From the filings
Software purchasing at Karter Schools is controlled at the headquarters level by a tight executive team, led by CEO Kiet Nguyen and Chief Vision Officer Thuylinh Nguyen. The franchisor mandates a specific suite of systems—including a proprietary KARTER SCHOOL platform, childcare management, HR, marketing/CRM, and reporting/billing software—across its three company-owned locations. With an average unit volume of $2,844,784 and a 25-year initial term, the addressable market is small but concentrated, making direct HQ engagement essential for vendors.
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 (FY2023)
15% reference
Franchisor behaviours
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
Does the franchisor have direct or independent electronic access to the franchisee's financial, sales or customer records?
YesItem 11
We will have the right at all times to independently access your Technology to retrieve, analyze, and use the information, including your financial information, regardless of whether or not you were required to purchase the Technology.
How the franchisor buys
Is the franchisor or an affiliate itself a supplier of required products, services or systems?
YesItem 8
We or our affiliate are the designated supplier for interior design services and initial marketing assistance services for your Center.
Does the franchisor reserve the right to change designated suppliers or systems at any time?
YesItem 8
We may, in our discretion, unilaterally change or add to any specifications, standards, or approved goods, services, or suppliers.
How much revenue did the franchisor and its affiliates earn from franchisee purchases in the last fiscal year?
0Item 8
During our last fiscal year ended December 31, 2022, we received no revenue 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?
20Item 8
The cost of the items that you must purchase from us, our affiliates or from suppliers designated by us represents between 20% and 30% of your total purchases in operating your business.
Does the franchisor charge a fee to evaluate a proposed supplier?
YesItem 8
If you submit for our consideration a product or supplier, you must pay us $500, plus all costs and expenses we incur as a result of our testing and approval process.
Communications
Does the franchisor own or control the business telephone numbers, or take them over when the agreement ends?
YesItem 17
Upon termination you may have to assign your lease and phone numbers to us without compensation.
Data and IT
Must the franchisee comply with PCI, data-security or cybersecurity standards set by the franchisor?
YesItem 8
Since you accept credit cards as a method of payment, you must comply with payment card infrastructure (“PCI”) industry and government requirements.
Franchise management
Does the franchisor conduct periodic inspections, audits or evaluations of the franchised business?
YesItem 6
Follow-Up All costs and As incurred Payable if we perform a follow-up Inspection Fee expenses we inspection to review any corrective incur action you take to cure deficiencies.
Can the franchisor change the operations manual and brand standards unilaterally?
YesItem 11
We may periodically amend, update or replace the contents of the Manual.
Must the franchisor approve the franchisee's site or location before opening?
YesItem 11
You must submit your site to us for approval and execute your lease or purchase agreement within six months after 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?
YesItem 11
You may not establish or operate an Online Presence (including a website, webpage, domain name, Internet address, social media account, blog, forum, advertisement, e-commerce site, or email address) that in any way concerns, discusses, or alludes to us, the System, or your Franchised Business without our written…
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
We require that you spend at least (a) the greater of $5,000 or 3% of Gross Sales per month any time your Center has a current enrollment rate at or below 50%, or (b) the greater of $3,000 or 2% of Gross Sales per month any time your Center has a current enrollment rate above 50%.
Operations
Must the franchisee buy products from a designated distributor?
YesItem 8
Where we have designated an approved supplier, you must use that supplier.
Must equipment be purchased from designated or approved suppliers?
YesItem 8
Where we have designated an approved supplier, you must use that supplier.
Payments
Must the franchisee use a payment processor or merchant-services provider designated or approved by the franchisor?
YesItem 8
You are required to use the credit card processing service we approve.
Are royalties and other fees collected by automatic bank debit (ACH or electronic funds transfer) from the franchisee's account?
YesFranchise agreement
Franchisor may, but is not obligated to, require Franchisee to remit payment of the Royalty and other fees by electronic funds transfer (“EFT”).
People
Does the franchisor require minimum staffing levels or specific roles?
YesItem 15
Your KARTER SCHOOLS Franchised Business must be led by a team of at least three managers, including a Managing Principal with at least 20% ownership in the Franchised Business, Director, and Assistant Director.
Point of sale
Must the franchisee use a specific point-of-sale system designated or approved by the franchisor?
YesItem 11
You must purchase or lease the Technologies designated by us and from our designated supplier(s).
Does the franchisor have independent access to the data in the franchisee's POS or computer system?
YesItem 11
We will have the right at all times to independently access your Technology to retrieve, analyze, and use the information, including your financial information, regardless of whether or not you were required to purchase the Technology.
Training
Can the franchisor charge the franchisee for additional, refresher or remedial training?
YesFranchise agreement
Franchisor shall have the right to charge Franchisee fees for any mandatory or optional training, conferences, or conventions.
Is attendance at an annual convention or conference mandatory for the franchisee?
YesItem 11
Franchisees are required to attend all conferences and other required training courses.
Karter Schools operates three company-owned youth-services locations, all reporting under a single headquarters in Virginia. The system’s average unit volume sits at $2,844,784, with a 5.0% royalty rate and a 25-year initial franchise term. For software vendors, the immediate addressable market is exactly three units—no franchised locations are disclosed in the 2023 FDD, and year-over-year unit growth is not available. This is a small, centralized target where a single HQ relationship can unlock the entire footprint.
The franchisor mandates a specific technology stack across all locations, which means any vendor selling into Karter Schools must either displace an incumbent mandated system or integrate with the existing mandated suite. The absence of a large franchisee base simplifies procurement: there are no multi-operator groups to navigate, and no regional buying centers. The entire decision rests with the executive team.
The 2023 FDD lists two executives in Item 1: Kiet Nguyen, Chief Executive Officer, and Thuylinh Nguyen, Chief Vision Officer. In a system of this size, these individuals are the de facto technology buyers. There is no CIO, CTO, or VP of IT named in the disclosure, which is consistent with a three-unit operator. Vendors should prepare to engage directly with the CEO and CVO on any software evaluation. There is no parent company on file; Karter Schools appears independently owned, so no external corporate procurement layer exists.
Karter Schools mandates five categories of technology, as disclosed in the FDD: childcare management system software, human resource management software, the proprietary KARTER SCHOOL system, marketing/customer relationship management software, and reporting and billing system software. The FDD does not name the specific third-party vendors behind these mandates, only that each category is required. The presence of a proprietary system—the KARTER SCHOOL platform—suggests some level of in-house development or a white-label arrangement, which could limit opportunities for off-the-shelf replacements in that category. For vendors in HR, CRM, billing, or childcare management, the mandate signals an active, HQ-driven stack that may be open to evaluation if the current solutions are unnamed or aging.
Item 8 of the FDD does not provide an extract on procurement rules, so it is not publicly clear whether Karter Schools uses a designated supplier model, an approved supplier list, or an open procurement process. Vendors will need to qualify this directly in conversation. The renewal structure, detailed in Item 17, offers a 10-year extension term. To renew, franchisees must be in good standing, provide 12 months’ notice of non-renewal, agree to the then-current franchise agreement, make required upgrades, secure a sufficient lease, sign a release, and pay a renewal fee of 10% of the then-current franchise fee plus a $5,000 renewal training fee. The franchisor also reserves the right to offer materially different terms than the original contract. With only three company-owned units and a 25-year initial term, near-term renewal-driven software evaluations are unlikely unless the franchisor initiates a system-wide technology refresh.
The 2023 Karter Schools Franchise Disclosure Document is embedded below. It is the primary source for the data on this page and was filed with state franchise regulators. Reviewing the full FDD is the best way to verify mandates, executive contacts, and unit counts before building a pitch. For software vendors, the most relevant items are Item 1 (executives), Item 11 (mandated systems), Item 8 (procurement restrictions), and Item 17 (renewal conditions). If you need a ranked list of franchise systems that match your ideal customer profile, FranCloud can help you prioritize targets by tech stack, unit count, and buyer concentration.
Questions vendors ask
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FDD alert
We’ll email you the moment Karter Schools files a new annual FDD, usually the freshest signal of a vendor change.
Operator footprint
1 operators run 1 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 |
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Related Youth services brands
Primary franchise filings · updated June 2026. Every figure is source-traceable and QA-checked.