KARAK HOUSE FRANCHISING COMPANY

The vendor opportunity at Karak House

Karak House Franchising Company presents a nascent opportunity for software vendors. The brand operates a single company-owned quick-service restaurant in California and has not yet opened any franchised locations. This means the total addressable market for a vendor today is exactly 1 unit. The average unit volume (AUV) is not disclosed in the 2025 FDD. The royalty rate is set at 6.0% of gross sales, and the initial franchise term is 10 years. For a vendor, the immediate play is not a multi-unit rollout but a strategic relationship with the founding team as they build the infrastructure to support future franchisees.

Who controls software purchasing

All software purchasing decisions are centralized at the corporate headquarters. The executive team listed in Item 1 of the FDD includes Junaid Malik (Founder/CEO), Zohaib Malik (Co-Founder, Head of Operations & Franchise Director), Rohail Malik (Co-Founder, Head of Marketing & Communications), Nadia Malik (Co-Founder, Head of Design), and Ghazala Zahid (Co-Founder, Head of Corporate HR). As a founder-led organization with no separate IT or procurement leadership disclosed, the CEO and the Head of Operations are the most likely decision-makers for any technology evaluation. There is no parent company on file; the brand appears to be independently owned.

Mandated and current tech stack

The 2025 FDD mandates three categories of technology. First, the point-of-sale system is Toast by Toast, Inc., a widely adopted cloud-based restaurant POS. Second, franchisees must use a franchise management software, though the specific vendor is not named. Third, an online ordering application software is also mandated, again without a named vendor. This creates a clear opening for vendors in the franchise management and online ordering spaces, as the brand may still be evaluating or open to switching providers for these functions. The mandated nature of these systems means any software sold into the system must integrate with or complement Toast.

Procurement, renewals, and timing

The FDD does not include an Item 8 extract, so the procurement model—whether the franchisor designates specific suppliers, maintains an approved list, or allows franchisees to purchase from any source—is not publicly known. For a vendor, this means the first conversation should be about understanding their supplier governance. On the renewal side, the franchise agreement has a 10-year initial term with a 5-year renewal option. Renewal conditions include giving written notice between 6 and 12 months before expiration, signing the then-current franchise agreement, complying with modernization requirements, and paying a renewal fee. With no franchised units yet, these renewal windows are not a near-term factor for software sales, but they define the long-term contractual rhythm once franchisees are onboarded.

How to read the Karak House FDD

The Franchise Disclosure Document is the foundational research tool for any vendor targeting a franchise brand. It contains the audited financials, the franchise agreement, and the list of mandated suppliers. For Karak House, the 2025 FDD confirms the early-stage nature of the system and the specific technology mandates in place. The full document is embedded below for your review. When you are ready to prioritize franchise brands with a larger addressable market or specific tech gaps, FranCloud can provide a ranked target list built from FDD data.