In the fiscal year ended 2022 neither we nor any affiliates derived revenue from purchases or leases made by our Franchisees. Required Vendors POS system and software: CenterEdge Software, 5050 Durham
From the filings
KTR
Youth servicesSoftware purchasing at KTR is controlled at the headquarters level by Members Ronald Sciarro and Paul Preston. The franchise currently mandates CenterEdge for operations and a custom scheduling and reporting tool, alongside QuickBooks for accounting. With 5 franchised units and 25% year-over-year unit growth, the addressable market is small but expanding.
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.
8%of gross sales (FY2023)
15% reference
Mandated & recommended tech
The systems vendors compete with
1 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.
We will begin charging this fee approximately 2 to 3 months prior to opening. You may also need a laptop or PC for basic office functions, including an accounting software such as QuickBooks. We estim
Franchisor behaviours
What the franchisor requires
21 requirements the franchisor states in this filing, each in its own words; 7 explicit no's; 6 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 access to this information over the Internet.
Must the franchisee submit periodic financial statements (monthly, quarterly or annual) to the franchisor?
YesFranchise agreement
Franchisee must submit to Franchisor current financial statements and other reports as Franchisor may reasonably request to evaluate or compile research data on any operational aspect of the Franchise.
How the franchisor buys
Does the franchisor reserve the right to change designated suppliers or systems at any time?
YesFranchise agreement
Franchisor reserves the right to periodically change, improve, or further develop the System, or any part of the System.
How much revenue did the franchisor and its affiliates earn from franchisee purchases in the last fiscal year?
0Item 8
In the fiscal year ended 2022 neither we nor any affiliates derived revenue from purchases or leases made by our Franchisees.
Does the franchisor or an affiliate receive rebates, commissions or other revenue from designated or approved suppliers?
YesItem 11
We may receive rebates from the suppliers for these 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?
10Item 8
will represent from 10%-15% of your ongoing expenses.
Can a franchisee propose a new supplier for the franchisor's approval?
YesItem 8
If you would like to purchase these items from another supplier, you may request our “Supplier Approval Criteria and Request Form.”
Franchise management
Does the franchisor conduct periodic inspections, audits or evaluations of the franchised business?
YesFranchise agreement
Franchisor shall have the right to observe Franchisee and its customers/clients rendering services, to confer with Franchisee’s employees and customers/clients and to generally review the Business operations for compliance with the standards and procedures set forth in the Manual.
Can the franchisor change the operations manual and brand standards unilaterally?
YesFranchise agreement
Franchisor may periodically update and revise the Manual.
Must the franchisor approve the franchisee's site or location before opening?
YesItem 12
You will operate your Outlet from a location approved by us and must receive our written permission before relocating.
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 may not establish a presence on the Internet except as we may specify, and only with our prior written consent.
Is a minimum grand opening advertising spend required?
YesItem 7
Franchisee will be required to spend between $15,000 and $24,000 on local advertising and marketing in franchisee’s Exclusive territory prior to opening and during the first three months of operation.
Operations
Must the franchisee buy products from a designated distributor?
YesItem 8
You must purchase the helmets, pads, scooters and boards as well as software and a POS system from our approved and/or designated suppliers.
Must equipment be purchased from designated or approved suppliers?
YesItem 8
You must purchase the helmets, pads, scooters and boards as well as software and a POS system from our approved and/or designated suppliers.
Payments
Must the franchisee use a payment processor or merchant-services provider designated or approved by the franchisor?
YesItem 11
You are required to purchase equipment and a license from our required 3rd party software and POS system from our only approved vendor, CenterEdge Software.
Are royalties and other fees collected by automatic bank debit (ACH or electronic funds transfer) from the franchisee's account?
YesFranchise agreement
All payments must be made by any method Franchisor reasonably specifies, including check, cash, certified check, money order, credit or debit card, automatic pre-authorized payment plan, electronic funds transfer, or payment in advance.
People
Does the franchisor require minimum staffing levels or specific roles?
YesFranchise agreement
Franchisee or a fully trained and qualified manager (“Manager”) approved by Franchisor must participate personally and full-time in the Business.
Point of sale
Must the franchisee use a specific point-of-sale system designated or approved by the franchisor?
YesItem 8
You must purchase the helmets, pads, scooters and boards as well as software and a POS system from our approved and/or designated suppliers.
Sales and CRM
Must the franchisee use a CRM system designated or approved by the franchisor?
YesItem 11
You are required to purchase equipment and a license from our required 3rd party software and POS system from our only approved vendor, CenterEdge Software.
Training
Can the franchisor charge the franchisee for additional, refresher or remedial training?
YesItem 11
After you complete this initial training to our satisfaction, there are no additional required training courses, however we offer an optional refresher training course at $495.
Is attendance at an annual convention or conference mandatory for the franchisee?
YesItem 11
You are required to attend these conferences.
The filing answers no to 7 questions
- Must the franchisee use an accounting or bookkeeping system designated or approved by the franchisor?Item 11
- Is the franchisor or an affiliate itself a supplier of required products, services or systems?Item 8
- Is there a franchisee advisory council, association or committee?Item 11
- Does the franchisor charge a fee to evaluate a proposed supplier?Item 8
- Is the franchisee required to spend a minimum amount on local advertising or marketing, as a percentage of sales or a fixed amount?Item 11
- Must the franchisee participate in a regional advertising cooperative when one exists?Item 11
- Does the franchisor have independent access to the data in the franchisee's POS or computer system?Item 11
The vendor opportunity at KTR
KTR is a youth-services franchise based in Arizona with a small but growing footprint. The 2023 Franchise Disclosure Document reports 5 total units, all of which are franchised. The number of company-owned locations was not disclosed. Year-over-year unit growth sits at 25%, signaling an expansion phase that could create incremental software needs. For a vendor, the immediate addressable market is limited to these 5 locations, but the growth trajectory and a 10-year initial term suggest a stable, long-term operator base. Average unit volume is not disclosed in the FDD, and the royalty rate is 6.0%.
Who controls software purchasing
Purchasing authority at KTR is concentrated at headquarters. The FDD’s Item 1 identifies two Members: Ronald Sciarro and Paul Preston. No other executives or department heads are listed, which implies a lean leadership structure where these individuals likely serve as the primary decision-makers for technology procurement. A vendor pitching KTR should direct outreach to these Members, framing the conversation around how a solution supports a small, multi-unit franchise system with mandated operational software already in place.
Mandated and current tech stack
KTR’s technology environment is defined by a mix of mandated and recommended systems. The FDD specifies that CenterEdge is a mandated platform, and a custom Point of Sale (POS) system with scheduling and report-generating capabilities is also required. QuickBooks by Intuit Inc. is listed as a specified system for accounting. This stack covers core operations, point-of-sale, scheduling, reporting, and financial management. Any vendor offering adjacent or complementary software—such as HR, payroll, marketing automation, or advanced analytics—must integrate with or augment this existing mandated core without disrupting it.
Procurement, renewals, and timing
The FDD does not include an extract for Item 8, which typically details procurement restrictions and designated suppliers. Without that signal, the procurement model remains unknown; it is not clear whether franchisees have autonomy to select their own vendors or must purchase exclusively through HQ-approved channels. On the renewal side, Item 17 provides a clear window. The initial franchise agreement runs for 10 years. A franchisee in good standing can renew for an additional 10-year term by signing a new agreement, paying a renewal fee, and meeting all payment obligations. Critically, the franchisor reserves the right to present a new Franchise Agreement with materially different terms and to adjust territory boundaries. Royalty payments upon renewal will not exceed the rate charged to new franchisees. This means that every decade, the entire system effectively re-contracts, creating a potential trigger for re-evaluating technology vendors across the network.
How to read the KTR FDD
The 2023 KTR Franchise Disclosure Document is the foundational source for understanding the legal and operational constraints that shape software purchasing. The embedded viewer below contains the full filing. Key sections for a vendor include Item 1 for executive identities, Item 11 for the mandated technology stack, and Item 17 for renewal and re-contracting timelines. Because the operator footprint and Item 8 procurement model are not detailed in our corpus, the FDD itself remains the best resource for filling those gaps. For a ranked target list of franchise brands that match your software’s ideal customer profile, FranCloud can help you prioritize your outreach.
Questions vendors ask
KTR, answered from the filing
Read the filing itself
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FDD alert
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Operator footprint
Who runs the locations
8 operators run 8 mapped locations. 0 of them are multi-unit. Aggregate counts from the filing; no names.
Operators by units owned
Top states by locations
| AZ | 6 |
|---|---|
| UT | 1 |
| WI | 1 |
Related Youth services brands
Primary franchise filings · updated June 2026. Every figure is source-traceable and QA-checked.