The vendor opportunity at illy
illy operates 17 franchised locations in the US, all franchised with no company-owned units. Franchised outlet growth year over year was 0.0%. The Item 19 average for the 18 franchised locations open during the last fiscal year is $1,320,440. Royalty is 6% of sales, and the initial term is 10 years.
Who controls software purchasing
Technology decisions are centralized at the franchisor. Item 2 names Sandro Gastaldi as Interim President and Chief Executive Officer, Director, Chief Financial Officer, and Treasurer. Mark Romano is Vice President of Education, Quality and Sustainability. No dedicated CIO is listed, but the FDD's technology mandates give HQ direct control over franchisee systems.
Tech named in the FDD, and what is actually required
Item 11 requires franchisees to install and use the Computer System as directed. All sales must be recorded on a computer-based POS system capable of fully integrated sales data interface into illy's centralized computer system. Franchisees must make any changes to the Computer System as required and provide unimpeded independent access to the Computer System and Required Software. The FDD also requires participation in gift card, loyalty, and incentive programs, including purchase of software and hardware for gift card processing.
Procurement, renewals, and timing
Item 8 uses an approved-supplier list. Franchisees must buy all products, supplies, materials, equipment, and services only from suppliers designated or approved in writing. Coffee and other illy products must be purchased from illy or its distributors. Franchisees may propose a supplier for approval. Initial terms are 10 years, with one additional 5-year renewal term. Renewal requires signing the then-current Retail Location Agreement, which may have different terms including higher royalty fees.
How to read the illy FDD
The embedded PDF below is illy's 2025 Franchise Disclosure Document. Item 2 lists officers, Item 8 covers supplier restrictions, Item 11 sets technology and training requirements, Item 17 covers renewal and termination, and Item 19 provides financial performance representations. For a ranked target list of franchise systems, talk to FranCloud.