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From the filings
HQ-led decisions
Rocky Mountain Chocolate Factory
Retail foodSoftware purchasing decisions at Rocky Mountain Chocolate Factory are driven by the HQ leadership team, notably Senior Vice President of IT Ryan R. McGrath. The franchise currently mandates only off-the-shelf bookkeeping software, leaving a wide-open landscape for other operational tools. With 152 total units and an average unit volume of $588,879, the addressable market is concentrated but presents a targeted opportunity for vendors offering specialized retail food solutions.
For software vendors selling into US franchise brands.
Live signals
Total units
152
150 franchised
Unit growth YoY
-2.597%
vs prior filing
AUV
$589K
Item 19, 2024
Royalty
5%
of gross sales
Ad fund
3%
national + local
Initial fee
$35K
per unit
Investment range
$267K–$825K
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.
8%of gross sales (FY2024)
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.
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, media advertising, direct mailings, brochures, collateral material advertising, electronic advertising, such as websites, blogs and social media, including Facebook, Twitter and LinkedIn, communicat
TwitterX
e promotions, media advertising, direct mailings, brochures, collateral material advertising, electronic advertising, such as websites, blogs and social media, including Facebook, Twitter and LinkedIn
Franchisor behaviours
What the franchisor requires
25 requirements the franchisor states in this filing, each in its own words; 6 explicit no's; 3 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
The Franchisee shall establish and maintain at its own expense a bookkeeping and accounting system which conforms to the specifications which the Franchisor may prescribe from time to time, including specified off-the-shelf software that must be used to prepare all reports and financial statements submitted to the…
Must the franchisee submit periodic financial statements (monthly, quarterly or annual) to the franchisor?
YesFranchise agreement
The Franchisee shall supply to the Franchisor such reports in a manner and form as the Franchisor may from time to time reasonably require, including: a. Monthly summary reports, in a form as may be prescribed by the Franchisor, mailed to the Franchisor postmarked no later than the 15th day of the month and…
How the franchisor buys
Is the franchisor or an affiliate itself a supplier of required products, services or systems?
YesItem 8
We are the designated supplier of Durango Product.
Is there a franchisee advisory council, association or committee?
YesItem 11
We have formed a franchise advisory council (“FAC”) that advises RMCF on operations, advertising, training, systems, processes, programs and policies to improve the ROCKY MOUNTAIN CHOCOLATE FACTORY brand and franchise network.
Does the franchisor reserve the right to change designated suppliers or systems at any time?
YesItem 8
We may change our standards and specifications, or suppliers who have our authorization, at any time if we give you 30 days written notice in advance.
Does the franchisor or an affiliate receive rebates, commissions or other revenue from designated or approved suppliers?
YesFranchise agreement
The Franchisor and its affiliates may mark up and profit on the sale of goods and services to the Franchisee and/or receive payments, rebates, or other material consideration from suppliers on account of such suppliers’ dealings with the Franchisee and other franchise owners, and may use any amounts so received…
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?
38Item 8
We estimate that the costs of your purchases from designated or approved sources, or according to our standards and specifications will range from 80% to 84% of the total cost of establishing your Store and approximately 38% of the total cost of operating your Store after that time.
Does the franchisor charge a fee to evaluate a proposed supplier?
YesFranchise agreement
Either the Franchisee or the proposed supplier or distributor must pay the Franchisor a fee (not to exceed the reasonable cost of the inspection and the actual cost of the test) to make the evaluation.
Can a franchisee propose a new supplier for the franchisor's approval?
YesItem 8
If you propose to offer, conduct or utilize any products, services, materials, forms, items or supplies for sale or use in your ROCKY MOUNTAIN CHOCOLATE FACTORY Store from manufacturers, suppliers or distributors which we have not previously approved as meeting our specifications, you must first notify us in writing…
Communications
Does the franchisor own or control the business telephone numbers, or take them over when the agreement ends?
YesFranchise agreement
The Franchisee acknowledges that, as between the Franchisee and the Franchisor, the Franchisor has the sole rights to and interest in all telephone numbers, domain names and electronic mail addresses associated with any Mark.
Data and IT
Must the franchisee comply with PCI, data-security or cybersecurity standards set by the franchisor?
YesFranchise agreement
The Franchisor also reserves the right to require the Franchisee to purchase, install and implement computer data security hardware and 7 ACTIVE 699052172v1 software, firewall protection and data security breach insurance that meets the Franchisor’s standards and specifications or from the Franchisor’s designated…
Franchise management
Does the franchisor conduct periodic inspections, audits or evaluations of the franchised business?
YesFranchise agreement
The Franchisor reserves the right to use third party shopping services from time to time to evaluate the conduct of the Franchisee’s ROCKY MOUNTAIN CHOCOLATE FACTORY Store, including such things as customer service, cleanliness, merchandising and proper use of registers.
Can the franchisor change the operations manual and brand standards unilaterally?
YesFranchise agreement
The Franchisor reserves the right to revise the Operations Manual from time to time as it deems necessary to update or change operating and marketing techniques, standards, specifications and rules for all components of the Licensed Methods and approved Durango Product, Items and Store Product offered by Stores.
Must the franchisor approve the franchisee's site or location before opening?
YesItem 11
You must submit and receive our approval of an acceptable site and open your Store within 180 days after the Effective Date, or we may terminate the Franchise Agreement
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 not permitted to create your own website or sell products over an internet site that is not sponsored by us.
Must the franchisee participate in a customer loyalty or rewards program?
YesItem 8
You must participate in our gift card program, referred to as the “Gift Card Program” in this Disclosure Document.
Must the franchisee participate in a regional advertising cooperative when one exists?
YesItem 11
If we establish a Co-op during the term of the Franchise Agreement, you must become a member within 30 days after we establish the Co-op.
Operations
Must the franchisee buy products from a designated distributor?
YesItem 8
You must purchase all of the Durango Product, ingredients for Store Made Product and other Items that you sell at or through your ROCKY MOUNTAIN CHOCOLATE FACTORY Store from us or a source we designate.
Must equipment be purchased from designated or approved suppliers?
YesItem 8
You must purchase display cabinets, cooking equipment, storage fixtures, refrigeration equipment, and all other fixtures and furnishings in your Store from suppliers designated or approved by us.
Payments
Are royalties and other fees collected by automatic bank debit (ACH or electronic funds transfer) from the franchisee's account?
YesFranchise agreement
The Franchisor requires that Royalty payments, applicable late charges, the Marketing and Promotion Fee and applicable late charges (as set forth in Section 4.6 above) be made by means of electronic funds transfer and the Franchisee agrees to provide the information necessary to implement transfer payments by…
Must the franchisee participate in a gift card program?
YesItem 8
You must participate in our gift card program, referred to as the “Gift Card Program” in this Disclosure Document.
People
Must employees wear uniforms specified by the franchisor?
YesFranchise agreement
All General Managers, employees of the Franchisee, the Franchisee and its owners shall wear the specified apparel at all times while working at the Franchised Location.
Point of sale
Must the franchisee use a specific point-of-sale system designated or approved by the franchisor?
YesItem 8
You must purchase your POS System from a designated or approved supplier.
Training
Can the franchisor charge the franchisee for additional, refresher or remedial training?
YesFranchise agreement
The Franchisor may also, from time to time, offer non-mandatory training courses for which it reserves the right to charge certain fees for registration and/or tuition.
Is attendance at an annual convention or conference mandatory for the franchisee?
YesItem 11
Besides attending these courses, you must attend an annual meeting of all ROCKY MOUNTAIN CHOCOLATE FACTORY Store franchisees at a location we designate, if we organize and plan (at our option) an annual meeting.
The filing answers no to 6 questions
- Does the franchisor have direct or independent electronic access to the franchisee's financial, sales or customer records?Item 11
- Must the franchisee participate in a customer-satisfaction or net-promoter survey program?Item 11
- Is a minimum grand opening advertising spend required?Franchise agreement
- 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
- Does the franchisor require minimum staffing levels or specific roles?Franchise agreement
- Does the franchisor have independent access to the data in the franchisee's POS or computer system?Item 11
The vendor opportunity at Rocky Mountain Chocolate Factory
Rocky Mountain Chocolate Factory operates a network of 152 locations, 150 of which are franchised. The brand generated an average unit volume (AUV) of $588,879 in its most recent disclosure. For software vendors, the immediate addressable market is these 150 franchised units, though the brand's year-over-year unit growth contracted by 2.6%. This contraction signals a franchise system that may be focused on operational efficiency and cost control, a context where software that demonstrably improves margins or simplifies compliance can gain traction.
The franchise is independently owned, with no parent company on file. This flat organizational structure means the buying center is concentrated at the corporate headquarters in Colorado. The operator footprint is extremely fragmented; the FDD maps only one operator, who controls a single unit in Wisconsin. With no multi-unit operators of scale, a land-and-expand strategy through franchisee influence is not viable. Your sales motion must be directed entirely at HQ.
Who controls software purchasing
The technology purchasing decision rests with the Senior Vice President of Information Technology, Ryan R. McGrath. As the named IT executive in the FDD, McGrath is the primary gatekeeper for any software evaluation. The executive suite also includes Interim CEO Jeffrey R. Geygan and Board Chair Starlette B. Johnson, who oversee strategic and budgetary approvals. Marketing technology pitches would also need to engage Vice President of Marketing Kelsea Ferrato, while any tool impacting franchise development would fall under Vice President Kara Conklin. This is a small, centralized leadership team, meaning a single well-placed conversation can open the entire system.
Mandated and current tech stack
The 2024 FDD is notably sparse on technology mandates. The only system explicitly required for franchisees is off-the-shelf bookkeeping software. No specific point-of-sale, inventory management, loyalty, or workforce management vendors are named as mandatory. This represents a significant greenfield for vendors. The absence of a mandated POS system, in particular, suggests either a legacy, fragmented technology environment or an intentional flexibility granted to franchisees. Either scenario is an opening for a vendor that can articulate a clear standardization benefit to HQ.
Procurement, renewals, and timing
Procurement rules for technology are not disclosed in the available FDD extracts. The document does not describe a designated or approved supplier program, leaving the purchasing process opaque. However, the franchise agreement structure provides clear timing signals. The initial term is 10 years, and renewal terms are 5 years. Critically, the renewal conditions state that a franchisee must sign the then-current franchise agreement, which may contain materially different terms. This clause gives the franchisor significant leverage to introduce new technology mandates at each renewal window. Tracking franchisee cohorts by their initial agreement date can help you predict when pressure to adopt new systems will be highest.
How to read the Rocky Mountain Chocolate Factory FDD
The full 2024 Franchise Disclosure Document is embedded below. For software vendors, the most critical sections are Item 11, which details the franchisor's obligations regarding technology and the mandated bookkeeping requirement, and Item 1, which lists the executive team you will need to influence. Pay close attention to Item 17 for the precise renewal language, as the franchisor's ability to impose new contract terms is your primary lever for system-wide technology adoption. When you are ready to build a ranked list of franchise targets based on technology gaps and renewal timing, FranCloud can provide the data foundation.
Questions vendors ask
Rocky Mountain Chocolate Factory, answered from the filing
The key technology decision-maker is Ryan R. McGrath, Senior Vice President - Information Technology. Interim CEO Jeffrey R. Geygan and the board, chaired by Starlette B. Johnson, likely hold final budgetary authority.
The 2024 FDD mandates only off-the-shelf bookkeeping software. No specific point-of-sale, inventory, or operational technology vendors are named as required for franchisees.
There are 152 total units, consisting of 150 franchised locations and 2 company-owned stores. This represents a slight year-over-year unit decline of 2.6%.
The procurement model is not explicitly detailed in the available FDD extracts. The document does not specify a designated or approved supplier structure for technology or other goods.
Initial franchise terms are 10 years. Renewals are for 5 years and require signing the then-current agreement, which may have materially different terms. This creates potential re-evaluation points at each renewal cycle.
The 2024 FDD was filed with state franchise regulators. You can review the full document in the embedded PDF viewer below to analyze all Item 11 technology disclosures and executive details directly.
Source
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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
Single-unit1
Top states by locations
| WI | 1 |
|---|
Related Retail food brands
Primary franchise filings · updated June 2026. Every figure is source-traceable and QA-checked.