Must the franchisee use an accounting or bookkeeping system designated or approved by the franchisor?
YesItem 11
You must purchase from an Approved Supplier and use the POS System designated by us in your Shop.
From the filings
HQ-led decisions
Federal Donuts & Chicken
Quick service restaurantSoftware purchasing decisions at Federal Donuts & Chicken are controlled by a tight-knit HQ team led by CEO Jeff Benjamin and Director of Operations Braden Alsnauer. The brand currently mandates a Gift Card system and a Loyalty Program, with no other named tech vendors disclosed in the 2025 FDD. The addressable market is small but premium: 12 total units (7 franchised, 5 company-owned) generating an average unit volume of $1,007,131.
For software vendors selling into US franchise brands.
Live signals
Total units
12
7 franchised
Unit growth YoY
—
vs prior filing
AUV
$1.01M
Item 19, 2024
Royalty
6%
of gross sales
Ad fund
1%
national + local
Initial fee
—
per unit
Investment range
$526K–$675K
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.
7%of gross sales (FY2025)
15% reference
Franchisor behaviours
What the franchisor requires
25 requirements the franchisor states in this filing, each in its own words; 2 explicit no's; 7 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?
YesFranchise agreement
Franchisee shall use the POS software to collect all of the sales, inventory, and financial data of the Shop which will provide Franchisor independent access to the information collected through the POS system.
Must the franchisee submit periodic financial statements (monthly, quarterly or annual) to the franchisor?
YesFranchise agreement
Franchisee agrees to submit within ninety (90) days following the close of each fiscal year of the Shop’s operation, a profit and loss statement covering operations during such fiscal year and a balance sheet taken as of the close of such fiscal year, all prepared in accordance with generally accepted accounting
How the franchisor buys
Is the franchisor or an affiliate itself a supplier of required products, services or systems?
YesItem 8
if a commissary exists in your geographical area, our affiliate would be the sole supplier for certain items such as fancy donuts to your Shop.
Does the franchisor reserve the right to change designated suppliers or systems at any time?
YesItem 11
5. We will modify the System as we deem necessary, including, but not limited to, the adoption and use of new or modified menu items, recipes, techniques, supplies, equipment, products, trade names, trademarks, service marks, copyrighted materials, and information technology tools, and we will communicate to you any…
How much revenue did the franchisor and its affiliates earn from franchisee purchases in the last fiscal year?
0Item 8
In our fiscal year ending December 31, 2024, neither we nor our affiliates derived any revenue from these Approved Suppliers.
Does the franchisor or an affiliate receive rebates, commissions or other revenue from designated or approved suppliers?
YesItem 8
We may receive rebates from Approved Suppliers.
Does the franchisor charge a fee to evaluate a proposed supplier?
YesFranchise agreement
If Franchisee proposes to use any supplies or supplier which is not then approved, Franchisee must pay an evaluation fee of its costs incurred and notify Franchisor in writing and submit sufficient information, samples, and specifications to allow Franchisor to determine if the supplier meets the Franchisor approved…
Can a franchisee propose a new supplier for the franchisor's approval?
YesFranchise agreement
If Franchisee proposes to use any supplies or supplier which is not then approved, Franchisee must pay an evaluation fee of its costs incurred and notify Franchisor in writing and submit sufficient information, samples, and specifications to allow Franchisor to determine if the supplier meets the Franchisor approved…
Communications
Does the franchisor own or control the business telephone numbers, or take them over when the agreement ends?
YesFranchise agreement
notify the telephone company and all listing agencies of the termination or expiration of the Agreement and of Franchisee’s right to use the existing Shop telephone number(s) and any regular, classified or other telephone directory listing associated with any Intellectual Property, and authorize transfer of same to…
Data and IT
Must the franchisee comply with PCI, data-security or cybersecurity standards set by the franchisor?
YesItem 11
You are required to maintain your credit card processing hardware and software in compliance with the Payment Card Industry (PCI) Data Security Standard.
Franchise management
Does the franchisor conduct periodic inspections, audits or evaluations of the franchised business?
YesFranchise agreement
Franchisor shall have the right to inspect the Shop at all reasonable times to ensure that Franchisee’s operation thereof is in compliance with the Standards of the System.
Can the franchisor change the operations manual and brand standards unilaterally?
YesItem 16
There are no limitations on our rights to modify the System.
Must the franchisor approve the franchisee's site or location before opening?
YesItem 12
You will be granted the right to own and operate a Shop at a specific site approved by us.
Marketing
Is a minimum grand opening advertising spend required?
YesItem 7
You are required to expend between $10,000 and $15,000 during the period between 60 days prior to opening the Shop and 90 days after opening the Shop in an effort to market, promote and advertise the Shop.
Must the franchisee participate in a customer loyalty or rewards program?
YesItem 8
We require franchisees to offer customers the ability to join our system-wide loyalty program (“Loyalty Program”), where the customers can earn points to use for free drinks at any location, regardless of which Shop they made the purchases that earned the points.
Operations
Must the franchisee buy products from a designated distributor?
YesFranchise agreement
all food, beverages, supplies, equipment, merchandise, uniforms, goods, fixtures, inventory, paper products, packaging, and other items used, served, or sold in the Shop shall be purchased from only those suppliers and sources designated or approved by Franchisor.
Must equipment be purchased from designated or approved suppliers?
YesFranchise agreement
all food, beverages, supplies, equipment, merchandise, uniforms, goods, fixtures, inventory, paper products, packaging, and other items used, served, or sold in the Shop shall be purchased from only those suppliers and sources designated or approved by Franchisor.
Payments
Are royalties and other fees collected by automatic bank debit (ACH or electronic funds transfer) from the franchisee's account?
YesFranchise agreement
Franchisor requires payment of Royalties by making direct weekly withdrawals in the form of an electronic or similar funds transfer in the appropriate amount(s) from Franchisee’s bank account.
Must the franchisee participate in a gift card program?
YesItem 8
We require franchisees to offer customers the ability to buy and make purchases with gift cards, using a specified system (the “Gift Card System”), which can be integrated with the POS System.
People
Does the franchisor require minimum staffing levels or specific roles?
YesFranchise agreement
The Shop shall at all times be under the direct on-premises supervision of Franchisee, the Owner-Operator, or an approved Manager who has satisfactorily completed the Initial Training program.
Must employees wear uniforms specified by the franchisor?
YesItem 8
Franchisees are currently required to purchase all proteins, donut batter and other inventory from Approved Suppliers that are co-packers.
Point of sale
Must the franchisee use a specific point-of-sale system designated or approved by the franchisor?
YesItem 11
You must purchase from an Approved Supplier and use the POS System designated by us in your Shop.
Does the franchisor have independent access to the data in the franchisee's POS or computer system?
YesFranchise agreement
Franchisee shall use the POS software to collect all of the sales, inventory, and financial data of the Shop which will provide Franchisor independent access to the information collected through the POS system.
Training
Can the franchisor charge the franchisee for additional, refresher or remedial training?
YesFranchise agreement
Franchisor will not charge a tuition fee for Subsequent Training unless Franchisor requires them due to Franchisee’s default of this Agreement.
The filing answers no to 2 questions
- Is the franchisee required to spend a minimum amount on local advertising or marketing, as a percentage of sales or a fixed amount?Franchise agreement
- 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 franchisee/operator personally, or a small franchisor still owner-run. Wears every hat.
OwnerCEOPresidentPrincipal
- 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%.
- 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.
- 97.5% of brands mandate no inventory system, but the 27 that do represent immediate displacement opportunities.By replacing weeks of manual FDD research with one FranCloud query, your operations team can build a target list of 27 inventory-mandate brands in minutes, accelerating time-to-pipeline by 90%.
The vendor opportunity at Federal Donuts
Federal Donuts & Chicken is a quick-service restaurant concept headquartered in Pennsylvania with a deliberately small footprint of 12 total units—7 franchised and 5 company-owned. For software vendors, the immediate addressable market is limited, but the unit economics are compelling: average unit volume sits at $1,007,131, and the brand collects a 6.0% royalty on a 10-year initial term. The operator base is concentrated, with just 2 mapped operators running a single unit each, located in Michigan and California. No multi-unit operators are on file, meaning every franchisee relationship is a one-to-one sale. The brand appears independently owned with no parent company disclosed in the FDD.
Who controls software purchasing
Purchasing authority is centralized at HQ. The 2025 FDD lists Jeff Benjamin as Chief Executive Officer and Braden Alsnauer as Director of Operations. Founders Michael Solomonov and Steven Cook, along with Chief Development Officer Eric Lavinder, round out the leadership team. For a vendor selling operational or in-store technology, Benjamin and Alsnauer are the most logical entry points. The brand mandates specific technology categories, which signals that HQ—not individual franchisees—drives software selection and compliance. There is no CIO or CTO on file, so the buying center likely involves operations leadership making technology decisions directly.
Mandated and current tech stack
The FDD is explicit about two mandated systems: a Gift Card system and a Loyalty Program. No specific vendor names are attached to these mandates in the disclosure, and no POS, back-office, or online ordering platforms are listed as required or recommended. This gap suggests that either those systems are left to franchisee discretion or that the franchisor has not formalized additional mandates as of the 2025 filing. For vendors selling into the loyalty or stored-value space, the mandate creates a captive opportunity—if you can displace or integrate with the incumbent. For everyone else, the tech landscape is largely undefined in the public record, which means discovery calls with HQ are essential to map the actual stack.
Procurement, renewals, and timing
Item 8 of the FDD, which typically outlines designated suppliers and purchasing restrictions, was not extracted in the available data. Without that signal, the procurement model remains opaque. Vendors should assume a need to sell directly to HQ and confirm whether an approved-supplier program exists. On the renewal side, Item 17 provides concrete timing triggers. Franchise agreements run for an initial 10 years and can be renewed for successive 5-year terms. Renewal is conditional: the franchisee must sign the then-current agreement—which may have materially different terms—and complete any required remodeling, including equipment updates. These remodeling and re-equipping clauses are natural inflection points where software and hardware vendors can position upgrades or replacements.
How to read the Federal Donuts FDD
The full 2025 Franchise Disclosure Document is embedded below. For software vendors, the highest-value sections are Item 11 (Franchisor's Obligations), where the mandated Gift Card and Loyalty systems are disclosed, and Item 17 (Renewal, Termination, Transfer), which spells out the remodel and re-equip conditions that can trigger technology re-evaluations. The operator footprint data shows a brand in a very early stage of franchising, with no year-over-year unit growth disclosed and a unit-band split that confirms all operators run between 1 and 2 locations. This is a small, high-AUV target where every unit counts. For a ranked list of franchise brands that match your software's ideal customer profile, FranCloud can help.
Questions vendors ask
Federal Donuts & Chicken, answered from the filing
The buying center is small. CEO Jeff Benjamin and Director of Operations Braden Alsnauer are the most likely decision-makers for operational and in-store technology, given the brand's centralized, HQ-driven mandate structure.
The 2025 FDD mandates a Gift Card system and a Loyalty Program. No specific POS, back-office, or online ordering vendors are named, suggesting these systems may be open or selected at the franchisee level.
There are 12 total units: 7 franchised and 5 company-owned. The operator footprint is tiny, with just 2 mapped operators running 1 unit each in Michigan and California.
The FDD does not include an Item 8 procurement extract, so the designated vs. approved supplier model is not publicly disclosed. Vendors should clarify purchasing rules directly with HQ.
Initial franchise terms are 10 years, with 5-year renewal terms. Renewals require signing the then-current agreement and completing any mandated remodeling or equipment updates, creating potential re-evaluation windows for tech vendors.
The 2025 FDD was filed with state franchise regulators. You can review the full document in the embedded PDF viewer below to analyze Item 11 tech mandates and Item 17 renewal conditions directly.
Source
Read the filing itself
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FDD alert
Tell me when this brand refiles.
We’ll email you the moment Federal Donuts & Chicken files a new annual FDD, usually the freshest signal of a vendor change.
Operator footprint
Who runs the locations
2 operators run 2 mapped locations. 0 of them are multi-unit. Aggregate counts from the filing; no names.
Operators by units owned
Single-unit2
Top states by locations
| MI | 1 |
|---|---|
| CA | 1 |
Ownership
The portfolio behind Federal Donuts & Chicken
unknown of tsrfd.
Related Quick service restaurant brands
Primary franchise filings · updated June 2026. Every figure is source-traceable and QA-checked.