LunchboxLunchbox
Mandatorygs. Note 9-Computer Hardware, Software, and POS System: You must use our designated computer hardware, software, and POS system to handle customer transactions. You must integrate LunchBox with your P
From the filings
+6.667% units YoYHQ-led decisions
Hurts Donut Company
Quick service restaurantSoftware purchasing at Hurts Donut Company is controlled at the headquarters level, where the franchisor mandates a specific, modern tech stack across its 18-unit system. The chain already uses Lunchbox for online ordering, Square for POS and registers, Raydiant for menu boards, and When I Work for scheduling. With 16 franchised locations and a 6.7% year-over-year unit growth rate, the addressable market is small but expanding, and any vendor pitch must account for an existing, tightly prescribed technology environment.
For software vendors selling into US franchise brands.
Live signals
Total units
18
16 franchised
Unit growth YoY
+6.667%
vs prior filing
AUV
—
Item 19, 2026
Royalty
7%
of gross sales
Ad fund
2%
national + local
Initial fee
$35K
per unit
Investment range
$504K–$825K
all-in, Item 7
Procurement
Approved supplier
from the filing
Non-compete
2 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.
9%of gross sales (FY2026)
15% reference
Mandated & recommended tech
The systems vendors compete with
4 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.
RaydiantRaydiant
Mandatorynd pay for a monthly subscription. Initial purchases will range from $0-1500, and the monthly subscription is currently $500. Raydiant: You must purchase digital menu screens from Raydiant Menu Boards
SquareBlock
Mandatoryle system currently required is Square. Square charges a fee of 2.4% for all swiped credit transactions and 3.75% for all keyed credit transactions. Also currently required are: • Square Registers • 3
When I WorkWhen I Work
Mandatoryre: At present, we recommend that you purchase and maintain a license to the Jolt software platform for $99.99/month per location. You must purchase and maintain a license for the When I Work scheduli
FacebookMeta
our and other HDC Stores. (Franchise Agreement § 6.10) You agree to participate in all general marketing programs, including but not limited to gift card programs, email programs, Facebook promotions
InstagramMeta
Social Media. You are prohibited from establishing a website or any social media presence like Facebook. However, you will have a page on HDC’s website. Also, a Facebook page and Instagram page will b
Franchisor behaviours
What the franchisor requires
22 requirements the franchisor states in this filing, each in its own words; 5 explicit no's; 7 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 8
We require you to use such computer hardware, software, POS systems and Digital Menu Displays as we specify, which may include vendor designations.
Does the franchisor have direct or independent electronic access to the franchisee's financial, sales or customer records?
YesItem 11
You must at all times give us unrestricted and independent electronic access to your computer systems and information.
Must the franchisee submit periodic financial statements (monthly, quarterly or annual) to the franchisor?
YesFranchise agreement
On or before the twentieth (20th) day of each month, you must submit monthly financial reports on the income and expenses of the HURTS DONUT COMPANY Store in the format specified in the Confidential Operations Manual.
How the franchisor buys
Is the franchisor or an affiliate itself a supplier of required products, services or systems?
YesItem 8
We are an approved supplier of advertising material merchandise offerings other than T-shirts, and display cases.
Does the franchisor reserve the right to change designated suppliers or systems at any time?
YesFranchise agreement
We may implement and periodically modify system standards relating to the System website or System social media pages and, at our option, may discontinue or modify the System website, or may discontinue, modify or add System social media pages, at any time.
How much revenue did the franchisor and its affiliates earn from franchisee purchases in the last fiscal year?
16988.25Item 8
In our last fiscal year, which ended December 31, 2025, we earned $16,988.25 in revenue from required purchases or leases by franchisees (for display cases and merchandise offerings) and $218,270 in rebates, representing 15.37% of our total revenue of 1,530,891.
Does the franchisor or an affiliate receive rebates, commissions or other revenue from designated or approved suppliers?
YesItem 8
Designated suppliers may make payments to us from franchisee purchases.
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?
30Item 8
approximately 30-50% of your operating costs.
Can a franchisee propose a new supplier for the franchisor's approval?
YesItem 8
If you wish to propose to us another supplier, you may submit the proposed supplier that you wish for us to consider in writing.
Communications
Does the franchisor own or control the business telephone numbers, or take them over when the agreement ends?
YesFranchise agreement
Franchisee hereby irrevocably assigns to Franchisor all listings associated with the Hurts Donut franchise, including all telephone numbers, telephone listings, email addresses, domain names, social media accounts, Internet listings, websites, and comparable electronic identities used in connection with the Marks or…
Franchise management
Does the franchisor conduct periodic inspections, audits or evaluations of the franchised business?
YesFranchise agreement
HDC may conduct inspections of your HURTS DONUT COMPANY Store during normal business hours.
Can the franchisor change the operations manual and brand standards unilaterally?
YesItem 8
We issue and modify specifications and standards to franchisees or approved suppliers through our Operations Manual or through informational bulletins we issue from time to time.
Must the franchisor approve the franchisee's site or location before opening?
YesItem 11
Our prior acceptance of the proposed site must be obtained in writing.
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 are prohibited from establishing a website or any social media presence like Facebook.
Must the franchisee participate in a customer loyalty or rewards program?
YesItem 11
(Franchise Agreement § 6.10) You agree to participate in all general marketing programs, including but not limited to gift card programs, email programs, Facebook promotions and all cross-promotional programs HDC is successful in negotiating.
Operations
Must equipment be purchased from designated or approved suppliers?
YesItem 8
Equipment, Smallwares, and Furniture. You must purchase equipment, smallwares, and furniture from a supplier that we designate or subject to our specifications.
Payments
Are royalties and other fees collected by automatic bank debit (ACH or electronic funds transfer) from the franchisee's account?
YesItem 6
We require you to execute an Automatic Bank Draft Authorization and pay most fees to us via ACH electronic funds transfer.
Must the franchisee participate in a gift card program?
YesItem 11
You agree to participate in all general marketing programs, including but not limited to gift card programs, email programs, Facebook promotions and all cross-promotional programs HDC is successful in negotiating.
People
Does the franchisor require minimum staffing levels or specific roles?
YesItem 15
You must maintain at all times a staff of trained employees sufficient to operate the HDC Store in compliance with our standards.
Point of sale
Must the franchisee use a specific point-of-sale system designated or approved by the franchisor?
YesItem 11
Point of Sale: You must purchase a point of sale ("POS") system which meet our specifications.
Does the franchisor have independent access to the data in the franchisee's POS or computer system?
YesItem 11
We have and you are required to provide independent access to the information that will be generated or stored in your computer 24 systems, which includes, but not limited to, customer, transaction, and operational information.
Training
Can the franchisor charge the franchisee for additional, refresher or remedial training?
YesItem 11
We may offer continuing education programs on matters related to the operation or promotion of the HDC Store on an optional or mandatory basis, as it considers appropriate.
The filing answers no to 5 questions
- Is there a franchisee advisory council, association or committee?Item 20
- Does the franchisor charge a fee to evaluate a proposed supplier?Item 8
- Is a minimum grand opening advertising spend required?Item 11
- Is the franchisee required to spend a minimum amount on local advertising or marketing, as a percentage of sales or a fixed amount?Item 11
- 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 Hurts Donut Company
Hurts Donut Company is a quick-service restaurant concept headquartered in Missouri with 18 total units, 16 of which are franchised. The system grew at 6.7% year-over-year, adding units slowly but steadily. For a software vendor, the immediate addressable market is those 16 franchised locations—the two company-owned units may follow HQ mandates but represent a separate buying dynamic. The chain does not disclose average unit volume in its 2026 FDD, so sizing the opportunity by revenue per location requires external estimates. Royalty is 7.0%, and the initial franchise term is five years.
The chain’s tech stack is already defined by headquarters. This is not a system where individual franchisees shop for POS or scheduling tools on their own. The franchisor mandates Lunchbox for online ordering, Square by Block, Inc. for point-of-sale and registers, Raydiant for digital menu boards, and When I Work for employee scheduling. A vendor selling into Hurts Donut must either displace one of these mandated systems or complement them with an integration that HQ will endorse system-wide.
Who controls software purchasing
The 2026 FDD identifies three principal officers: Timothy Clegg, Chief Executive Officer; Kasondra Clegg, Chief Marketing Officer; and Scott Bussard, Chief Financial Officer. No dedicated CIO or VP of Technology is listed. In a system this size, the CEO and CFO are the most likely decision-makers for any software that touches operations, payments, or financial reporting. The CMO may influence customer-facing technology, particularly anything that affects the online ordering flow already handled by Lunchbox. A vendor pitch should be prepared to address the CEO or CFO directly, with a clear ROI case that respects the existing mandated stack.
Mandated and current tech stack
The FDD is explicit: franchisees must use Lunchbox, Square POS and Square Registers, Raydiant Menu Boards, and When I Work. This is a modern, cloud-based stack covering online ordering, in-store transactions, digital signage, and labor management. There is no mention of an open API policy or approved vendor list beyond these named systems. Any software vendor approaching Hurts Donut should assume that HQ will evaluate new tools against these incumbents and will require a compelling reason to add or switch. Integration with Square and Lunchbox is likely table stakes.
Procurement, renewals, and timing
Item 8 of the FDD—the procurement section—was not extracted in the available data, so the formal purchasing model remains unknown. It is unclear whether Hurts Donut designates specific suppliers, maintains an approved supplier list, or allows franchisees some discretion. In practice, the mandated tech list suggests a top-down approach. Franchise agreements run five years, and renewal requires 120 days’ notice, signing a new agreement, remodeling, signing a release, and entering into a lease. Critically, the renewal franchise agreement “may contain materially different terms and conditions,” which could include updated technology requirements. This creates a natural window for vendors to engage HQ as renewal cycles approach or as new units are added.
How to read the Hurts Donut Company FDD
The full 2026 Franchise Disclosure Document is embedded below. It contains the legal and operational detail behind the summary on this page—Item 1 lists the executives, Item 11 details the mandated technology, and Item 17 outlines renewal conditions. For a software vendor, the FDD is the most reliable source of truth on who buys, what they require, and when contracts turn over. Review it before building a pitch. When you are ready to prioritize franchise systems by tech fit, decision-maker access, and growth trajectory, FranCloud can provide a ranked target list built on FDD data like this.
Questions vendors ask
Hurts Donut Company, answered from the filing
The FDD lists Timothy Clegg (CEO), Kasondra Clegg (CMO), and Scott Bussard (CFO) as principal officers. Technology mandates suggest the C-suite, likely the CEO or CFO, controls software procurement centrally.
The 2026 FDD mandates Square by Block, Inc. for POS and registers, Lunchbox for online ordering, Raydiant for menu boards, and When I Work for scheduling. These are required systems for franchisees.
The system has 18 total units: 16 franchised and 2 company-owned. It operates in the quick-service restaurant segment with 6.7% year-over-year unit growth.
The most recent FDD does not include an Item 8 procurement extract. The procurement model—whether designated supplier, approved supplier, or open—is not disclosed in the available data.
Franchise agreements run 5 years. Renewal requires 120 days’ notice, a new agreement, and possible materially different terms. Contract windows may align with these renewal cycles or new unit openings.
The FDD is filed with state franchise regulators in 2026. You can review the full document using the embedded PDF viewer below this section.
Source
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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
| TX | 1 |
|---|---|
| WI | 1 |
Related Quick service restaurant brands
Primary franchise filings · updated June 2026. Every figure is source-traceable and QA-checked.