se is Toast and as otherwise designated by us in the Manuals. You must purchase one configured and licensed point of sale hardware terminal. We also currently require that you use Xero for your accoun
From the filings
MidnighTreats
Quick service restaurantSoftware purchasing at MidnighTreats is controlled at the HQ level by a tight founding team. The system currently mandates Xero and operates just 4 total units, making this a small but growing target with a 50% year-over-year unit growth rate. Vendors should approach Johnny Nguyen (CEO) and Diana Nguyen (Director of Franchise Support) as the key decision-makers.
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 (FY2026)
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.
Franchisor behaviours
What the franchisor requires
28 requirements the franchisor states in this filing, each in its own words; 2 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?
YesItem 11
We also currently require that you use Xero for your accounting software.
Does the franchisor have direct or independent electronic access to the franchisee's financial, sales or customer records?
YesItem 11
We will have independent access to all of the information and data that is electronically transmitted on your point of sale system and will have access to all data related to the financial performance of your Shop.
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 including, but not limited to, income statement, statement of cash flows, balance sheet, and other operational reports designated…
How the franchisor buys
Is the franchisor or an affiliate itself a supplier of required products, services or systems?
YesItem 8
Our affiliate MidnighTreats, LLC is an approved supplier of dough, ingredients and paper goods.
Does the franchisor reserve the right to change designated suppliers or systems at any time?
YesFranchise agreement
Franchisor, in Franchisor’s Reasonable Business Judgment, may from time to time modify the list of approved brands, suppliers and distributors of System Supplies and approved equipment, supplies and services to be utilized by the Franchised Business
How much revenue did the franchisor and its affiliates earn from franchisee purchases in the last fiscal year?
0Item 8
During the fiscal year ending December 31, 2025, we did not earn any rebates or revenue from suppliers as a result of franchisee purchases of source restricted products or services.
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
Does the franchisor conduct periodic inspections, audits or evaluations of the franchised business?
YesFranchise agreement
conduct secret-shopper inspections, and other inspections either with or without notice to Franchisee.
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 Shop Location you must obtain our approval of your Shop 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 $4,000 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 calendar year quarterly basis, you must spend not less than 2% of your quarterly Gross Sales on the local marketing of your Shop.
Must the franchisee participate in a regional advertising cooperative when one exists?
YesFranchise agreement
If Franchisee’s Shop or Designated 36 MidnighTreats FDD January 14, 2026 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?
YesItem 6
ITEM 6 OTHER FEES Type of Fee Amount Due Date Remarks (Note 1) Royalty (Notes 2 and 3) 7% of Gross Sales Weekly on the Will be debited automatically from your Thursday of each bank account by ACH or other means week for the designated by us. preceding week Brand Development Up to 1% of Gross Weekly on the Will be…
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 Shop must be managed and supervised on-site by either a Managing Owner 28 MidnighTreats FDD January 14, 2026 or Operating Manager.
Must employees wear uniforms specified by the franchisor?
YesItem 11
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
Currently, the designated point of sale system that you must license and use is Toast and as otherwise designated by us in the Manuals.
Does the franchisor have independent access to the data in the franchisee's POS or computer system?
YesItem 11
We will have independent access to all of the information and data that is electronically transmitted on your point of sale system and will have access to all data related to the financial performance of your Shop.
Sales and CRM
Must the franchisee use a CRM system designated or approved by the franchisor?
YesFranchise agreement
3.E. BUSINESS MANAGEMENT SYSTEM 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 15 MidnighTreats FDD January 14, 2026 Franchisor from time to time.
Training
Can the franchisor charge the franchisee for additional, refresher or remedial training?
YesFranchise agreement
Franchisee or, if Franchisee is a Corporate Entity, Franchisee’s Managing Owner and Manager, at Franchisee’s sole cost and expense, must attend and successfully complete all refresher training courses or system-wide training courses, additional training programs and seminars as Franchisor periodically may designate…
Is attendance at an annual convention or conference mandatory for the franchisee?
YesItem 6
If we offer a franchisee annual conference in a given year you will be required to attend the conference on the dates and at the location that we designate.
The filing answers no to 2 questions
- Is there a franchisee advisory council, association or committee?Franchise agreement
- Does the franchisor or an affiliate receive rebates, commissions or other revenue from designated or approved suppliers?Item 8
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 MidnighTreats
MidnighTreats is a quick-service restaurant concept headquartered in Virginia with a total footprint of 4 units—3 franchised and 1 company-owned. The system reported an Average Unit Volume (AUV) of $453,566.26 in its 2026 Franchise Disclosure Document (FDD). While the absolute number of locations is small, the brand posted a 50% year-over-year unit growth rate, signaling an active expansion phase. For software vendors, this represents a nascent account where early relationships with leadership can lock in long-term contracts as the franchise scales. The operator base consists of 5 mapped operators, none of whom are multi-unit owners, and the unit-band split shows all operators fall into the 1-unit category. The top states for the brand are Virginia (3 units), Wisconsin (1), and Maryland (1).
Who controls software purchasing
Technology purchasing decisions at MidnighTreats are centralized at the headquarters level. The FDD lists two executives in Item 1: Johnny Nguyen, CEO and Co-Founder, and Diana Nguyen, Director of Franchise Support and Co-Founder. In a system of this size, these individuals function as the entire buying committee. Vendors should direct all pitches to this duo, as there is no separate IT or procurement department disclosed. The brand appears independently owned with no parent company on file, meaning no external corporate overlord dictates technology standards from above. This flat structure can accelerate sales cycles if you reach the right person.
Mandated and current tech stack
The 2026 FDD explicitly mandates Xero as a required system. No other technology vendors—whether for point-of-sale, payroll, inventory, or scheduling—are named in the current disclosure. This creates a clear wedge for vendors offering complementary or competing solutions, particularly in operational tech where no incumbent is publicly locked in. The mandate of Xero suggests a focus on cloud-based financial management, and any pitch should address integration capabilities with that platform. Beyond Xero, the tech landscape is a blank slate based on available data.
Procurement, renewals, and timing
Item 8 of the FDD, which typically outlines procurement restrictions and designated suppliers, provided no extract in the current filing. This means the franchisor’s formal procurement model—whether it uses a designated supplier, approved supplier list, or open market—is not publicly known. Vendors should clarify this directly during discovery conversations. On the renewal side, Item 17 describes a 10-year term with a structured renewal process. Franchisees must provide 180 days’ written notice, sign the then-current form of Franchise Agreement, pay a renewal fee, remodel their shop to meet current standards, and secure premises rights. This periodic renewal cycle creates natural inflection points where existing technology stacks may be reevaluated and replaced.
How to read the MidnighTreats FDD
The full 2026 MidnighTreats FDD is embedded below for your review. It contains the complete legal and operational disclosures filed with state franchise regulators, including detailed financial performance representations, the full franchise agreement, and the list of current and former franchisees. For software vendors, the most actionable sections are Item 1 (the executives), Item 11 (the franchisor’s assistance and mandated systems), Item 8 (procurement restrictions), and Item 17 (renewal and termination terms). Cross-reference these sections to build a complete picture of the decision-making process and contract timing. For a ranked target list tailored to your software category, FranCloud can help you prioritize accounts like MidnighTreats based on real FDD data.
Questions vendors ask
MidnighTreats, 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 MidnighTreats files a new annual FDD, usually the freshest signal of a vendor change.
Operator footprint
Who runs the locations
5 operators run 5 mapped locations. 0 of them are multi-unit. Aggregate counts from the filing; no names.
Operators by units owned
Top states by locations
| VA | 3 |
|---|---|
| WI | 1 |
| MD | 1 |
Related Quick service restaurant brands
Primary franchise filings · updated August 2026. Every figure is source-traceable and QA-checked.