will have the independent right (without limit under the Franchise Agreement) at any time to retrieve and use this data and information from your Computer System in any manner we deem necessary or desirable.
Training
Can the franchisor charge the franchisee for additional, refresher or remedial training?
YesItem 5
We may require that you and your Operating Owner, General Managers and Additional Trained Personnel attend such refresher courses, new product launches, seminars, and other training programs as we may reasonably require periodically.
Is attendance at an annual convention or conference mandatory for the franchisee?
YesItem 5
You agree to attend the conventions and meetings that we may periodically require and to pay a reasonable fee (if we charge a fee) for each person who is required to attend
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
- 41.9% of quick service brands mandate no POS system, leaving a massive blind spot in your target list.By instantly identifying the 452 brands with no POS mandate, you replace weeks of manual FDD research and focus your pipeline on high-fit displacement targets, cutting customer acquisition cost by over 60%.
- 82.3% of brands mandate no accounting system, signaling a wide-open market for tech vendors.FranCloud surfaces the 888 brands without an accounting mandate so your team can prioritize outreach before competitors even know they exist, turning a manual research cost center into a predictable revenue engine.
- 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 Falafel
Falafel is a quick-service restaurant brand with a minimal physical footprint. According to the 2026 Franchise Disclosure Document, the system consists of exactly 1 franchised unit, located in Minnesota. There are no company-owned stores, and no multi-unit operators appear in the operator footprint data. For software vendors, this is not a volume play—it is a single-account opportunity. The total addressable market is 1 location, and any sale will depend entirely on engaging that individual franchisee or owner-operator.
The brand operates in the quick-service restaurant segment, but key financial performance metrics—such as average unit volume, royalty rates, and initial franchise term—are not disclosed in the most recent FDD. Year-over-year unit growth is also not available. This lack of public data means vendors must rely on direct discovery conversations to size the opportunity and understand the operator's willingness to invest in technology.
Who controls software purchasing
The 2026 FDD does not list any HQ executives in Item 1. No parent company is on file, and the brand appears to be independently owned. With only 1 mapped operator and zero multi-unit franchisees, the buying center is effectively a single person. There is no evidence of a centralized IT or procurement function. Vendors should assume that the individual franchisee holds full decision-making authority over software purchases, from POS to back-office systems.
This structure simplifies the sales process but also concentrates risk. The operator's budget, technical sophistication, and willingness to adopt new tools will dictate whether a deal closes. There are no franchisor mandates to drive top-down adoption, so the value proposition must resonate at the unit level.
Mandated and current tech stack
Falafel's 2026 FDD contains no disclosures of mandated or recommended technology systems. Item 11, which typically lists required POS, accounting, inventory, or scheduling platforms, is silent. This means the existing tech stack—if any—is chosen entirely at the operator's discretion. For vendors, this represents a blank slate. There is no incumbent to displace by franchisor decree, but also no system-wide standard to leverage for referrals or integrations.
Without a mandated stack, the sales conversation should focus on the operator's current pain points. Are they using a consumer-grade POS? Managing inventory manually? Lacking online ordering? The absence of franchisor-imposed technology means the operator may be underserved or using ad hoc solutions, creating an opening for vendors who can demonstrate clear ROI at a single location.
Procurement, renewals, and timing
Item 8 of the FDD, which covers procurement restrictions and designated suppliers, provides no extract. This suggests that Falafel does not impose a formal procurement model on its franchisee—or at least does not disclose one. The operator is likely free to source software from any vendor without franchisor approval. This reduces legal friction but also removes any franchisor-driven urgency to buy.
Contract renewal windows are similarly opaque. Item 17, which outlines renewal terms and conditions, yields no extract. The initial franchise term is not disclosed. Without a defined term length or renewal cycle, there is no predictable trigger for software evaluation. Vendors should approach this as an always-on prospecting effort, building a relationship with the operator and being ready to engage when a need arises.
How to read the Falafel FDD
The full 2026 Franchise Disclosure Document is embedded below for your review. This legal filing contains the most authoritative public information about Falafel's franchise system, including the franchise agreement, fee schedule, and any operational mandates. Pay particular attention to Items 1, 8, 11, and 17 for insights into decision-makers, procurement rules, technology requirements, and contract renewal terms. In this case, many of those items are silent, which is itself a data point: Falafel operates with minimal franchisor infrastructure, and the single franchisee likely controls all technology decisions. For a ranked target list of franchise systems that match your software's ideal customer profile, connect with FranCloud.
Questions vendors ask
Falafel, answered from the filing
No HQ executives are listed in the 2026 FDD. With only 1 mapped unit and zero multi-unit operators, purchasing decisions likely sit with the individual franchisee or owner-operator.
The 2026 FDD does not disclose any mandated or recommended POS, operational, or IT systems. Vendors should assume a greenfield environment and be prepared to sell to a single-unit operator.
The 2026 FDD maps 1 total unit, all franchised, with no company-owned locations. The sole unit is in Minnesota. This is a very small, early-stage franchise system.
Item 8 of the 2026 FDD provides no extract regarding designated or approved suppliers. The procurement model is not publicly disclosed, leaving vendor engagement terms undefined.
No renewal or term data is disclosed in the 2026 FDD. With only 1 unit, contract windows are unpredictable and likely tied to the single operator's business cycle rather than a franchisor calendar.
The 2026 FDD was filed with state franchise regulators. You can review the embedded PDF viewer below for the full legal document, including Items 1, 8, 11, and 17.
Source
Read the filing itself
Every number on this page traces back to this document. Read it in full, page by page. Buy the original PDF to download, search, and annotate it.
View only A one-time purchase: the original filing, yours to keep.
FDD alert
Tell me when this brand refiles.
We’ll email you the moment Falafel files a new annual FDD, usually the freshest signal of a vendor change.
Operator footprint
Who runs the locations
1 operators run 1 mapped locations. 0 of them are multi-unit. Aggregate counts from the filing; no names.
Operators by units owned
Single-unit1
Top states by locations
| MN | 1 |
|---|
Related Quick service restaurant brands
Primary franchise filings · updated June 2026. Every figure is source-traceable and QA-checked.