From the filings
Software purchasing decisions at Nan Xiang Express are controlled at the headquarters level by a small executive team including CEO Xing Yan (“Eddie”) Zheng and CFO Richard Xu. The brand mandates a specific technology system, creating a single point of compliance for vendors. With only 10 total units split evenly between franchised and company-owned locations, the addressable market is extremely small and concentrated.
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.
6%of gross sales (FY2026)
15% reference
Franchisor behaviours
25 requirements the franchisor states in this filing, each in its own words; 3 explicit no's; 6 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
You agree to establish and maintain at your own expense a bookkeeping, accounting, and recordkeeping system conforming to the requirements and formats we prescribe from time to time.
Does the franchisor have direct or independent electronic access to the franchisee's financial, sales or customer records?
YesItem 11
We will have unlimited, independent access to the components of your Technology System that we designate, including your point-of-sale system and your branded email addresses and other Online Presences, at all times and you must ensure that we and our designees will have the right to collect and retain any and all…
Must the franchisee submit periodic financial statements (monthly, quarterly or annual) to the franchisor?
YesFranchise agreement
You further agree to deliver to us such financial records, including profit and loss statements, operating statements, cash flow statements, statistical reports, bank activity reports, tax records, royalty reports, and such other records we request, at the intervals (e.g. monthly, annual, etc.) and in the formats we…
How the franchisor buys
Is the franchisor or an affiliate itself a supplier of required products, services or systems?
YesItem 8
Other than as described in this Item 8, neither we nor our affiliates are suppliers of any required products or services to franchisees.
Does the franchisor reserve the right to change designated suppliers or systems at any time?
YesItem 11
We may modify system standards for the Technology System periodically, including the designated or approved suppliers for the Technology System, and you must update your Technology System to comply with the modified system standards promptly after you receive notice.
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?
90Item 8
Collectively, the purchases you obtain according to our specifications or from approved or designated suppliers will represent approximately 90% to 95% of your total purchases to establish your Restaurant and 90% to 95% of your total purchases to operate your Restaurant.
Does the franchisor charge a fee to evaluate a proposed supplier?
YesItem 8
If you ask us to evaluate any proposed alternative vendors, you must reimburse us our costs and expenses for evaluating such proposed alternative vendors upon invoice.
Can a franchisee propose a new supplier for the franchisor's approval?
YesItem 8
If you would like us to consider approving a vendor that is not already approved by us, you must submit your request in writing before purchasing any items or services from such vendor.
Data and IT
Must the franchisee comply with PCI, data-security or cybersecurity standards set by the franchisor?
YesFranchise agreement
You must secure and maintain in force throughout the Term all required licenses, permits and certificates relating to the operation of your Restaurant and operate your Restaurant in full compliance with all applicable laws, ordinances, and regulations, including food and safety laws, construction and accessibility…
Franchise management
Must the franchisee participate in a customer-satisfaction or net-promoter survey program?
YesFranchise agreement
participation in quality assurance and customer satisfaction programs
Does the franchisor conduct periodic inspections, audits or evaluations of the franchised business?
YesFranchise agreement
We and our designated agents or representatives, may at all times and without prior notice to you: (1) inspect your Restaurant; (2) observe, photograph and record (both audio and video) your Restaurant’s operation for consecutive or intermittent periods that we deem necessary; (3) continuously or periodically monitor…
Can the franchisor change the operations manual and brand standards unilaterally?
YesItem 17
we may change the Manuals and system standards at any time.
Must the franchisor approve the franchisee's site or location before opening?
YesItem 11
If you have not yet located a site for the Premises when you sign the Franchise Agreement, you must select a suitable site and obtain our written approval of that site as your Premises.
Marketing
Is the franchisee prohibited from operating its own website or social media accounts, or required to use pages the franchisor provides?
YesItem 11
Except as provided above, or as approved by us in writing or in the Manuals, you may not develop, maintain, or authorize any Online Presence that mentions your Restaurant, links to any System Website, or displays any of the Marks.
Is a minimum grand opening advertising spend required?
YesItem 11
You must spend at least $2,000 for a grand opening advertising program for your Restaurant.
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
In addition to the grand opening advertising program and the Brand Fund Contributions, you must spend an amount equal to 2% of your Gross Sales to advertise and promote your Restaurant (the “Local Advertising Expenditure”).
Operations
Must the franchisee buy products from a designated distributor?
YesFranchise agreement
You must purchase the products and services we periodically designate only from the Vendors we prescribe or approve, as applicable, and only on the terms and according to the specifications we approve.
Must equipment be purchased from designated or approved suppliers?
YesFranchise agreement
You must purchase the products and services we periodically designate only from the Vendors we prescribe or approve, as applicable, and only on the terms and according to the specifications we approve.
Payments
Are royalties and other fees collected by automatic bank debit (ACH or electronic funds transfer) from the franchisee's account?
YesItem 6
Currently, we require all payments to be made through electronic debit of your business account on or before their due dates or the next business day if the due date is a national holiday or a weekend day.
People
Does the franchisor require minimum staffing levels or specific roles?
YesFranchise agreement
Your Restaurant must always be under the direct on-site supervision of one or more persons who we have approved and who have completed the Initial Training Program to our satisfaction.
Must employees wear uniforms specified by the franchisor?
YesItem 8
You must purchase: (i) certain proprietary merchandise, smallwares, branded uniforms and packaging, frozen food, and sauces from our affiliates NXE Trading and/or MG Trading;
Point of sale
Must the franchisee use a specific point-of-sale system designated or approved by the franchisor?
YesItem 11
You must obtain and install the computer hardware, software, and point-of-sale system that we approve for Nan Xiang Express Restaurants (collectively, the “Technology System”).
Does the franchisor have independent access to the data in the franchisee's POS or computer system?
YesItem 11
We will have unlimited, independent access to the components of your Technology System that we designate, including your point-of-sale system and your branded email addresses and other Online Presences, at all times and you must ensure that we and our designees will have the right to collect and retain any and all…
Training
Can the franchisor charge the franchisee for additional, refresher or remedial training?
YesItem 11
We may charge our then-current training fees for such ongoing and/or recurring training at our then-current rate (currently, $300 per day), plus reimbursement of the travel and living expenses and out-of-pocket costs we incur.
Is attendance at an annual convention or conference mandatory for the franchisee?
YesItem 11
We may also require you (or if you are conducting business as an entity, your Managing Owner) and your General Manager (if any) attend one or more conferences of Nan Xiang Express Restaurant franchise owners at location we designate, which may be virtually.
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 franchisee/operator personally, or a small franchisor still owner-run. Wears every hat.
Nan Xiang Express presents a micro-cap sales target for software vendors. The system consists of only 10 total units, with 5 franchised and 5 company-owned locations. Critically, the brand is contracting, posting a -16.7% year-over-year unit decline. This is not a growth story; it is a small, potentially shrinking footprint where every location matters. The total addressable market for a vendor is capped at those 5 franchised outlets, assuming the company-owned side is not a separate sales motion. The brand is independently owned with no parent company on file, meaning there is no larger enterprise roll-up play. For a vendor, this is a precision strike, not a volume play.
Purchasing authority sits at headquarters. The FDD lists two executives: Xing Yan (“Eddie”) Zheng, Chief Executive Officer, and Richard Xu, Chief Financial Officer. In a system of this size, these are your buyers. There is no CIO or VP of Technology named, so the CEO and CFO likely evaluate any software that touches operations, finance, or compliance. The operator footprint confirms this centralization: only one operator is mapped across approximately one located unit, with zero multi-unit operators. There is no middle layer of franchisee influence to navigate. A vendor’s path runs directly through Zheng and Xu.
The 2026 FDD mandates a “Technology System” for franchisees. This is a strong compliance hook: if you can demonstrate that your software integrates with or improves upon the mandated system, you have a conversation starter. However, the FDD does not name the specific vendor or product. This means the current operational stack—POS, online ordering, kitchen display, loyalty—is a black box from the public filing. A vendor must engage the HQ directly to map the existing infrastructure and identify displacement or integration opportunities. The mandate signal is clear; the vendor name is not.
Procurement rules are opaque. The FDD provides no extract for Item 8, so we do not know if Nan Xiang Express uses designated suppliers, an approved supplier program, or an open market. This lack of disclosure means a vendor must qualify the procurement process early in the sales cycle. On renewals, the Item 17 conditions are detailed. Franchisees must give notice 180 to 365 days before expiration, remain in compliance, and sign a general release. The renewal term is 5 years, layered onto an initial 10-year term. With only 5 franchised units and recent closures, the number of upcoming renewal windows is small. A vendor should monitor any unit that opened roughly 9-10 years ago for a potential renewal-triggered tech evaluation.
The 2026 Franchise Disclosure Document is the foundational due-diligence asset for any vendor considering this account. It confirms the unit count, executive team, mandated technology, and renewal mechanics cited above. Key items for a software vendor to scrutinize include Item 11 (the franchisor’s assistance, advertising, and technology obligations) and Item 17 (renewal and termination). The full document is embedded below. Use it to verify the current state before you reach out to HQ. For a ranked list of franchise targets that fit your software, including systems with stronger growth signals, FranCloud can build that list.
Questions vendors ask
Every number on this page traces back to this document. Read it in full, page by page. Buy the original PDF to download, search, and annotate it.
View only A one-time purchase: the original filing, yours to keep.
FDD alert
We’ll email you the moment Nan Xiang Express 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
Ownership
unknown of nxe holding.
Related Quick service restaurant brands
Primary franchise filings · updated June 2026. Every figure is source-traceable and QA-checked.