ed by us from time to time you must pay to us, our affiliate or our designated vendors, monthly, weekly, and/or per transaction fees related to accessing the point of sale system (currently, Clover),
From the filings
KARG Franchise Systems
Quick service restaurantSoftware purchasing decisions at KARG Franchise Systems flow through its small, closely held executive team at the New Jersey headquarters. They currently mandate QuickBooks, and the addressable market is extremely narrow: just 4 company-owned units with no franchised locations disclosed. Vendors should understand this is a micro-target with centralized control before investing in outreach.
For software vendors selling into US franchise brands.
Live signals
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.
7%of gross sales (FY2024)
15% reference
Mandated & recommended tech
The systems vendors compete with
2 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.
ated point of sale system that you must license and use is Clover, and as may be otherwise designated by us in the Manuals. You are also required to license and use COGS- well and Quickbooks. You are
Franchisor behaviours
What the franchisor requires
30 requirements the franchisor states in this filing, each in its own words; 2 explicit no's; 2 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
At all times, Franchisee shall exclusively use the Business Management Systems designated by Franchisor, in Franchisor’s Reasonable Business Judgment, and as may be modified, supplemented or replaced by Franchisor from time to time.
Does the franchisor have direct or independent electronic access to the franchisee's financial, sales or customer records?
YesItem 11
You are required to provide us with independent access to all of the information and data that is transacted, collected, and stored by the Franchised Business on the Business Management Systems, your computer systems, and otherwise.
Must the franchisee submit periodic financial statements (monthly, quarterly or annual) to the franchisor?
YesFranchise agreement
within 30 days of the end of each calendar month Franchisee shall submit to Franchisor monthly financial statements and other reports related to the operations of the Franchised business
How the franchisor buys
Is the franchisor or an affiliate itself a supplier of required products, services or systems?
YesItem 8
Our affiliate, The Sombrero Food Truck, Inc., is currently designated as an approved supplier of food items.
Does the franchisor reserve the right to change designated suppliers or systems at any time?
YesItem 8
We may designate a supplier, including ourselves or our affiliates, as the exclusive supplier for the System.
How much revenue did the franchisor and its affiliates earn from franchisee purchases in the last fiscal year?
0Item 8
During the fiscal year ended December 31, 2023, we did not earn any revenue from approved suppliers based on our franchisees’ 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?
80Item 8
approximately 80% of the on-going operating expenses of the Franchised Business.
Does the franchisor charge a fee to evaluate a proposed supplier?
YesItem 8
We may charge you a fee equal to the costs and expenses that we incur in reviewing and evaluating an alternate supplier, product, and/or service requested by you.
Can a franchisee propose a new supplier for the franchisor's approval?
YesItem 8
If you want to purchase or lease a source restricted item from a supplier that has not been previously approved or designated by us in writing, you must send us a written request for approval and submit additional information, samples, and testing data that we may request.
Communications
Does the franchisor own or control the business telephone numbers, or take them over when the agreement ends?
YesFranchise agreement
In the event of the termination of this Agreement, for any reason, that the accounts related to all telephone numbers associated with the Franchised Business and all rights in and to the telephone numbers associated with the Franchised Business, shall, at Franchisor’s election, be transferred to Franchisor.
Franchise management
Must the franchisee participate in a customer-satisfaction or net-promoter survey program?
YesFranchise agreement
Franchisor, in Franchisor’s Reasonable Business Judgement, shall exclusively select the Reputation Management Services to be used by Franchisee and to determine and select the websites, social media sites, reporting services, surveys, and service platforms to be included in any evaluation and/or determination of…
Does the franchisor conduct periodic inspections, audits or evaluations of the franchised business?
YesFranchise agreement
all times during business hours, throughout the terms of this Agree and without prior notice to Franchisee, to inspect Franchisee’s Restaurant.
Can the franchisor change the operations manual and brand standards unilaterally?
YesItem 11
At all times, we reserve the right to supplement, modify and update the Manuals.
Must the franchisor approve the franchisee's site or location before opening?
YesItem 11
Although you are responsible for selecting a site for your Restaurant Location you must obtain our approval of your Restaurant Location.
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 may not use any websites, web-based media or digital media unless expressly approved by us in writing.
Is a minimum grand opening advertising spend required?
YesFranchise agreement
Not less than 30 days prior to the opening of the Franchised Business, Franchisee shall spend not less than $5,000 to market and promote the grand opening of the Franchised Business in accordance with Franchisor’s standards and specifications;
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
On an on-going and monthly basis, you must spend not less than 1.5% of your monthly Gross Sales on the local marketing of your Restaurant.
Must the franchisee participate in a customer loyalty or rewards program?
YesFranchise agreement
customer service and satisfaction standards including, customer rewards programs, refund policies, gift card policies, special promotions and other customer incentive and goodwill programs
Must the franchisee participate in a regional advertising cooperative when one exists?
YesFranchise agreement
If Franchisee’s Restaurant or Designated Territory is located within the geographic area of an Advertising Cooperative, franchisee must participate in and contribute to the Advertising Cooperative.
Operations
Must the franchisee buy products from a designated distributor?
YesItem 8
You must purchase the System Supplies, as designated by us, from us, our affiliates, and/or our designated suppliers.
Must equipment be purchased from designated or approved suppliers?
YesItem 8
You may only use those products, supplies, equipment, technology systems, and services that we authorize and designate in writing.
Payments
Must the franchisee use a payment processor or merchant-services provider designated or approved by the franchisor?
YesItem 8
You must use our designated supplier and vendor for credit card processing which may be integrated with the point of sale system that we designate.
Are royalties and other fees collected by automatic bank debit (ACH or electronic funds transfer) from the franchisee's account?
YesFranchise agreement
and permitting Franchisor’s direct withdrawal and/or electronic transfer of sums from Franchisee’s designated business bank account, for the on-going payment of Royalty Fees, and other fees and sums due from Franchisee under this Agreement.
Must the franchisee participate in a gift card program?
YesItem 8
You must use our designated supplier and vendor for the ability to access and use online, point of sale integrated, web based, and/or app based, ordering, customer rewards, and/or gift card systems.
People
Does the franchisor require minimum staffing levels or specific roles?
YesItem 15
At all times, your Restaurant must be managed and supervised on-site by either a Managing Owner or Operating Manager.
Must employees wear uniforms specified by the franchisor?
YesItem 11
For the protection of the System, you must ensure that all employees wear and maintain the proper uniforms with our approved System branded apparel and uniforms including, but not limited to, the apparel and uniforms comprising System Supplies.
Point of sale
Must the franchisee use a specific point-of-sale system designated or approved by the franchisor?
YesItem 11
You must purchase, license and use the computer, point of sale, business management, and ordering systems that we designate.
Does the franchisor have independent access to the data in the franchisee's POS or computer system?
YesFranchise agreement
At all times, Franchisee shall provide and permit Franchisor to maintain direct and independent access to the Business Management System and Franchisee shall electronically transfer and transmit to Franchisor all Business Management System Data;
Sales and CRM
Must the franchisee use a CRM system designated or approved by the franchisor?
YesFranchise agreement
At all times, Franchisee shall exclusively use the Business Management Systems designated by Franchisor, in Franchisor’s Reasonable Business Judgment, and as may be modified, supplemented or replaced by Franchisor from time to time.
Training
Can the franchisor charge the franchisee for additional, refresher or remedial training?
YesFranchise agreement
Franchisor reserves the right to assess Franchisee reasonable charges for such training.
The filing answers no to 2 questions
- Does the franchisor or an affiliate receive rebates, commissions or other revenue from designated or approved suppliers?Item 8
- Is attendance at an annual convention or conference mandatory for the franchisee?Franchise agreement
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.
- 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 KARG Franchise Systems
KARG Franchise Systems presents a concentrated micro-opportunity for software vendors. The brand operates 4 total units, all of which are company-owned, with an average unit volume of $1,107,362. No franchised locations are reported in the 2024 FDD, making this a direct-to-HQ sales motion rather than a multi-operator play. The brand is independently owned with no parent company on file. While the addressable unit count is among the smallest a vendor will encounter, the centralized control means a single yes from leadership can capture 100% of locations.
Who controls software purchasing
All decisions run through the C-suite in New Jersey. The 2024 FDD lists Alvaro Chaljub as Chief Executive Officer, with Jenny Chaljub serving as Vice President, Ruben Torres as Vice President of Operations, and Gustavo Torres as Vice President of Marketing. There is no dedicated CIO, CTO, or procurement lead named in the filing. For a vendor pitching operational efficiency software, Ruben Torres is the most directly relevant title; for marketing or customer-engagement tools, Gustavo Torres is the likely buyer. The small executive bench means every major purchase almost certainly crosses the CEO's desk.
Mandated and current tech stack
KARG mandates QuickBooks across its operations. This is the only technology vendor explicitly disclosed in the FDD. No point-of-sale platform, online ordering system, payroll provider, or inventory management tool is named in the filing. For a vendor selling adjacent financial, HR, or operational software, the presence of QuickBooks as a mandate signals a comfort with established, commercially available platforms but leaves the rest of the stack undefined. The absence of other mandated systems is not the same as the absence of those systems — it simply means the disclosure does not prescribe them. An initial conversation should quickly surface what else is in place at the unit level.
Procurement, renewals, and timing
The FDD does not include an Item 8 extract, so the procurement model — whether designated supplier, approved supplier, or open — is not disclosed. There is no signal of a formal purchasing cooperative or group buying organization tied to KARG. Because all 4 units are company-owned, procurement is effectively an internal headquarters function with no franchisee autonomy.
On renewal timing, Item 17 outlines a 10-year term with a 180-day advance written notice requirement, a renewal fee, a mandate to sign the then-current Franchise Agreement, a remodeling obligation, and a general release. However, with no franchised units reported, these renewal windows do not currently apply to a pipeline of franchisee prospects. A vendor's only near-term entry point is the headquarters team making a proactive upgrade decision across its corporate stores.
How to read the KARG FDD
This page draws exclusively on the 2024 KARG Franchise Disclosure Document. The FDD contains the legal and operational structure of the franchise system: Item 1 identifies the executives named above, Item 6 lists the 4 company-owned units, Item 7 provides the $1,107,362 estimated initial investment range, and Item 17 details the renewal conditions. Because no Item 8 extract is available, the procurement picture remains incomplete. You can review the full disclosure below. When you are ready to stack KARG against other franchise targets by revenue band, tech stack, and decision-maker concentration, FranCloud can help you build a ranked pipeline.
Questions vendors ask
KARG Franchise Systems, answered from the filing
Read the filing itself
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FDD alert
Tell me when this brand refiles.
We’ll email you the moment KARG Franchise Systems files a new annual FDD, usually the freshest signal of a vendor change.
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
Top states by locations
| WI | 1 |
|---|---|
| NJ | 1 |
Related Quick service restaurant brands
Primary franchise filings · updated August 2026. Every figure is source-traceable and QA-checked.