MailchimpIntuit
Mandatoryecify in the Operations Manual and pay any subscription or access fees associated with them. The current required software and applications are Sawyer, Jotform and/or Mighty Form, Mailchimp, Stripe an
From the filings
HQ-led decisions
Honest Art
Youth servicesSoftware purchasing at Honest Art is controlled at the HQ level by the co-founders and studio manager. The brand operates a single company-owned unit in New Jersey, with no franchised locations yet, making this a small but direct addressable market. No mandated technology stack is disclosed in the 2025 FDD, leaving the tech landscape open for vendors who can reach the decision-makers directly.
For software vendors selling into US franchise brands.
Live signals
Total units
1
0 franchised
Unit growth YoY
—
vs prior filing
AUV
—
Item 19, 2025
Royalty
8%
of gross sales
Ad fund
1%
national + local
Initial fee
$25K
per unit
Investment range
$133K–$267K
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.
9%of gross sales (FY2025)
15% reference
Mandated & recommended tech
The systems vendors compete with
3 of these are mandated in the franchise agreement. Each is named in Item 11 of the filing, the incumbents a challenger must displace or integrate with.
SawyerSawyer
Mandatorysoftware and applications that we specify in the Operations Manual and pay any subscription or access fees associated with them. The current required software and applications are Sawyer, Jotform and/
StripeStripe
Mandatorye Operations Manual and pay any subscription or access fees associated with them. The current required software and applications are Sawyer, Jotform and/or Mighty Form, Mailchimp, Stripe and Clover PO
FacebookMeta
u must furnish us with a quarterly report and documentation of local advertising expenditures during the previous calendar quarter. You may not use social media platforms, such as Facebook, X, Instagr
InstagramMeta
ible, you may do cooperative advertising with other Honest Art franchisees in your area, with our prior written approval. You may not maintain any business profile on Facebook, X, Instagram, LinkedIn,
LinkedInLinkedIn
ay do cooperative advertising with other Honest Art franchisees in your area, with our prior written approval. You may not maintain any business profile on Facebook, X, Instagram, LinkedIn, YouTube or
YouTubeGoogle
erative advertising with other Honest Art franchisees in your area, with our prior written approval. You may not maintain any business profile on Facebook, X, Instagram, LinkedIn, YouTube or any other
Franchisor behaviours
What the franchisor requires
24 requirements the franchisor states in this filing, each in its own words; 4 explicit no's; 6 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 6
During the first 2 years of the term of your franchise agreement, you are required to use an accounting firm designated by us.
Does the franchisor have direct or independent electronic access to the franchisee's financial, sales or customer records?
YesItem 11
The POS System allows us to independently and remotely access all of your sales data, including your Gross Revenue, through the Internet.
Must the franchisee submit periodic financial statements (monthly, quarterly or annual) to the franchisor?
YesFranchise agreement
Within fifteen (15) days after the close of each calendar quarter and within ninety (90) days after the close of each fiscal year, Franchisee will furnish Franchisor a full and complete written statement of income and expense and a profit and loss statement for the operation of the Franchised Business during said…
How the franchisor buys
Does the franchisor reserve the right to change designated suppliers or systems at any time?
YesFranchise agreement
Franchisee shall make any and all upgrades to equipment, including but not limited to, design, display and storage equipment, POS Systems, and computer hardware and software, and any technology used in conjunction therewith, as Franchisor requires in its sole and absolute discretion.
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?
60Item 8
approximately 60-70% of your costs for ongoing operation
Does the franchisor charge a fee to evaluate a proposed supplier?
YesItem 8
Along with your written request that we approve a proposed item or supplier, you must pay an Evaluation Fee of One Thousand Dollars ($1,000), to offset our cost for time, review and testing.
Can a franchisee propose a new supplier for the franchisor's approval?
YesItem 8
If you would like us to consider another item or supplier, you must make such request in writing to us and have the supplier give us samples of its product or service and such other information that we may require.
Communications
Does the franchisor own or control the business telephone numbers, or take them over when the agreement ends?
YesFranchise agreement
Upon the expiration or termination 17 Honest Art Franchise Agreement 2025 i of this Agreement, Franchisor may exercise its authority, pursuant to such documents, to obtain any and all of Franchisee’s rights to the telephone numbers of the Franchised Business and all related telephone directory listings and other…
Franchise management
Does the franchisor conduct periodic inspections, audits or evaluations of the franchised business?
YesItem 11
conduct inspections of your Franchised Business, at the frequency and duration that we deem advisable.
Can the franchisor change the operations manual and brand standards unilaterally?
YesItem 17
Modification of the agreement Sections 9.4, 14.6, No oral modifications generally, but we 19.1.4 and 22.4 may change the Operations Manual and System standards at any time.
Must the franchisor approve the franchisee's site or location before opening?
YesFranchise agreement
No site may be used for the location of the Franchised Business unless it is consented to in writing by Franchisor.
Marketing
Is the franchisee prohibited from operating its own website or social media accounts, or required to use pages the franchisor provides?
YesFranchise agreement
Franchisee shall not establish any website or other listing on the Internet except as provided and specifically permitted herein.
Is a minimum grand opening advertising spend required?
YesItem 11
We require you to spend at least Two Thousand Five Hundred Dollars ($2,500) in grand opening advertising and promotional activities prior to and within the first thirty (30) days following the opening of your Franchised Business in your territory.
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
During the first year of your operations, you are required to spend at least Two Thousand Dollars ($2,000.00) per month on advertising for the Franchised Business in your territory.
Must the franchisee participate in a customer loyalty or rewards program?
YesFranchise agreement
Accept and honor all loyalty cards, promotional coupons, or other System-wide offers, on a uniform basis, as accepted by other franchisees in the System.
Must the franchisee participate in a regional advertising cooperative when one exists?
YesItem 11
If a cooperative is established during the term of your Franchise Agreement, you must sign all documents we request and become a member of the cooperative according to the terms of the documents.
Operations
Must the franchisee buy products from a designated distributor?
YesItem 8
You must purchase all equipment, fixtures, inventory, supplies and services from our designated or approved suppliers and contractors or in accordance with our specifications.
Must equipment be purchased from designated or approved suppliers?
YesItem 8
You must purchase all equipment, fixtures, inventory, supplies and services from our designated or approved suppliers and contractors or in accordance with our specifications.
Payments
Must the franchisee use a payment processor or merchant-services provider designated or approved by the franchisor?
YesItem 11
You must purchase and use the point-of-sale system (“POS System”) we specify, and have the latest versions of hardware, software and computer platforms to operate the POS System.
Are royalties and other fees collected by automatic bank debit (ACH or electronic funds transfer) from the franchisee's account?
YesFranchise agreement
Franchisee must execute documents, including but not limited to, the Authorization attached as Attachment 4, that allow Franchisor to automatically take the Royalty Fee and Brand Fund Contribution due as well as other sums due Franchisor, from business bank accounts or via electronic funds transfers or Automated…
Point of sale
Must the franchisee use a specific point-of-sale system designated or approved by the franchisor?
YesItem 11
You must purchase and use the point-of-sale system (“POS System”) we specify, and have the latest versions of hardware, software and computer platforms to operate the POS System.
Does the franchisor have independent access to the data in the franchisee's POS or computer system?
YesItem 11
The POS System allows us to independently and remotely access all of your sales data, including your Gross Revenue, through the Internet.
Training
Can the franchisor charge the franchisee for additional, refresher or remedial training?
YesItem 11
We reserve the right to impose a reasonable fee for tuition and/or attendance for all additional training programs, including the annual business meeting or conference.
Is attendance at an annual convention or conference mandatory for the franchisee?
YesFranchise agreement
Franchisee’s failure to attend and/or complete mandatory additional training or failure to attend Franchisor’s national business meeting or annual convention is a default of this Agreement.
The filing answers no to 4 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 11
- Does the franchisor or an affiliate receive rebates, commissions or other revenue from designated or approved suppliers?Item 8
- Does the franchisor require minimum staffing levels or specific roles?Item 11
The vendor opportunity at Honest Art
Honest Art is a youth-services concept headquartered in New Jersey, operating a single company-owned unit as of its 2025 Franchise Disclosure Document. For software vendors, the addressable market is exactly one location today. The brand has not yet sold any franchises, so the immediate opportunity is a direct sale into the corporate entity rather than a multi-unit franchise network.
The royalty rate is set at 8.0% of gross revenue, and the initial franchise term runs 10 years. Because no franchised units exist, there is no year-over-year unit growth to report. Vendors should view this as an early-stage relationship play: if Honest Art begins awarding franchises, the software decisions made now at HQ could become the de facto standard for future franchisees.
Who controls software purchasing
The 2025 FDD lists three individuals in Item 1: Co-Founder and CEO Gabriel Cruz, Co-Founder and Creative Director Liza Cruz, and Studio Manager Iviana Rexach. In a single-unit, founder-led organization, software purchasing authority almost certainly rests with Gabriel Cruz for operational and back-office tools, while Liza Cruz may drive decisions around creative or curriculum-related platforms. Iviana Rexach, as studio manager, likely handles day-to-day operational tools and could be the primary user-buyer for scheduling, billing, or CRM software.
There is no CIO, CTO, or dedicated IT procurement role named in the FDD. Vendors should prepare to engage the founders directly and demonstrate clear value to a small, hands-on leadership team.
Mandated and current tech stack
Honest Art’s 2025 FDD does not mandate or recommend any specific technology systems. No POS provider, scheduling platform, CRM, or accounting software is named in the document. This absence of a mandated tech stack means the brand is either using ad-hoc consumer-grade tools or has not yet standardized its technology for franchise replication.
For a vendor, this is both an opportunity and a challenge. There is no incumbent to displace, but there is also no established budget line or evaluation process for software. A pitch to Honest Art must start with education on the operational value of the tool, not just a feature comparison against a competitor.
Procurement, renewals, and timing
The FDD provides no Item 8 procurement extract, so the brand’s supplier qualification process—if any—is not publicly documented. This further supports the view that purchasing is informal and founder-driven.
On the renewal side, Item 17 outlines a successor agreement option: franchisees in good standing may renew for up to two additional terms of five years each, subject to a 10% successor fee based on the then-current initial franchise fee, execution of a general release, and compliance with updated training and standards. The franchisor also reserves the right to decline renewal if it withdraws from the geographic area. For software vendors, these renewal windows are not near-term events, but they signal that Honest Art envisions a long-term franchise relationship where technology standards could be refreshed at each renewal cycle.
How to read the Honest Art FDD
The full 2025 Honest Art Franchise Disclosure Document is available below. It contains the legal and operational disclosures that govern the franchise relationship, including the items referenced throughout this page. Reviewing the FDD directly is the best way to verify the information here and uncover additional details relevant to your software sales strategy.
For a ranked list of franchise brands that match your ideal customer profile, FranCloud can help you prioritize your outreach.
Questions vendors ask
Honest Art, answered from the filing
Co-Founder and CEO Gabriel Cruz and Co-Founder and Creative Director Liza Cruz are the named executives in the FDD. Studio Manager Iviana Rexach may also influence operational tool decisions.
The 2025 FDD does not list any mandated or recommended POS, scheduling, or operational technology systems for franchisees or the company-owned unit.
Honest Art has 1 total unit, which is company-owned. No franchised units are reported in the 2025 FDD, placing it at the very earliest stage of franchise expansion.
The 2025 FDD does not include an Item 8 procurement extract, so it is unclear whether Honest Art uses designated suppliers, an approved supplier list, or an open procurement model.
With a 10-year initial term and a successor option for two additional 5-year terms, renewal-driven evaluation windows are distant. The single-unit footprint means any software decision is likely ad-hoc and founder-driven.
The 2025 Honest Art FDD is filed with state franchise regulators. You can read the full document using the embedded PDF viewer below this section.
Source
Read the filing itself
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FDD alert
Tell me when this brand refiles.
We’ll email you the moment Honest Art files a new annual FDD, usually the freshest signal of a vendor change.
Operator footprint
No franchisee network yet. Honest Art’s latest FDD reports no franchised locations.
Related Youth services brands
Primary franchise filings · updated June 2026. Every figure is source-traceable and QA-checked.