From the filings
Software purchasing at Melt n Dip is likely controlled by CEO Saad M. Khattab or President Khalid Habbab, given the system's small 16-unit footprint and lack of mandated technology. The 2026 FDD reveals no required POS or operational systems, creating an open market for vendors. With 13 franchised and 3 company-owned locations across six states, the addressable market is limited but growing rapidly.
For software vendors selling into US franchise brands.
Live signals
Ongoing fee load
The recurring percentage of gross sales named in this filing, before rent, labour or any technology fee.
7%of gross sales (FY2026)
15% reference
Franchisor behaviours
27 requirements the franchisor states in this filing, each in its own words; 3 explicit no's; 4 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?
YesFranchise agreement
During the Term, Franchisee shall maintain and preserve complete and accurate books, records and accounts in accordance with U.S. Generally Accepted Accounting Principles and in the form and the manner prescribed by Franchisor from time to time in the Manual or otherwise in writing, which may include the use of…
Does the franchisor have direct or independent electronic access to the franchisee's financial, sales or customer records?
YesItem 11
We have the right to independently access your computer system to retrieve information regarding the operations of your Franchised Business and there are no limitations under the Franchise Agreement on our right to access.
Must the franchisee submit periodic financial statements (monthly, quarterly or annual) to the franchisor?
YesFranchise agreement
During the Term, Franchisee shall, at its expense, submit to Franchisor within ten (10) days following the end of each of each month, a statement providing certain sales and other financial data in a form and format as Franchisor may reasonably require together with a certificate executed by Franchisee or an officer…
How the franchisor buys
Is the franchisor or an affiliate itself a supplier of required products, services or systems?
YesItem 8
We are currently the only designated supplier for furniture, certain fixtures, indoor signage, food (except milk and fruit), paper goods, business management software, and report generation software.
Does the franchisor reserve the right to change designated suppliers or systems at any time?
YesFranchise agreement
Franchisor may from time to time modify the list of designated suppliers, list of approved suppliers and list of approved products, furniture, fixtures, signs, play equipment, and other equipment, materials and supplies, and Franchisee may not, after receiving written notice of modification of the lists, reorder any…
How much revenue did the franchisor and its affiliates earn from franchisee purchases in the last fiscal year?
6851903Item 8
In our fiscal year ended December 31, 2025, we derived $6,851,903 from purchases by franchisees, which constitutes 83.3% of our total revenues of $8,223,455.
Does the franchisor or an affiliate receive rebates, commissions or other revenue from designated or approved suppliers?
YesFranchise agreement
Franchisor reserves the right to receive rebates from any suppliers Franchisor has designated or approved.
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
The cost of all purchases from designated suppliers, approved suppliers or following our standards and specifications represents between 75% and 95% of your total purchases in establishing your franchise, and 75% and 95% of your total purchases in operating the franchise.
Does the franchisor charge a fee to evaluate a proposed supplier?
YesItem 8
Either you or the supplier must pay a charge not to exceed the actual cost of inspection and the actual cost of testing.
Can a franchisee propose a new supplier for the franchisor's approval?
YesItem 8
If you desire to purchase any such items from an unapproved supplier, you or the supplier must submit to us a written request for approval.
Communications
Does the franchisor own or control the business telephone numbers, or take them over when the agreement ends?
YesFranchise agreement
Franchisee acknowledges that all telephone numbers, facsimile numbers, telephone directory listings, e-mail addresses, social media accounts, websites, internet addresses, listings or other presence on the Internet (collectively “Identifiers”) used in the operation of the Franchised Business constitute Franchisor’s…
Data and IT
Must the franchisee comply with PCI, data-security or cybersecurity standards set by the franchisor?
YesItem 11
You must comply with all laws related to the operation of your Melt n Dip Business, including those related to data security and privacy and you must comply with all payment card industry (PCI) data security standards.
Franchise management
Does the franchisor conduct periodic inspections, audits or evaluations of the franchised business?
YesFranchise agreement
Franchisor or its designated agents or auditors shall have the right at all reasonable times to audit, review and examine by any means, including electronically through the use of telecommunications devices or otherwise, at its expense, the books, records, accounts and tax returns of Franchisee.
Can the franchisor change the operations manual and brand standards unilaterally?
YesFranchise agreement
Franchisor retains the right to modify, change, add to, delete, or supplement the Manual and to specify other systems, procedures or forms in any manner it deems necessary, in its sole discretion, and shall notify Franchisee about changes in writing by mail, electronic mail or postings on Franchisor’s intranet system…
Must the franchisor approve the franchisee's site or location before opening?
YesItem 11
You must obtain our final approval of your location for your Melt n Dip Business and have secured a lease for the location within 180 days of signing the franchise agreement.
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 is prohibited from creating or establishing Social Media accounts.
Must the franchisee participate in a customer loyalty or rewards program?
YesFranchise agreement
Franchisee agrees: (a) to offer for sale gift cards and/or the loyalty program, which must be in the form and version designated by Franchisor ("Official Gift Card/Loyalty Program"), as it may be amended from time to time;
Must the franchisee participate in a regional advertising cooperative when one exists?
YesFranchise agreement
Franchisee shall join and participate in any local advertising co- operative which has been or may be formed consisting of franchisees and/or Franchisor-owned or Affiliate- owned Melt n Dip Businesses in Franchisee’s area or region.
Operations
Must the franchisee buy products from a designated distributor?
YesItem 8
You must purchase all food and beverage products (except milk and fruit), beverages, paper goods, equipment, signs, furniture, fixtures, point-of-sale system, software, uniforms, cleaning supplies and other materials and supplies required in the operation of the Franchised Business that are or incorporate our trade…
Must equipment be purchased from designated or approved suppliers?
YesFranchise agreement
Franchisee must purchase all fixtures, furniture, signs, equipment, and other equipment, materials, products and supplies, and certain services, including but not limited to design and architectural services, from distributors and suppliers that Franchisor has designated or approved (which may include Franchisor or…
Payments
Are royalties and other fees collected by automatic bank debit (ACH or electronic funds transfer) from the franchisee's account?
YesItem 6
Unless otherwise designated by us, we currently require you to pay fees and other amounts due to us or our affiliates through electronic funds transfer via Automated Clearing House (“ACH”) or similar means.
Must the franchisee participate in a gift card program?
YesFranchise agreement
Franchisee agrees: (a) to offer for sale gift cards and/or the loyalty program, which must be in the form and version designated by Franchisor ("Official Gift Card/Loyalty Program"), as it may be amended from time to time;
People
Does the franchisor require minimum staffing levels or specific roles?
YesFranchise agreement
Franchisee agrees to staff the Franchised Business with the number of managers, assistant managers and employees sufficient to operate the Franchised Business in compliance with this Agreement and the standards and specifications in the Manual and to provide proper customer service during all hours of operation.
Must employees wear uniforms specified by the franchisor?
YesItem 8
You must purchase all food and beverage products (except milk and fruit), beverages, paper goods, equipment, signs, furniture, fixtures, point-of-sale system, software, uniforms, cleaning supplies and other materials and supplies required in the operation of the Franchised Business that are or incorporate our trade…
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 computer systems (software and the hardware to support it) and other technology requirements that we require for use at your Location.
Does the franchisor have independent access to the data in the franchisee's POS or computer system?
YesItem 11
We have the right to independently access your computer system to retrieve information regarding the operations of your Franchised Business and there are no limitations under the Franchise Agreement on our right to access.
Training
Can the franchisor charge the franchisee for additional, refresher or remedial training?
YesItem 6
If additional personnel are to Program be trained or retraining is required, you must pay an additional training fee.
Who buys here
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.
Melt n Dip is a quick-service restaurant franchise based in Illinois, with 16 total locations as of the 2026 FDD. The system is small but growing fast: year-over-year unit growth hit 62.5%, up from just a handful of units the prior year. For software vendors, this means a narrow but expanding addressable market—13 franchised and 3 company-owned units currently, with no multi-unit operators controlling multiple locations. Every new franchisee is a potential software buyer, and the absence of a mandated tech stack leaves the door open for competitive pitches.
The FDD lists three executives: Saad M. Khattab (Manager and CEO), Khalid Habbab (Manager and President), and Richard Oudeh (Franchise Manager). In a system this small, strategic decisions—including technology purchases—almost certainly reside with the CEO and President. There is no CIO or dedicated IT role, so vendors should expect direct engagement with the top leadership. The franchise manager, Oudeh, may handle day-to-day operational tool selections, but final approval likely rests with Khattab or Habbab.
The 2026 FDD does not mandate any specific POS, back-office, inventory, or labor management system. Unlike larger chains that force franchisees onto a single platform, Melt n Dip appears to operate with a fully open tech environment. This is a double-edged sword for vendors: there is no incumbent to displace, but also no centralized buying mandate that forces adoption. Sales efforts must target each unit owner individually or convince headquarters to adopt a standard.
Item 8 of the FDD provides no signals on designated suppliers or approved purchasing channels, reinforcing the open procurement model. Renewals are outlined in Item 17: franchisees can renew for one additional 10-year term by providing notice 13 to 18 months before expiration, paying a $10,000 renewal fee, and completing any required upgrades. Because the initial term is 10 years and the system is young, the first wave of renewals is still years away. However, the rapid unit growth means new franchise agreements are being signed frequently, each representing a fresh software buying opportunity. The lack of mandatory technology at signing means franchisees are free to choose their own systems from day one.
The FDD is embedded below for your review. Smart vendors focus on Item 11 (the franchisor's obligations) to see if any tech support is promised, and Item 8 (procurement) to understand if there are preferred vendors. Here, both are silent, confirming the hands-off approach. Cross-reference the operator list with your own CRM to identify which of the 11 mapped operators (all single-unit) might be in your pipeline. The 2026 FDD is your primary source of truth for any compliance or sales planning.
For a ranked list of the best franchise systems to target with your software, including real-time growth data and decision-maker contact signals, talk to FranCloud.
Questions vendors ask
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FDD alert
We’ll email you the moment ILLINOISMelt n Dip Franchising files a new annual FDD, usually the freshest signal of a vendor change.
Operator footprint
11 operators run 11 mapped locations. 0 of them are multi-unit. Aggregate counts from the filing; no names.
Operators by units owned
Top states by locations
| IL | 3 |
|---|---|
| MI | 2 |
| FL | 2 |
| GA | 1 |
| IN | 1 |
Related Quick service restaurant brands
Primary franchise filings · updated August 2026. Every figure is source-traceable and QA-checked.