supplier. The agreement provided us with an initial bonus and provides us with new outlet support funds when new locations open. There is currently one purchasing arrangement with Sysco where Sysco is
From the filings
NHC Franchise
Quick service restaurantNHC Franchise operates 8 franchised quick-service units in California, led by a five-person headquarters team. The 2026 FDD's one named vendor mandate is Sysco, a food-distribution requirement rather than a software one, and unit count fell 11.1% year over year. This is a small, contracting system with no software mandate signal yet on record.
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.
7%of gross sales (FY2026)
15% reference
Mandated & recommended tech
The systems vendors compete with
1 of these are mandated in the franchise agreement. Each is named in Item 11 of the filing, the incumbents a challenger must displace or integrate with.
Franchisor behaviours
What the franchisor requires
30 requirements the franchisor states in this filing, each in its own words; 4 questions the text does not settle, which is not a no.
Accounting
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
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
How the franchisor buys
Is the franchisor or an affiliate itself a supplier of required products, services or systems?
YesItem 8
We are currently designated as an approved supplier of certain branded items, merchandise and select seasonings and food products.
Does the franchisor reserve the right to change designated suppliers or systems at any time?
YesItem 8
We may designate a supplier, including ourselves or our affiliates, as the exclusive supplier for the System.
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 revenue in rebates from approved suppliers related to franchisee purchases.
Does the franchisor or an affiliate receive rebates, commissions or other revenue from designated or approved suppliers?
YesItem 8
The agreement provides us with rebates based on franchisee purchases of select ingredient and menu items.
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?
30Item 8
approximately 30% of your total purchases in establishing your Restaurant and approximately 30% of your total purchases in the continuing operations of your Restaurant.
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
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 Agreement and without prior notice to Franchisee to inspect, evaluate, and secret shop Franchisee’s Restaurant.
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 Operations Manual.
Must the franchisor approve the franchisee's site or location before opening?
YesItem 11
Although you are responsible for selecting a site for your Restaurant Location you must obtain our approval of your Restaurant 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 $3,000 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 and monthly basis, you must spend not less than 1% of your monthly Gross Sales on the local marketing of your Restaurant.
Must the franchisee participate in a customer loyalty or rewards program?
YesFranchise agreement
participate in, offer, redeem, and honor, without the offset to any fees due to Franchisor, all Gift Card and customer loyalty programs designated by Franchisor
Must the franchisee participate in a regional advertising cooperative when one exists?
YesItem 11
If we establish a cooperative within a market that includes your Restaurant you must contribute to the cooperative in such amounts and frequency as determined by the 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
You will be required to sign an ACH Authorization Form (Franchise Agreement, Exhibit 7) permitting us to electronically debit your designated bank account for payment of all fees payable to us and/or our affiliates.
Must the franchisee participate in a gift card program?
YesFranchise agreement
issue, sell, redeem, honor, and accept, without the offset to any fees due to Franchisor, all Gift Cards designated by Franchisor and participate in, offer, redeem, and honor, without the offset to any fees due to Franchisor, all Gift Card and customer loyalty programs designated by Franchisor
People
Does the franchisor require minimum staffing levels or specific roles?
YesItem 15
At all times, your Restaurant 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
For the protection of the System, 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 Toast 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?
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;
Sales and CRM
Must the franchisee use a CRM system designated or approved by the franchisor?
YesFranchise agreement
“Business Management System” means the software, internet, web based and/or cloud based system or systems, point of sale system or systems and customer relationship management system or systems as same may be individually or collectively designated by us, in our Reasonable Business Judgment, as being required for use…
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.
Is attendance at an annual convention or conference mandatory for the franchisee?
YesFranchise agreement
Franchisee shall be required to pay to Franchisor an Annual Conference Attendance Fee.
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 NHC Franchise
NHC Franchise is an 8-unit, fully franchised quick-service brand headquartered in California. Item 19 makes no financial performance representation, and unit count fell 11.1% year over year against a 5% royalty over a 10-year initial term — a small system currently contracting.
Who controls software purchasing
Item 2 names CEO Tigran Melkonyan, Training and Development Manager Samuel Melkonyan, Franchise Trainee Support lead Yurida Michelle Grageda, Franchise Sales Director Kody Keshishi, and Marketing Director Joseph Javahiryan. The filing's one named vendor mandate, Sysco, covers food distribution rather than software.
Tech named in the FDD, and what is actually required
Item 8 mandates Sysco for food distribution — the only vendor named in NHC Franchise's filing.
Procurement, renewals, and timing
Item 8 designates suppliers only: System Supplies and any branded or marketing materials must come from NHC Franchise, its affiliates, or its designated suppliers, though franchisees may propose an alternative supplier for approval. Item 17 offers one additional 10-year term gated on 180 days' notice, a remodel and upgrade, owner guarantees and a renewal fee — often a point where a contracting system reconsiders vendor relationships.
How to read the NHC Franchise FDD
The 2026 FDD was filed with state franchise regulators. Use the embedded PDF viewer below to review Items 2, 8, 17 and 19 directly. Talk to FranCloud for a ranked list of similar targets.
Questions vendors ask
NHC Franchise, 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 NHC Franchise files a new annual FDD, usually the freshest signal of a vendor change.
Operator footprint
Who runs the locations
18 operators run 18 mapped locations. 0 of them are multi-unit. Aggregate counts from the filing; no names.
Operators by units owned
Top states by locations
| CA | 6 |
|---|---|
| NJ | 2 |
| AZ | 1 |
| MO | 1 |
| IL | 1 |
Related Quick service restaurant brands
Primary franchise filings · updated September 2026. Every figure is source-traceable and QA-checked.