The vendor opportunity at Qdoba Restaurant
Qdoba reports 733 total locations — 447 franchised, 286 company-owned — with franchised outlets up 10.099% year over year in its 2023 FDD. Royalty runs 5.0% of sales on a 10-year term, and Item 19 makes a financial performance representation with average net sales of $1,497,754 across 277 franchisee-operated restaurants. The FDD names Modern Restaurant Concepts Holdings, LLC as its parent.
Who controls software purchasing
Item 11's computer-system mandate is set at the franchisor level. The FDD names Eric Rosenzweig as Chief Information Officer, alongside John C. Cywinski (CEO), Mel Tucker (CFO), Eric Williams (COO), and James D. Sullivan (Chief Development Officer).
Tech named in the FDD, and what is actually required
The current hardware standard is a Wi-Fi enabled iPad Air and a Dell Optiplex back-office file server running Windows 10 Professional, paired with a capacitive-touchscreen POS terminal running an approved PA-DSS version of POS software. Peripheral hardware, including EMV devices with point-to-point encryption for secure card transactions, is part of the same standard. Franchisees must also sign participation agreements and buy hardware or software from vendors the Company designates for its stored-value card programs. Franchisees must also install Qdoba's sales-reporting (polling) software and, at most sites, use the QRC Standardized Network from a Qdoba approved managed service provider.
Procurement, renewals, and timing
Qdoba runs an approved-supplier list; franchisees typically select from that list, and the Company and its affiliates are not themselves approved suppliers of any product necessary to run a Qdoba franchise. Required purchases and leases from approved suppliers run an estimated 50% to 90% of overall purchases in setting up a restaurant. The term is 10 years, with renewal available to franchisees not in default who remodel and meet other conditions — a natural point to revisit the hardware standard, alongside the system's 10.099% franchised-outlet growth.
How to read the Qdoba Restaurant FDD
The embedded PDF viewer below holds Qdoba's 2023 Franchise Disclosure Document in full. Talk to FranCloud for a ranked target list of franchise systems like this one.