P a g e |4 Krak Boba FDD 2023 E Type of Fee 1 Amount Due Date Remarks Internal Systems Currently $350 per As incurred. We reserve the right to increase Fee month. this fee for new or improved technology for the benefit of the System and the Franchised Business, including, but not limited to: app usage and updates, assigned phone numbers and email addresses, a franchise portal, benchmarking platform, third party delivery technology or other operations and communications systems. Third-Party Delivery Up to 30% per As incurred. You are required to use third- Fee order. party delivery service providers, such as DoorDash, UberEats, and GrubHub, and pay their service fees either to third-party suppliers or us. Music Fee $35 subject to Monthly Payable to us or third-party increase. suppliers. Interest 1.5% per month or As incurred. If you fail to pay us any amount highest rate allowed when due, we may charge you by law. interest on the unpaid balance until the payment is received. Late Charge $200 As incurred. If you fail to pay us the Continuing Royalty Fee, Brand Fund Fee, or Internal Systems Fee or if you fail to submit your Gross Revenue report when due, we may charge you $200 for each late submission in addition to interest charges. Insufficient Funds $100 As incurred. Payable to us. If your check is Fee returned or an ETF transfer from your bank is denied for insufficient funds, for each occurrence we may charge you an Insufficient Funds Fee. Successor 10% of the then- Before signing Payable to us. See Item 17. Agreement Fee current Initial successor franchise Franchise Fee. agreement.
From the filings
Krak Boba
Retail foodSoftware purchasing at Krak Boba is controlled at the headquarters level by a tight executive team led by CEO Tin Do and COO Ben Pham. The franchise currently mandates a specific POS system across its 7-unit network, creating a clear entry point for complementary SaaS vendors. With an average unit volume of $704,212 and a 10-year initial term, the addressable market is small but concentrated, making direct HQ engagement essential.
For software vendors selling into US franchise brands.
Live signals
Ordinary royalty terms
6% component; full terms unconfirmed
Complete royalty terms are not confirmed for the selected filing.
Recorded percentage components
These are recorded percentage components. Each has its own base and conditions; the chart does not state the total payment or confirm ad-fund completeness.
1recorded components (FY2023)
15% reference
Mandated & recommended tech
The systems vendors compete with
Systems named in Item 11 of this filing. None is recorded as mandated here, which is not the same as the filing mandating nothing. Read Item 11 before treating the category as open.
3) You must spend a minimum of 1.5% of Gross Revenue per month on local advertising and marketing activities. Upon our request, you must furnish us with a quarterly report and documentation of local advertising expenditures during the previous calendar quarter. You must also spend at least $7,500 on local advertising and marketing at least 60 days prior to, and for 90 days following, the opening of your Krak Boba outlet. In addition to your local advertising expenditure requirement, you may use the social media platform With the exception of Facebook, all other social media platforms, networking and sharing websites will be administered by Franchisor, unless Franchisee receives prior written approval from us. Franchisee Facebook page content, postings, and ad campaign and all activities need to be approved by us or our third-party partner. Requests for approval must be submitted to us in writing. We have 14 days to approve your request. If you have not received a response from us within 14 days, your request is considered denied. Approved expenditures toward social media platforms and social media materials will be credited towards your required local advertising expenditures.
P a g e |4 Krak Boba FDD 2023 E Type of Fee 1 Amount Due Date Remarks Internal Systems Currently $350 per As incurred. We reserve the right to increase Fee month. this fee for new or improved technology for the benefit of the System and the Franchised Business, including, but not limited to: app usage and updates, assigned phone numbers and email addresses, a franchise portal, benchmarking platform, third party delivery technology or other operations and communications systems. Third-Party Delivery Up to 30% per As incurred. You are required to use third- Fee order. party delivery service providers, such as DoorDash, UberEats, and GrubHub, and pay their service fees either to third-party suppliers or us. Music Fee $35 subject to Monthly Payable to us or third-party increase. suppliers. Interest 1.5% per month or As incurred. If you fail to pay us any amount highest rate allowed when due, we may charge you by law. interest on the unpaid balance until the payment is received. Late Charge $200 As incurred. If you fail to pay us the Continuing Royalty Fee, Brand Fund Fee, or Internal Systems Fee or if you fail to submit your Gross Revenue report when due, we may charge you $200 for each late submission in addition to interest charges. Insufficient Funds $100 As incurred. Payable to us. If your check is Fee returned or an ETF transfer from your bank is denied for insufficient funds, for each occurrence we may charge you an Insufficient Funds Fee. Successor 10% of the then- Before signing Payable to us. See Item 17. Agreement Fee current Initial successor franchise Franchise Fee. agreement.
We do not provide for placement of local advertising on your behalf, and we have no obligation to spend any amount on advertising in your area or territory. You are responsible for local advertising placement. If feasible, you may do cooperative advertising with other Krak Boba franchisees in your area, with our prior written approval. You may not maintain any business profile on Facebook, Twitter, LinkedIn, YouTube or any other social media and/or networking site without our prior written approval. System-wide Brand Development Fund (Franchise Agreement, Section 13.3)
We do not provide for placement of local advertising on your behalf, and we have no obligation to spend any amount on advertising in your area or territory. You are responsible for local advertising placement. If feasible, you may do cooperative advertising with other Krak Boba franchisees in your area, with our prior written approval. You may not maintain any business profile on Facebook, Twitter, LinkedIn, YouTube or any other social media and/or networking site without our prior written approval. System-wide Brand Development Fund (Franchise Agreement, Section 13.3)
P a g e |4 Krak Boba FDD 2023 E Type of Fee 1 Amount Due Date Remarks Internal Systems Currently $350 per As incurred. We reserve the right to increase Fee month. this fee for new or improved technology for the benefit of the System and the Franchised Business, including, but not limited to: app usage and updates, assigned phone numbers and email addresses, a franchise portal, benchmarking platform, third party delivery technology or other operations and communications systems. Third-Party Delivery Up to 30% per As incurred. You are required to use third- Fee order. party delivery service providers, such as DoorDash, UberEats, and GrubHub, and pay their service fees either to third-party suppliers or us. Music Fee $35 subject to Monthly Payable to us or third-party increase. suppliers. Interest 1.5% per month or As incurred. If you fail to pay us any amount highest rate allowed when due, we may charge you by law. interest on the unpaid balance until the payment is received. Late Charge $200 As incurred. If you fail to pay us the Continuing Royalty Fee, Brand Fund Fee, or Internal Systems Fee or if you fail to submit your Gross Revenue report when due, we may charge you $200 for each late submission in addition to interest charges. Insufficient Funds $100 As incurred. Payable to us. If your check is Fee returned or an ETF transfer from your bank is denied for insufficient funds, for each occurrence we may charge you an Insufficient Funds Fee. Successor 10% of the then- Before signing Payable to us. See Item 17. Agreement Fee current Initial successor franchise Franchise Fee. agreement.
We do not provide for placement of local advertising on your behalf, and we have no obligation to spend any amount on advertising in your area or territory. You are responsible for local advertising placement. If feasible, you may do cooperative advertising with other Krak Boba franchisees in your area, with our prior written approval. You may not maintain any business profile on Facebook, Twitter, LinkedIn, YouTube or any other social media and/or networking site without our prior written approval. System-wide Brand Development Fund (Franchise Agreement, Section 13.3)
Franchisor behaviours
What the franchisor requires
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
Franchisee agrees to keep and maintain complete and accurate books and records of its transactions and business operations using the accounting procedures and chart of accounts specified by Franchisor.
Does the franchisor have direct or independent electronic access to the franchisee's financial, sales or customer records?
YesItem 11
We reserve the right to have independent access to your sales information and customer data generated by and stored in your system.
Must the franchisee submit periodic financial statements (monthly, quarterly or annual) to the franchisor?
YesFranchise agreement
Within ten (10) days after the close of each calendar month and within ninety (90) days after the close of each fiscal year, Franchisee will furnish Franchisor a full and complete written statement of income and expense and a profit and loss statement for the operation of the Franchised Business during said period…
How the franchisor buys
Is the franchisor or an affiliate itself a supplier of required products, services or systems?
YesItem 8
You will be required to purchase your supplies and inventory of tea, cups, and sealer directly from our affiliate, Krak Kingdom Supplies, LLC.
Does the franchisor reserve the right to change designated suppliers or systems at any time?
YesItem 11
We may in the future modify or establish other sales reporting systems as we deem appropriate, for the accurate and expeditious reporting of Gross Revenue and delivery of our products and services.
How much revenue did the franchisor and its affiliates earn from franchisee purchases in the last fiscal year?
0Item 8
As of December 31, 2022, our fiscal year end, we did not receive any revenue from franchisee required purchases.
Does the franchisor or an affiliate receive rebates, commissions or other revenue from designated or approved suppliers?
YesItem 8
We and/or our affiliates may derive revenue from your purchase of certain foodstuffs and other required products, including purchases from designated or approved suppliers.
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?
10Item 8
approximately 10% to 20% percent of the purchases and leases required for ongoing operations.
Does the franchisor charge a fee to evaluate a proposed supplier?
YesFranchise agreement
Franchisor reserves the right to charge Franchisee a fee equal Five Hundred Dollars ($500.00), plus the actual cost and expense for inspection and testing.
Can a franchisee propose a new supplier for the franchisor's approval?
YesItem 8
If you would like us to consider another item or supplier, you must make such request in writing to us and have the supplier give us samples of its product or service and such other information that we may require.
Communications
Does the franchisor own or control the business telephone numbers, or take them over when the agreement ends?
YesFranchise agreement
Franchisee has or will acquire during the term of the Franchise Agreement, certain right, title, and interest in and to those certain telephone numbers and regular, classified, internet page, and other telephone directory listings (collectively, the “Telephone Listings”) related to the Franchised Business or the Marks.
Data and IT
Must the franchisee comply with PCI, data-security or cybersecurity standards set by the franchisor?
YesFranchise agreement
Franchisee, at Franchisee’s sole cost and expense, shall implement all computer hardware, software and Internet security procedures, including required updates or upgrades thereto, that are reasonably necessary to protect Franchisee’s computer and payment processing systems and the data stored therein from viruses…
Franchise management
Does the franchisor conduct periodic inspections, audits or evaluations of the franchised business?
YesItem 11
conduct inspections of your Franchised Business, at the frequency and duration that we deem advisable.
Can the franchisor change the operations manual and brand standards unilaterally?
YesItem 17
we may change the Operations Manual and System standards at any time.
Must the franchisor approve the franchisee's site or location before opening?
YesFranchise agreement
No site may be used for the premises of the Franchised Business unless it is consented to in writing by Franchisor.
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 shall not establish any website or other listing on the Internet except as provided and specifically permitted herein.
Is a minimum grand opening advertising spend required?
YesFranchise agreement
Franchisee shall spend at least Seven Thousand Five Hundred Dollars ($7,500.00) (“Grand Opening Expenditure”) on Local Advertising and promotional activities in the Territory sixty (60) days prior to and within the first ninety (90) days after the opening of the Franchised Business to promote the opening of the…
Is the franchisee required to spend a minimum amount on local advertising or marketing, as a percentage of sales or a fixed amount?
YesItem 6
You must spend a minimum of 1.5% of Gross Revenue per month on local advertising and marketing activities.
Must the franchisee participate in a customer loyalty or rewards program?
YesFranchise agreement
Accept and honor all loyalty cards, promotional coupons, or other System-wide offers, on a uniform basis, as accepted by other franchisees in the System.
Operations
Must the franchisee buy products from a designated distributor?
YesItem 8
You will be required to purchase your supplies and inventory of tea, cups, and sealer directly from our affiliate, Krak Kingdom Supplies, LLC.
Must equipment be purchased from designated or approved suppliers?
YesItem 8
You must purchase any equipment or materials bearing the Marks in accordance with our specifications.
Payments
Are royalties and other fees collected by automatic bank debit (ACH or electronic funds transfer) from the franchisee's account?
YesItem 6
Royalty payments are paid monthly via ACH on the 5th calendar day following the close of each calendar month for the previous month.
People
Does the franchisor require minimum staffing levels or specific roles?
YesFranchise agreement
Franchisee shall designate and retain at all times a general manager (“General Manager”) to direct the operation and management of the Franchised Business location.
Point of sale
Must the franchisee use a specific point-of-sale system designated or approved by the franchisor?
YesItem 8
Currently, you must have the following hardware and software: Desktop or laptop, iPad, router, all in one printer/copier/scanner/fax, high-speed internet access, security cameras and security system and the POS system that we require.
Does the franchisor have independent access to the data in the franchisee's POS or computer system?
YesItem 11
We reserve the right to have independent access to your sales information and customer data generated by and stored in your system.
Training
Can the franchisor charge the franchisee for additional, refresher or remedial training?
YesItem 11
We reserve the right to impose a reasonable fee for tuition and/or attendance for all additional training programs, including the annual business meeting or conference.
Is attendance at an annual convention or conference mandatory for the franchisee?
YesItem 11
If we require it, you must attend mandatory additional training offered by us, and/or attend an annual business meeting or franchisee conference for up to five (5) days each year at a location we designate.
The filing answers no to 3 questions
- Is there a franchisee advisory council, association or committee?Item 11
- Must the franchisee participate in a customer-satisfaction or net-promoter survey program?Franchise agreement
- Must the franchisee participate in a regional advertising cooperative when one exists?Item 11
The vendor opportunity at Krak Boba
Krak Boba is a small, California-based retail food franchise with 7 total units—6 franchised and 1 company-owned—according to its 2023 Franchise Disclosure Document. For SaaS vendors, the opportunity is narrow but direct: a centralized HQ controls technology decisions, and the franchisor already mandates a POS system, signaling a willingness to enforce tech standards across the network.
Because the unit count is low, the total addressable market is just 7 locations. However, the presence of a mandated POS creates a natural integration or replacement conversation. Vendors selling adjacent tools—inventory, labor scheduling, loyalty, or analytics—can position against that existing stack. The key is reaching the right people at HQ.
Who controls software purchasing
The 2023 FDD lists four executives in Item 1: Tin Do (CEO), Ben Pham (COO), Cliff Nonnenmacher (Executive Vice President), and Justin Guevara (Chief Development Officer). No franchisee advisory council or multi-unit operators are disclosed in our corpus, and the operator footprint shows no mapped operators. This structure points to a top-down purchasing model where the C-suite makes technology decisions. For a vendor, the CEO and COO are the likely buyers; the Chief Development Officer may influence tools that support franchise growth.
There is no named CIO or VP of Technology, which is common in systems of this size. That means your pitch should be business-outcome-focused and brief enough for a CEO or COO to evaluate without a dedicated IT layer.
Mandated and current tech stack
Item 11 of the FDD confirms that Krak Boba requires franchisees to use a specific POS system. The vendor name is not disclosed in the document, which is not unusual—many FDDs describe the requirement without naming the supplier. No other technology systems are listed as mandated or recommended. This leaves the rest of the tech stack open: there is no disclosed requirement for accounting, payroll, inventory, online ordering, or CRM platforms.
For a software vendor, this is a mixed signal. The mandated POS means you will need to integrate with or displace an existing system. The absence of other mandates means there may be no incumbent in your category, but you will have to prove value to a leadership team that has not yet standardized those functions.
Procurement, renewals, and timing
Item 8 of the FDD does not provide a procurement extract, so the franchisor’s supplier designation model is not publicly known. It is unclear whether Krak Boba designates exclusive suppliers, maintains an approved list, or allows franchisees to purchase freely. Vendors should clarify this early in conversations with HQ.
Item 17 outlines renewal conditions: franchisees in good standing can renew for one additional term of 5 years, provided they give written notice at least six months before the end of their current term, pay a successor fee of 10% of the then-current initial franchise fee, and execute a new agreement—which may contain materially different terms. This renewal window is a natural trigger for technology re-evaluation. If early franchisees signed 10-year agreements around the brand’s founding, their first renewal cycle may be approaching, creating a potential opening for software vendors to engage.
How to read the Krak Boba FDD
The full 2023 Krak Boba Franchise Disclosure Document is embedded below. Key sections for software vendors include Item 1 (executives and ownership), Item 11 (mandated systems), Item 8 (procurement restrictions), and Item 17 (renewal and transfer conditions). The document confirms Krak Boba appears independently owned, with no parent company on file. Year-over-year unit growth is not disclosed. For a ranked target list of franchise systems that match your software category, FranCloud can help you prioritize based on tech mandates, unit counts, and decision-maker access.
Ordinary royalty terms
Complete royalty terms are not confirmed.
Questions vendors ask
Krak Boba, answered from the filing
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Related Retail food brands
Primary franchise filings · updated June 2026. Read the original filing for definitions, conditions, and qualifications.