ITEM 18: PUBLIC FIGURES We currently use the name, likeness, and endorsement of Du, Guan-Ling 38 (https://www.youtube.com/@crowndu) (the “Endorser”) to promote the Nap Tea franchise system. The Endors
From the filings
NAP TEA
Retail foodSoftware purchasing decisions at NAP TEA are controlled at the headquarters level by Chief Executive Officer and Managing Director Cheng Han Lin. The franchise currently mandates a Point-of-Sale (POS) System, though the specific vendor is not named in the 2025 FDD. The addressable market is extremely limited, with only 1 mapped operator across approximately 1 located unit.
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. It is a floor, not a total — the filing discloses one of the two headline fees.
4%+of gross sales (FY2025)
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
20 requirements the franchisor states in this filing, each in its own words; 6 explicit no's; 8 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
You are required to purchase and maintain a Point-of-Sale (“POS”) System approved by us, at an estimated initial cost of $2,000 to $3,000.
Does the franchisor have direct or independent electronic access to the franchisee's financial, sales or customer records?
YesFranchise agreement
Franchisor shall have unrestricted rights to monitor, audit, and review POS data and sales turnover from each Store.
How the franchisor buys
Is the franchisor or an affiliate itself a supplier of required products, services or systems?
YesItem 8
You must purchase all proprietary teas, syrups, fruit jams, toppings, and other raw materials used to produce Nap Tea products from us, our parent company, or another supplier that we designate.
Does the franchisor reserve the right to change designated suppliers or systems at any time?
YesItem 17
We may revise the Manual, 14.2 issue supplemental directives, or update specifications and standards to reflect changes in the system, operational requirements, or legal compliance obligations.
Does the franchisor or an affiliate receive rebates, commissions or other revenue from designated or approved suppliers?
YesItem 8
Nap Tea-Taiwan, however, derives a substantial portion of its revenue from the sale of proprietary raw materials, branded items, and other required supplies purchased by Nap Tea franchisees worldwide.
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?
21Item 8
During ongoing operations, these required purchases typically account for 21% to 26% of a franchisee’s average monthly operating expenses.
Can a franchisee propose a new supplier for the franchisor's approval?
YesItem 8
If you wish to purchase products from a non-designated supplier, you must submit a written request to us and provide samples or documentation sufficient to establish conformity with our standards.
Communications
Does the franchisor own or control the business telephone numbers, or take them over when the agreement ends?
YesItem 17
You must also transfer or forward the telephone number(s) previously used in connection with your franchised business as directed by us
Franchise management
Does the franchisor conduct periodic inspections, audits or evaluations of the franchised business?
YesFranchise agreement
Franchisor shall have the unrestricted right to dispatch its personnel or agents to any Store or ancillary facility within the Subfranchise Area at any time during business hours, with or without notice.
Can the franchisor change the operations manual and brand standards unilaterally?
YesItem 11
We may revise the Manual periodically, and you must comply with all modifications.
Must the franchisor approve the franchisee's site or location before opening?
YesItem 11
While we do not typically pre-select sites, we must consent to your proposed location before it may be established as a Nap Tea Master Franchise Outlet.
Operations
Must the franchisee buy products from a designated distributor?
YesItem 8
You must purchase all proprietary teas, syrups, fruit jams, toppings, and other raw materials used to produce Nap Tea products from us, our parent company, or another supplier that we designate.
Must equipment be purchased from designated or approved suppliers?
YesItem 8
You and your Subfranchisees must purchase and use only those fixtures, equipment, food preparation and storage devices, display cases, cash registers, computer systems, supplies, storefront designs, and signage that we have approved in writing.
People
Does the franchisor require minimum staffing levels or specific roles?
YesItem 15
Because the Manager must devote full-time efforts during normal business hours and, if you are an entity, must be a Principal Equity Owner holding at least fifty percent (50%) of the ownership interests
Must employees wear uniforms specified by the franchisor?
YesItem 8
You must also purchase uniforms, branded packaging (such as cups and
Point of sale
Must the franchisee use a specific point-of-sale system designated or approved by the franchisor?
YesItem 11
You are required to purchase and maintain a Point-of-Sale (“POS”) System approved by us, at an estimated initial cost of $2,000 to $3,000.
Does the franchisor have independent access to the data in the franchisee's POS or computer system?
YesFranchise agreement
Franchisor shall have unrestricted electronic access to the POS system and its data.
Sales and CRM
Must the franchisee use a CRM system designated or approved by the franchisor?
YesItem 11
You are required to purchase and maintain a Point-of-Sale (“POS”) System approved by us, at an estimated initial cost of $2,000 to $3,000.
Training
Can the franchisor charge the franchisee for additional, refresher or remedial training?
YesFranchise agreement
We may require you, your designated Manager, or your staff to attend refresher courses, seminars, conventions, or training conferences that we conduct during the term of this Agreement.
Is attendance at an annual convention or conference mandatory for the franchisee?
YesItem 11
Attendance by at least one Principal Equity Owner at each such conference or convention will be mandatory, and we strongly recommend that other Principal Equity Owners attend.
The filing answers no to 6 questions
- Is there a franchisee advisory council, association or committee?Item 20
- Is the franchisee prohibited from operating its own website or social media accounts, or required to use pages the franchisor provides?Item 13
- Is a minimum grand opening advertising spend required?Item 11
- 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
- Must the franchisee use a payment processor or merchant-services provider designated or approved by the franchisor?Item 7
The vendor opportunity at NAP TEA
NAP TEA is a retail food franchise headquartered in Delaware. For software vendors, the immediate opportunity is exceptionally small. The operator footprint consists of just 1 mapped operator across approximately 1 located unit, with a top state presence in Wisconsin. This is not a multi-unit landscape; the data shows zero operators in the 2-9, 10-24, or 25+ unit bands. Total units, franchised versus company-owned counts, and year-over-year unit growth are not disclosed in the most recent FDD. The royalty rate is 4.0%, and the initial franchise term is 5 years. Average unit volume (AUV) is also not disclosed. Vendors should approach this as a single-location account with a centralized purchasing model.
Who controls software purchasing
All software purchasing authority appears to rest with a single individual. The only executive listed in the FDD is Cheng Han Lin, who serves as Chief Executive Officer and Managing Director. There is no CIO, CTO, or VP of Operations on file. For a vendor, this means the sales cycle is direct and singular: you are pitching one person who holds both strategic and operational control. The franchise is independently owned, with no parent company on file, so there is no larger enterprise hierarchy to navigate. This concentration of decision-making can shorten the sales cycle but also means there is no secondary champion to influence the process.
Mandated and current tech stack
The 2025 FDD mandates a Point-of-Sale (POS) System for franchisees. The document references this requirement twice, underscoring its importance to operations. However, the specific vendor or system name is not disclosed. This creates a clear opening for POS vendors to inquire about the current solution and potentially offer an alternative. Beyond the POS mandate, no other operational, accounting, inventory, or HR systems are mentioned as required or recommended. The technology landscape appears lean, which is consistent with a very small franchise system. A vendor selling complementary tools—such as scheduling, loyalty, or reporting software that integrates with a POS—should be prepared to discover the incumbent during the discovery call.
Procurement, renewals, and timing
The procurement model is a blank slate based on available data. No extract from Item 8 of the FDD was provided, meaning it is unknown whether NAP TEA uses designated suppliers, maintains an approved vendor list, or allows franchisees to purchase from any source. This lack of a formal procurement signal suggests a less structured buying process, which can be an advantage for vendors who can articulate clear value directly to the CEO.
The renewal cycle offers a potential timing trigger. The initial franchise agreement runs for 5 years. A franchisee may renew for one additional 5-year term by providing written notice at least 90 days before the current term expires. Renewal is contingent on being in good standing and executing the then-current form of the agreement, which may contain updated terms. For a vendor, the period leading up to a renewal could be an opportunity to introduce new technology that helps a franchisee meet updated operational standards or improve unit economics before re-committing.
How to read the NAP TEA FDD
The 2025 Franchise Disclosure Document is the definitive source for understanding NAP TEA's legal, financial, and operational structure. Key items for software vendors include Item 11 (the franchisor's obligations) for the mandated POS requirement, Item 8 (restrictions on sources of products and services) for procurement rules, and Item 17 (renewal, termination, transfer) for contract cycle timing. The embedded viewer below contains the full filing. For a ranked target list of franchise systems that match your ideal customer profile, talk to FranCloud.
Questions vendors ask
NAP TEA, answered from the filing
Read the filing itself
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FDD alert
Tell me when this brand refiles.
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Operator footprint
Who runs the locations
1 operators run 1 mapped locations. 0 of them are multi-unit. Aggregate counts from the filing; no names.
Operators by units owned
Top states by locations
| WI | 1 |
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Related Retail food brands
Primary franchise filings · updated June 2026. Every figure is source-traceable and QA-checked.