ToastToast
MandatoryIn order to use this software, you must pay a fee to the designated vendor and such fee may be modified in our designated vendor’s sole discretion. Currently, you are required to use Toast for your PO
From the filings
+86.207% units YoYHQ-led decisions
Parlor Doughnuts
Quick service restaurantSoftware purchasing at Parlor Doughnuts is controlled at the HQ level, with Founder/CEO Darrick Hayden and CFO Nicole Hunsaker as the likely decision-makers. The 2025 FDD discloses no mandated POS or operational software—only food distributor Sysco is mandated—leaving the tech stack largely open. With 63 locations and 86% year-over-year unit growth, the addressable market is small but rapidly expanding.
For software vendors selling into US franchise brands.
Live signals
Total units
63
54 franchised
Unit growth YoY
+86.207%
vs prior filing
AUV
$855K
Item 19, 2024
Royalty
5%
of gross sales
Ad fund
1%
national + local
Initial fee
$40K
per unit
Investment range
$457K–$838K
all-in, Item 7
Procurement
Approved supplier
from the filing
Item 19
Claims
from the filing
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.
6%of gross sales (FY2025)
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.
SyscoSysco
the number of approved vendors and/or suppliers that you may purchase from and we may designate one vendor as your sole supplier. Presently, we have entered into an agreement with Sysco Louisville, In
Franchisor behaviours
What the franchisor requires
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?
YesItem 7
You must also use the designated software for use in the operation of the franchised business and update it as required by us from time to time, including, but not limited to, the POS system, loyalty reward program, gift card program, and on-line ordering program.
Does the franchisor have direct or independent electronic access to the franchisee's financial, sales or customer records?
YesItem 8
Parlor will have independent access to the information stored only on your POS system.
Must the franchisee submit periodic financial statements (monthly, quarterly or annual) to the franchisor?
YesFranchise agreement
B. Financial Statements Franchisee shall deliver to Franchisor, no later than the first day of second month following the end of each quarter, a balance sheet as of the last day of the preceding quarter and an income statement for the preceding quarter, along with any other sales data requested by Franchisor, in the…
How the franchisor buys
Is the franchisor or an affiliate itself a supplier of required products, services or systems?
YesItem 8
Parlor, our affiliates, and Approved Suppliers are the exclusive supplier of certain branded products such as t-shirts, mugs, and fabricated items.
Does the franchisor reserve the right to change designated suppliers or systems at any time?
YesFranchise agreement
Franchisor has the right to issue new standards and specifications through written notices and may review its prior approval of any goods, services, equipment, or suppliers in its sole discretion and as it sees fit.
How much revenue did the franchisor and its affiliates earn from franchisee purchases in the last fiscal year?
984879Item 8
In the year ending on December 31, 2024, revenue from the sale of these products was $984,879, or 25% of Parlor’s total revenue.
Does the franchisor or an affiliate receive rebates, commissions or other revenue from designated or approved suppliers?
YesItem 8
We may derive revenue as a result of your and other franchisees purchasing the required products, supplies, equipment, materials, services, and other items from us, our affiliates, or Approved Suppliers.
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?
85Item 8
Once you begin operating, we expect the items you are required to purchase will represent approximately 85% to 90% of your total expenses.
Can a franchisee propose a new supplier for the franchisor's approval?
YesItem 8
You may request to obtain approval for a new supplier, good, service, or piece of equipment by submitting such request, including the basis for the request, via email to franchising@parlordoughnuts.com.
Communications
Does the franchisor own or control the business telephone numbers, or take them over when the agreement ends?
YesFranchise agreement
take such action as may be necessary to transfer all phone numbers for the Franchised Business to the Franchisor
Franchise management
Does the franchisor conduct periodic inspections, audits or evaluations of the franchised business?
YesItem 11
We may conduct an annual post-opening inspection of the franchised business, at our expense, to determine compliance with our standards and specifications.
Can the franchisor change the operations manual and brand standards unilaterally?
YesFranchise agreement
Franchisor has the right to add to or otherwise modify the Confidential Operations Manual from time to time to reflect changes in the specifications, standards, operating procedures, and rules prescribed by Franchisor
Must the franchisor approve the franchisee's site or location before opening?
YesItem 11
We must approve the location before you sign a purchase agreement or 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
You are restricted from establishing a presence on, or marketing on the Internet without our consent.
Is a minimum grand opening advertising spend required?
YesItem 7
You are required to spend the minimum amount listed above, but you may spend more than that if you choose to do so.
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
You are required to conduct local advertising and to spend one percent (1%) of monthly Gross Sales of the franchised business on such advertising and community support, including product donations.
Must the franchisee participate in a customer loyalty or rewards program?
YesItem 8
You are required to use the designated software for use in the operation of the franchised business and update such software as required by us from time to time, including, but not limited to, the POS system, loyalty reward program, gift card program, and on-line ordering program.
Operations
Must the franchisee buy products from a designated distributor?
YesItem 8
To maintain quality and consistency, we require that you purchase these items, as referenced in the Confidential Operations Manual, from designated suppliers approved by us, which may include and be limited to us or our affiliates.
Must equipment be purchased from designated or approved suppliers?
YesItem 8
To maintain quality and consistency, we require that you purchase these items, as referenced in the Confidential Operations Manual, from designated suppliers approved by us, which may include and be limited to us or our affiliates.
Payments
Must the franchisee use a payment processor or merchant-services provider designated or approved by the franchisor?
YesItem 11
Currently, you are required to use Toast for your POS and payment processor.
Are royalties and other fees collected by automatic bank debit (ACH or electronic funds transfer) from the franchisee's account?
YesFranchise agreement
Franchisor requires all Royalty Fees, Marketing Fund contributions, Consulting Assistance Fee, and other amounts due to Franchisor to be paid through EFT.
Must the franchisee participate in a gift card program?
YesItem 8
You are required to use the designated software for use in the operation of the franchised business and update such software as required by us from time to time, including, but not limited to, the POS system, loyalty reward program, gift card program, and on-line ordering program.
Point of sale
Must the franchisee use a specific point-of-sale system designated or approved by the franchisor?
YesItem 11
Currently, you are required to use Toast for your POS and payment processor.
Does the franchisor have independent access to the data in the franchisee's POS or computer system?
YesItem 8
Parlor will have independent access to the information stored only on your POS system.
Training
Can the franchisor charge the franchisee for additional, refresher or remedial training?
YesItem 11
We provide you and/or your employees with additional in-person, video, and on-line training sessions as needed at our headquarters, the franchised business, or at another location designated by us.
The filing answers no to 3 questions
- Is there a franchisee advisory council, association or committee?Item 11
- Does the franchisor require minimum staffing levels or specific roles?Item 11
- Is attendance at an annual convention or conference mandatory for the franchisee?Item 6
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 franchisor's owner/CEO decides; an ops or franchise-development lead may evaluate.
VP SalesHead of SalesCROSales Director
- 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%.
- 82.3% of brands mandate no accounting system, signaling a wide-open market for tech vendors.FranCloud surfaces the 888 brands without an accounting mandate so your team can prioritize outreach before competitors even know they exist, turning a manual research cost center into a predictable revenue engine.
- 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.
The vendor opportunity at Parlor Doughnuts
Parlor Doughnuts is a quick-service restaurant chain specializing in layered doughnuts and breakfast fare. With 63 total units (54 franchised, 9 company-owned) and an 86% year-over-year unit growth rate, it is one of the faster-scaling concepts in the QSR space. The average unit volume sits at $855,420, and the royalty rate is 5%. For software vendors, the key takeaway is that the 2025 FDD mandates no point-of-sale, back-office, or operational software—only food distributor Sysco is a required vendor. This creates a wide-open opportunity to pitch solutions that can support rapid expansion.
Who controls software purchasing
The FDD lists five HQ executives: Founder/CEO Darrick Hayden, Founder Josh Tudela, CFO Nicole Hunsaker, Brand & Product Development Officer Jennifer Hayden, and Chief Development Officer Paul Bair. No chief information or technology officer is named, indicating that technology decisions likely flow through the CEO and CFO. The operator base consists of 51 mapped operators, 16 of whom are multi-unit, but none operate more than 9 locations. With no large franchisee groups and a lean HQ team, purchasing authority is centralized. Vendors should direct their outreach to Darrick Hayden and Nicole Hunsaker, framing ROI in terms of operational efficiency and scalability.
Mandated and current tech stack
The only mandated vendor disclosed in the FDD is Sysco, a food distribution company. No POS, payroll, scheduling, inventory, or loyalty platform is required or recommended. This absence is notable for a chain growing at 86% annually; it suggests that either the franchisor has not yet standardized technology or that franchisees select their own tools. For software vendors, this represents a greenfield: you can propose a full stack or a point solution without having to displace an entrenched incumbent. However, the lack of a mandate also means that sales cycles may require convincing both the franchisor and individual franchisees, depending on the procurement model.
Procurement, renewals, and timing
The FDD does not include an Item 8 procurement extract, so the formal supplier approval process is not publicly documented. This could mean the franchisor uses an open model, or it may simply not have formalized technology procurement yet. Franchise agreements have a 10-year initial term and a 5-year renewal term, with renewal requiring a fee equal to 50% of the then-current initial franchise fee. While these cycles don’t directly dictate software contracts, they create natural inflection points: new franchisees signing on will need systems from day one, and renewals may prompt a review of existing tools. With 86% unit growth, many locations are in their first year, making now an ideal time to engage.
How to read the Parlor Doughnuts FDD
The full 2025 Franchise Disclosure Document is available below. It was filed with state franchise regulators and contains detailed financial performance representations, the franchise agreement, and the list of current and former franchisees. For software vendors, the most relevant sections are Item 11 (franchisor’s assistance, advertising, computer systems, and training) and Item 8 (restrictions on sources of products and services). In this FDD, Item 11 does not mandate specific computer systems, and Item 8 was not extracted, so direct inquiry with HQ is advisable. Use the embedded viewer to search for key terms like “POS,” “software,” or “technology” to confirm the current state.
For a ranked target list of franchise systems based on tech-stack openness, growth rate, and decision-maker accessibility, FranCloud can help.
Questions vendors ask
Parlor Doughnuts, answered from the filing
The buying center includes Founder/CEO Darrick Hayden and CFO Nicole Hunsaker. No dedicated IT or technology leadership is listed in the FDD, so pitches should target these executives.
The 2025 FDD mandates no POS or operational software. The only required vendor is Sysco for food distribution. All other technology choices appear to be open.
As of the 2025 FDD, there are 63 total units (54 franchised, 9 company-owned), concentrated in Texas, Indiana, Florida, Missouri, and Kentucky.
The FDD does not disclose a designated or approved supplier program for technology. Without Item 8 procurement details, the model is likely open, but vendors should verify with HQ.
Franchise agreements run for 10 years with 5-year renewals. With 86% unit growth, many locations are new, so software decisions may be made during initial setup or at renewal inflection points.
The 2025 FDD is filed with state franchise regulators. You can view the full document in the embedded PDF viewer below this page.
Source
Read the filing itself
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FDD alert
Tell me when this brand refiles.
We’ll email you the moment Parlor Doughnuts files a new annual FDD, usually the freshest signal of a vendor change.
Operator footprint
Who runs the locations
42 operators run 51 mapped locations. 7 of them are multi-unit. Aggregate counts from the filing; no names.
Operators by units owned
Single-unit35
2–9 units7
Top states by locations
| FL | 9 |
|---|---|
| TX | 8 |
| IN | 8 |
| MO | 3 |
| KY | 3 |
Related Quick service restaurant brands
Primary franchise filings · updated August 2026. Every figure is source-traceable and QA-checked.