From the filings
Software purchasing decisions at Nan Xiang Xiao Long Bao are controlled at the headquarters level in New Jersey, where CEO Xing Yan (“Eddie”) Zheng and CFO Richard Xu lead the buying center. The 2026 Franchise Disclosure Document mandates a specific technology system for all units, creating a single integration point for vendors. The addressable market is currently limited to 10 company-owned locations, with no franchised units reported.
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
26 requirements the franchisor states in this filing, each in its own words; 3 explicit no's; 5 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…
How the franchisor buys
Is the franchisor or an affiliate itself a supplier of required products, services or systems?
YesItem 8
We or our affiliates may be an exclusive or approved supplier of products and services.
How much revenue did the franchisor and its affiliates earn from franchisee purchases in the last fiscal year?
0Item 8
In our 2025 fiscal year, neither we nor our affiliates received any revenue from the sale of food products and supplies to franchisees.
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 in the form of rebates or other consideration from suppliers based on franchisees’ purchases and leases of certain products and services, though neither we nor our affiliates do so.
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.
Communications
Does the franchisor own or control the business telephone numbers, or take them over when the agreement ends?
YesFranchise agreement
You agree that, as between us and you, we reserve the right to all telephone numbers, fax numbers, email addresses, Online Presences, online listings, and/or any other type of contact information or directory listing for your Restaurant or that you use in the operation or promotion of your Restaurant (collectively…
Data and IT
Must the franchisee comply with PCI, data-security or cybersecurity standards set by the franchisor?
YesFranchise agreement
operate your Restaurant in full compliance with all applicable laws, ordinances, and regulations, including food and safety laws, construction and accessibility laws, and data protection and PCI compliance standards.
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 agents or representatives may at any time during your business hours, without prior notice to you, examine the bookkeeping and accounting records for your Restaurant, sales and income tax records and returns, and other records.
Can the franchisor change the operations manual and brand standards unilaterally?
YesFranchise agreement
You agree at all times to operate and maintain your Restaurant according to each and every System Standard, as we periodically modify and supplement them.
Must the franchisor approve the franchisee's site or location before opening?
YesFranchise agreement
We must approve the site of your Restaurant before you sign any lease, sublease, or other document to secure its occupancy rights (the “Lease”).
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 7
You must spend at least $12,000 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?
YesItem 8
(ii) the Technology System from our designated exclusive suppliers; and (iii) other food and beverage items, furniture, fixtures, equipment, insurance, architect, and advertising services from vendors we have approved.
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?
YesItem 11
You (or if you are conducting business as an entity, your Managing Owner), one additional management level employee we approve (which must be your General Manager, if we have approve you to operate using a General Manager), and the employee that you hire as your head kitchen manager (together, the “Mandatory…
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, though these products may be processed through our approved distributors;
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 Xiao Long Bao 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 Xiao Long Bao 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 Xiao Long Bao operates 10 quick-service restaurants, all of which are company-owned. The brand is headquartered in New Jersey and does not report any franchised units in its 2026 FDD. For software vendors, this represents a compact but centralized opportunity. With no franchisee layer, a single sale to the headquarters team can cover the entire system. The absence of reported year-over-year unit growth suggests a stable footprint, meaning the primary software opportunity lies in replacing or supplementing existing systems rather than equipping new locations.
The brand operates without a parent company, appearing independently owned. No operator footprint is mapped in our corpus, reinforcing that all operational control flows directly from the corporate office. The royalty rate is 5.0% on gross sales, and the initial franchise term is 10 years. Average unit volume is not disclosed in the most recent FDD.
Purchasing authority is concentrated at the headquarters level. The FDD lists two key executives: Xing Yan (“Eddie”) Zheng, the Chief Executive Officer, and Richard Xu, the Chief Financial Officer. In a system of this size, these individuals are likely the primary decision-makers for any technology investment. There is no CIO or CTO named in the filing, which means the CEO and CFO likely evaluate software directly or delegate to a small operations team. Vendors should prepare to speak to both operational efficiency and financial controls, as the CFO’s involvement signals a strong emphasis on cost and compliance.
Because all 10 units are company-owned, there is no need to navigate a franchisee approval process. A successful pitch to the HQ team translates into immediate, system-wide adoption.
The 2026 FDD explicitly mandates a “Technology System” for all restaurants. This is a significant signal for software vendors: the franchisor has already established that a standardized tech stack is non-negotiable. However, the specific vendor or platform name is not disclosed in the FDD extract. This gap presents both a challenge and an opportunity. The incumbent system is unknown, but the mandate confirms that the brand is willing to enforce technology standards from the top down.
Vendors should approach the initial conversation as a discovery process. The mandated system could encompass point-of-sale, back-office, or operational tools. Given the quick-service format, speed and throughput are likely priorities. Any proposed solution must demonstrate how it integrates with or improves upon the existing mandated environment.
The FDD does not provide an Item 8 procurement signal in the available data, leaving the supply chain and purchasing model undefined. It is unclear whether the brand uses designated suppliers, approved suppliers, or an open procurement model. This lack of clarity means vendors should be prepared for any scenario, from a locked-down vendor list to a more flexible evaluation process.
Renewal conditions offer some insight into timing. The initial franchise term is 10 years, and renewal terms are 5 years. To qualify for renewal, a franchisee must provide notice between 180 and 365 days before expiration and must bring the restaurant into full compliance with then-current system standards, including a potential material remodel. While no franchised units currently exist, these provisions indicate that the brand is structured for future franchising. For now, with only company-owned locations, software evaluation cycles are not tied to franchise renewal calendars. Vendors should focus on the fiscal year or operational pain points that might trigger a search for new technology.
The 2026 Franchise Disclosure Document is the definitive source for understanding the legal and operational framework of this brand. Item 1 identifies the executives and ownership structure. Item 11 details the mandated technology system, though the vendor name is redacted or not specified in the extract. Item 17 outlines the renewal terms and conditions, which are critical for understanding long-term contractual windows. Because the brand has no franchised units, the FDD serves primarily as a pre-sale disclosure document, but it still provides the clearest picture of how the franchisor intends to control operations, including technology.
For vendors, the FDD confirms a centralized, mandate-driven technology environment with a small but fully addressable unit count. The next step is to identify the incumbent technology system and position a solution that aligns with the CEO and CFO’s priorities. Talk to FranCloud to build a ranked target list based on this and similar franchise system profiles.
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.
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FDD alert
We’ll email you the moment Nan Xiang Xiao Long Bao 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 213 management group.
Related Quick service restaurant brands
Primary franchise filings · updated June 2026. Every figure is source-traceable and QA-checked.