From the filings
Software purchasing at Muginoho International is decided at the individual operator level, as the franchisor's 2026 FDD does not name mandated technology systems. The brand's addressable market is small, with only 36 total units, of which 34 are franchised. A notable -19% year-over-year unit contraction signals a shrinking footprint, making it a niche opportunity for vendors targeting single-unit operators in California, Texas, and Washington.
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 (FY2026)
15% reference
Franchisor behaviours
29 requirements the franchisor states in this filing, each in its own words; 1 explicit no; 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
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?
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;
Must the franchisee submit periodic financial statements (monthly, quarterly or annual) to the franchisor?
YesFranchise agreement
(2) Monthly Financial Statements and Reports – 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…
How the franchisor buys
Is the franchisor or an affiliate itself a supplier of required products, services or systems?
YesItem 8
Our affiliate, Muginoho Global PTE, Ltd. is currently designated as an approved supplier of frozen dough.
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?
365722Item 8
During the fiscal year ending December 31, 2025, we earned $365,722 in rebates from franchisee 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 receive rebates, payments and other material benefits from suppliers based on your purchases and we reserve the right to institute and expand rebate programs in the future.
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?
25Item 8
approximately 25% to 50% 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
Does the franchisor conduct periodic inspections, audits or evaluations of the franchised business?
YesFranchise agreement
Franchisor has the right at any and all times during business hours, throughout the terms of this Agree and without prior notice to Franchisee, to inspect Franchisee’s Shop.
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
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?
YesItem 7
You must spend a minimum of $6,000 prior to the opening of your Shop to promote your grand opening, with at least $4,000 of your grand opening marketing expenditure payable to us or our affiliates for the grand opening marketing campaign and at least $2,000 payable to us, our affiliates, or our designated suppliers…
Is the franchisee required to spend a minimum amount on local advertising or marketing, as a percentage of sales or a fixed amount?
YesFranchise agreement
On-going, and on a monthly basis, Franchisee must spend not less than 2% of Franchisee’s monthly Gross Sales on the local marketing of the Franchised Business within and/or targeted to Franchisee’s Designated Territory.
Must the franchisee participate in a regional advertising cooperative when one exists?
YesFranchise agreement
If Franchisor previously instituted or, in the future, institutes an Advertising Cooperative that includes, in whole or in part, Franchisee’s Designated Territory or Franchisee’s Shop Location, Franchisee shall participate in and make such on-going financial contributions to the Advertising Cooperative, as determined…
Operations
Must the franchisee buy products from a designated distributor?
YesFranchise agreement
(c) exclusively purchase and use System Supplies purchased from Franchisor or Franchisor’s 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
Credit Card Processing – 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) 5% of Gross Sales Monthly on the 7th Will be debited automatically from of each month for your bank account by ACH or other the preceding means designated by us. month Brand Development Up to 2% of Gross Monthly on the 7th 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 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 8
Currently you are required to purchase, license and utilize a Clover point-of-sale system with one configured hardware terminal.
Does the franchisor have independent access to the data in the franchisee's POS or computer system?
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.
Sales and CRM
Must the franchisee use a CRM system designated or approved by the franchisor?
YesFranchise agreement
Franchisee must complete training, purchase and license the Business Management Systems no later than 45 days prior to the earlier of the Actual Business Commencement Date or the Scheduled Business Commencement Date.
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.
Who buys here
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 franchisor's owner/CEO decides; an ops or franchise-development lead may evaluate.
Muginoho International operates as a quick-service restaurant concept based in California. According to its 2026 Franchise Disclosure Document (FDD), the system includes 36 total units, 34 of which are franchised. This is a lean footprint, and it's contracting: year-over-year unit growth is -19.048%. For a software vendor, the total addressable market is limited to those 34 franchisee-owned locations, concentrated primarily in California (14 units), Texas (5), Washington (3), Utah (2), and Massachusetts (2). The royalty is 5.0% on gross sales, and the initial franchise term runs 10 years. No average unit volume (AUV) is disclosed.
Because the system is composed entirely of single-unit operators—40 mapped operators, none of whom are multi-unit—every sales engagement is a one-off. Vendors must be prepared to sell to individual business owners, not a centralized procurement team. The shrinking unit count adds urgency; a prospect list will need frequent updating to avoid churned locations.
The 2026 FDD names three executives in Item 1: Kenkichi Sugiuchi (Chief Executive Officer), Akira Okura (Chief Operating Officer), and Aya Amada (Corporate Trainer). No CIO, CTO, or VP of Technology is listed, and no technology committee is mentioned. The absence of any mandated or recommended technology in the FDD points to a decentralized buying model. The 40 individual franchise operators hold full purchasing authority for their locations. A vendor's path to a sale runs directly through the franchisee, not through a headquarters-level mandate or group purchasing organization. The two company-owned units could represent a testing ground, but the franchisor has not published any preferred-vendor list to guide operators.
The 2026 FDD does not name any mandated or recommended technology systems or vendors. There is no Item 11 signal for a required POS, back-office, payroll, inventory, or online ordering platform. This means the tech landscape across the 34 franchised units is likely a patchwork of operator-selected tools. For a vendor, this is both an obstacle and an opening: you face no entrenched incumbent, but you must convince each operator individually that switching to your platform is worth the disruption. Without system-wide adoption patterns, your sales narrative must focus on the specific operational pain points of a quick-service restaurant with a 5% royalty structure.
No Item 8 procurement signal is present in the 2026 FDD, which aligns with the open purchasing environment. The renewal conditions in Item 17, however, create a structured window for vendor conversations. To renew, a franchisee must provide 180 days' prior written notice, sign the then-current form of Franchise Agreement—which may contain materially different terms—and pay a renewal fee. They must also remodel and upgrade the shop to current standards and secure the legal right to the premises. This remodel requirement can trigger a technology refresh. A vendor who times outreach to a franchisee's renewal window, roughly 6–12 months before the end of their 10-year term, may find a receptive buyer who must update their operations anyway.
The 2026 FDD is embedded below. Begin with Item 1 to confirm the executive team and Item 20 for the precise unit counts and state-level breakdown. Since no technology mandates appear in Item 11, your attention should shift to Item 17 for renewal timing and Item 19 for any earnings claim data that might justify a return on investment for your software. Pay close attention to the recent 19% contraction: a smaller, consolidating system may prioritize cost-saving tools or operational efficiency platforms that improve unit-level margins. When you're ready to map the 40 individual operators against your ideal customer profile, FranCloud can help you build a ranked target list.
Questions vendors ask
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FDD alert
We’ll email you the moment Muginoho International files a new annual FDD, usually the freshest signal of a vendor change.
Operator footprint
40 operators run 40 mapped locations. 0 of them are multi-unit. Aggregate counts from the filing; no names.
Operators by units owned
Top states by locations
| CA | 14 |
|---|---|
| TX | 5 |
| WA | 3 |
| UT | 2 |
| MA | 2 |
Ownership
unknown of day to life.
Related Quick service restaurant brands
Primary franchise filings · updated August 2026. Every figure is source-traceable and QA-checked.