From the filings

HQ-led decisions

Schlotzsky's Franchisor

Quick service restaurant

Schlotzsky's, part of the GoTo Foods portfolio alongside Cinnabon and Auntie Anne's, requires every restaurant to run a designated POS System and Learning Management System under Items 8 and 11 of the 2026 FDD. CEO Omer Gajial leads a 294-restaurant chain whose 201 traditional franchises with a drive-thru averaged $1,157,190 in Item 19 net sales.

For software vendors selling into US franchise brands.

Live signals

Total units
294
267 franchised
Unit growth YoY
-4.643%
vs prior filing
AUV
$1.16M
Item 19, 2025
Royalty
6%
of gross sales
Ad fund
4%
national + local
Initial fee
$36K
per unit
Investment range
$675K–$1.46M
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.

10%of gross sales (FY2026)

Ongoing fees: 10% of gross sales (FY2026)Royalty 6%, Ad fund 4%. Total 10% of gross sales. Drawn against a 15% reference scale.

15% reference

Royalty 6%Ad fund 4%

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.

Apple PayApple
PaymentsItem 8

filiates, or designated Approved Suppliers. We require you to accept major credit cards (Visa, MasterCard, American Express, and Discover) and other major payment methods (such as Apple Pay and Google

DoorDashDoorDash
DeliveryItem 6

ding delivery fees and other service charges, that are paid to you by a customer or by a third-party delivery or catering service (e.g., Uber Eats, Postmates, Grubhub, ezCater, or DoorDash) (a “TPS”)

ezCaterezCater
DeliveryItem 6

fees, including delivery fees and other service charges, that are paid to you by a customer or by a third-party delivery or catering service (e.g., Uber Eats, Postmates, Grubhub, ezCater, or DoorDash)

FacebookMeta
MarketingItem 11

, photographs, give-away items, and gift cards. Digital Marketing. We or our affiliates, in our sole discretion, may establish and operate websites, social media accounts (such as Facebook, X, Instagr

Google PayGoogle
PaymentsItem 8

esignated Approved Suppliers. We require you to accept major credit cards (Visa, MasterCard, American Express, and Discover) and other major payment methods (such as Apple Pay and Google Pay) for cust

GrubhubGrubhub
DeliveryItem 6

harges or fees, including delivery fees and other service charges, that are paid to you by a customer or by a third-party delivery or catering service (e.g., Uber Eats, Postmates, Grubhub, ezCater, or

InstagramMeta
MarketingItem 11

, give-away items, and gift cards. Digital Marketing. We or our affiliates, in our sole discretion, may establish and operate websites, social media accounts (such as Facebook, X, Instagram, Pinterest

PinterestPinterest
MarketingItem 11

items, and gift cards. Digital Marketing. We or our affiliates, in our sole discretion, may establish and operate websites, social media accounts (such as Facebook, X, Instagram, Pinterest, Snapchat,

PostmatesUber
DeliveryItem 6

ancillary charges or fees, including delivery fees and other service charges, that are paid to you by a customer or by a third-party delivery or catering service (e.g., Uber Eats, Postmates, Grubhub,

SnapchatSnapchat
MarketingItem 11

gift cards. Digital Marketing. We or our affiliates, in our sole discretion, may establish and operate websites, social media accounts (such as Facebook, X, Instagram, Pinterest, Snapchat, YouTube, Ti

TikTokTikTok
MarketingItem 11

l Marketing. We or our affiliates, in our sole discretion, may establish and operate websites, social media accounts (such as Facebook, X, Instagram, Pinterest, Snapchat, YouTube, TikTok, etc.) , appl

Uber EatsUber
DeliveryItem 6

nclude all ancillary charges or fees, including delivery fees and other service charges, that are paid to you by a customer or by a third-party delivery or catering service (e.g., Uber Eats, Postmates

YouTubeGoogle
MarketingItem 11

s. Digital Marketing. We or our affiliates, in our sole discretion, may establish and operate websites, social media accounts (such as Facebook, X, Instagram, Pinterest, Snapchat, YouTube, TikTok, etc

Franchisor behaviours

What the franchisor requires

28 requirements the franchisor states in this filing, each in its own words; 2 explicit no's; 4 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?

Yes

Franchise agreement

You must: (i) comply with all our Standards on accounting systems, procedures, and formats, if any;

Does the franchisor have direct or independent electronic access to the franchisee's financial, sales or customer records?

Yes

Franchise agreement

In addition, we and our affiliates, through the Computer System or otherwise, have the right to independently access the Customer Information.

Must the franchisee submit periodic financial statements (monthly, quarterly or annual) to the franchisor?

Yes

Franchise agreement

On or before February 1st of each year (or such other date specified by us in the Manuals or otherwise in writing, which may be by email or other electronic communications), you must furnish to us a statement of the profit and loss of the Franchised Schlotzsky’s Deli Franchise Agreement 03 27 26 v1 34 1627742789.2…

How the franchisor buys

Is there a franchisee advisory council, association or committee?

Yes

Item 11

We do not have an advertising council composed of franchisees that is involved in decision making on advertising issues, but the Franchise Advisory Council (“FAC”) provides us suggestions on advertising issues.

Does the franchisor reserve the right to change designated suppliers or systems at any time?

Yes

Item 8

We may add or change Approved Suppliers at any time.

Does the franchisor or an affiliate receive rebates, commissions or other revenue from designated or approved suppliers?

Yes

Item 8

We and our affiliates may receive payments based on your purchases and leases, including, without limitation, from charging you for Goods we or our affiliates provide to you and from promotional allowances, volume discounts, and other payments made to us by Suppliers, distributors, or third parties.

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?

85

Item 8

Currently, we estimate that your purchases from Approved Suppliers and otherwise under our Standards will be about 80% of the total purchases and lease of products and services needed to establish the Restaurant and about 85% of the total purchases and leases of products and services needed to operate a Restaurant.

Does the franchisor charge a fee to evaluate a proposed supplier?

Yes

Item 8

You must pay us a charge not to exceed the reasonable cost of the inspection and our actual cost of testing the proposed Goods or evaluating the proposed Supplier, including personnel and travel costs, whether or not the Goods or Supplier is approved.

Can a franchisee propose a new supplier for the franchisor's approval?

Yes

Item 8

If you would like to offer products or use any Goods that we have not approved or to purchase or lease from a Supplier that we have not approved, you must submit a written request for approval and provide us with any information that we request.

Communications

Does the franchisor own or control the business telephone numbers, or take them over when the agreement ends?

Yes

Franchise agreement

Immediately take all action required (i) to cancel all assumed name or equivalent registrations relating to your use of the Marks and (ii) to cancel or transfer to us or our designee all authorized and unauthorized domain names, social media accounts, telephone numbers, post office boxes, and classified and other…

Data and IT

Must the franchisee comply with PCI, data-security or cybersecurity standards set by the franchisor?

Yes

Franchise agreement

You must abide by: (a) the Payment Card Industry Data Security Standards (“PCI-DSS”) enacted by the applicable Card Associations (as they may be modified from time to time or as successor standards are adopted) and all Laws, standards, or any equivalent thereof relating to the collection, use, and security of…

Franchise management

Must the franchisee participate in a customer-satisfaction or net-promoter survey program?

Yes

Franchise agreement

We also may require you to participate in customer satisfaction surveys or other audit programs, including electronically through the use of telecommunications devices or otherwise, to assess your compliance with our customer service standards.

Does the franchisor conduct periodic inspections, audits or evaluations of the franchised business?

Yes

Franchise agreement

We or any of our authorized agents may at any time during normal business hours (including pre-opening and post-closing) enter the Franchised Business or any other place where business related to the Franchised Business is conducted and: (i) conduct an operational audit to determine your material compliance, as we…

Can the franchisor change the operations manual and brand standards unilaterally?

Yes

Franchise agreement

We may make additions to, deletions from, and modifications to the Manuals (“Supplements”), Standards, or System from time to time in any form or fashion

Must the franchisor approve the franchisee's site or location before opening?

Yes

Item 11

You may not acquire the Accepted Location until we have accepted it.

Marketing

Is the franchisee prohibited from operating its own website or social media accounts, or required to use pages the franchisor provides?

Yes

Item 11

Unless we consent otherwise in writing, you may not, directly or indirectly, conduct or be involved in any Digital Marketing that use the Proprietary Marks or that relate to the Restaurant.

Is a minimum grand opening advertising spend required?

Yes

Item 11

Your Grand Opening Obligation is to spend at least $15,000 ($25,000 if your Restaurant is the first to open in a Designated Market Area) in grand opening advertising promoting the opening of your Restaurant between 90 days before you open the Restaurant and 90 days after you open the Restaurant.

Is the franchisee required to spend a minimum amount on local advertising or marketing, as a percentage of sales or a fixed amount?

Yes

Item 11

Currently, to satisfy your Local Marketing Obligation, each calendar quarter, you must spend on local market advertising at least 0.5% of the Net Sales of your Restaurant.

Must the franchisee participate in a customer loyalty or rewards program?

Yes

Item 16

You must participate in the Gift Card and Loyalty Programs that we establish,

Must the franchisee participate in a regional advertising cooperative when one exists?

Yes

Item 11

You must become a member of the LAG designated for the location of your Restaurant, if any, even if you are the sole member.

Operations

Must equipment be purchased from designated or approved suppliers?

Yes

Item 8

You must purchase these items only from an Approved Supplier, unless we specify otherwise.

Payments

Are royalties and other fees collected by automatic bank debit (ACH or electronic funds transfer) from the franchisee's account?

Yes

Item 6

We reserve the right to collect all fees due to us under the Franchise Agreement through EFT.

Must the franchisee participate in a gift card program?

Yes

Item 16

You must participate in the Gift Card and Loyalty Programs that we establish, and you must have available for sale to customers a sufficient number of gift cards to meet the demands of your Restaurant.

People

Does the franchisor require minimum staffing levels or specific roles?

Yes

Franchise agreement

Your Franchised Business must employ at least two Managers who have successfully completed the Management Training Program and are dedicated to the Franchised Business.

Point of sale

Must the franchisee use a specific point-of-sale system designated or approved by the franchisor?

Yes

Item 11

To maintain a consistent reporting system, you must purchase or lease and use a POS System specified by us from a designated Approved Supplier.

Does the franchisor have independent access to the data in the franchisee's POS or computer system?

Yes

Franchise agreement

In addition, we and our affiliates, through the Computer System or otherwise, have the right to independently access the Customer Information.

Training

Can the franchisor charge the franchisee for additional, refresher or remedial training?

Yes

Franchise agreement

We may charge you a reasonable fee for your representatives to attend any Additional Program, which currently ranges from $0 to $2,500 per attendee and may be increased in any calendar year by no more than the Allowed Adjustment.

Is attendance at an annual convention or conference mandatory for the franchisee?

Yes

Item 11

Your Primary Contact, Manager(s), Owners, and supervisory personnel must attend any conferences, conventions, programs, or additional or refresher training sessions that we specify.

The filing answers no to 2 questions
  • Is the franchisor or an affiliate itself a supplier of required products, services or systems?Item 8
  • Must the franchisee buy products from a designated distributor?Item 8

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.

Sales LeaderRegional 100 499

HQ leadership: CEO/President + VP Ops/Franchise + a first dedicated IT/systems owner.

VP SalesHead of SalesCROSales Director
  1. 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%.
  2. 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.
  3. 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 Schlotzsky's Schlotzsky's is a 294-restaurant quick-service system — 267 franchised, 27 affiliate-owned — part of the GoTo Foods portfolio alongside Auntie Anne's, Carvel, Cinnabon, Jamba, McAlister's, and Moe's. Franchised outlets fell 4.6% year over year. The 2026 FDD's Item 19 average net sales figure is $1,157,190 across the 201 traditional franchises with a drive-thru that reported sales in all 52 weeks of fiscal 2025; the 34 traditional franchises without a drive-thru averaged $1,042,298.

Who controls software purchasing CEO Omer Gajial, CFO Brett Ubl, and Chief Brand Officer Donna Josephson lead Schlotzsky's. Of 144 mapped operators across roughly 228 located units, 26 run more than one restaurant, including operators in the 10-24 and 25+ unit bands. The designated POS and Approved Supplier requirements apply uniformly regardless of operator size.

Tech named in the FDD, and what is actually required Item 11 requires franchisees to purchase or lease a POS System from a designated Approved Supplier, maintain it in good repair, and use Approved Suppliers for point-to-point encryption solutions that work with it. Franchisees must also buy a dedicated iPad or Windows tablet for the Learning Management System, dedicate a high-speed broadband connection to Schlotzsky's specifications for the Computer System, obtain POS System support and maintenance from Schlotzsky's or its affiliate under the POS System Support Services Agreement, and accept major credit cards and payment methods such as Apple Pay and Google Pay, participate in the Gift Card and Loyalty Programs, and participate in the in-shop mobile and online ordering program. Item 11 reserves Digital Marketing — websites and social media accounts such as Facebook, X, Instagram, Pinterest, Snapchat, YouTube and TikTok — to Schlotzsky's and its affiliates, and bars a franchisee from conducting any Digital Marketing using the Proprietary Marks unless Schlotzsky's consents in writing.

Procurement, renewals, and timing Item 8 sets an approved-supplier list: Proprietary Goods — ingredients, uniforms, signage, smallwares, and packaging — must come from Schlotzsky's, its affiliates, or designated Approved Suppliers, and Trademarked Product Lines and site-survey services follow the same rule when required. Franchisees may propose an alternate supplier for approval on other items. With franchised outlets down 4.6% year over year, ongoing POS and Approved Supplier refresh cycles are the more reliable timing signal than a single renewal date.

How to read the Schlotzsky's FDD The embedded PDF below is Schlotzsky's 2026 Franchise Disclosure Document. Read Item 2 for leadership, Item 8 for the Approved Supplier rules, Item 11 for the full POS and technology requirements, and Item 19 for the financial performance representation. Vendors evaluating this system should talk to FranCloud for a ranked target list of similar-fit franchise brands.

Questions vendors ask

Schlotzsky's Franchisor, answered from the filing

CEO Omer Gajial leads Schlotzsky's within the GoTo Foods portfolio alongside Cinnabon and Auntie Anne's, setting the designated POS System, Approved Supplier network, and Learning Management System every franchisee must use under Items 8 and 11.
Schlotzsky's requires a POS System specified by it from a designated Approved Supplier, designated Approved Suppliers for point-to-point encryption used with it, a dedicated iPad or Windows tablet for the Learning Management System, a dedicated high-speed broadband connection, and acceptance of major credit cards and payment methods such as Apple Pay and Google Pay.
Schlotzsky's operates 294 restaurants — 267 franchised and 27 affiliate-owned — as part of the GoTo Foods portfolio.
Item 8 sets an approved-supplier list. Franchisees must buy Proprietary Goods — ingredients, uniforms, signage, and packaging — from Schlotzsky's, its affiliates, or designated Approved Suppliers, and may propose an alternate supplier for approval elsewhere.
The term runs 20 years, with one 20-year renewal term if the renewal requirements are met. With franchised outlets down 4.6% year over year, Schlotzsky's own POS and Approved Supplier update cycle is the clearer signal for a technology pitch than any single renewal date.
The embedded PDF below is Schlotzsky's 2026 Franchise Disclosure Document. Read Item 8 for the Approved Supplier rules, Item 11 for the POS requirements, and Item 19 for the financial performance representation.
Source

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Schlotzsky's Franchisor2026 FDDView only

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The brands you can actually sell into, from the filings.

Operator footprint

Who runs the locations

144 operators run 228 mapped locations. 26 of them are multi-unit. Aggregate counts from the filing; no names.

Operators by units owned

Single-unit118
2–9 units24
10–24 units1
25+ units1

Top states by locations

TX1

Ownership

The portfolio behind Schlotzsky's Franchisor

strategic_multibrand of GoTo Foods.

Sibling brands

Related Quick service restaurant brands

Primary franchise filings · updated September 2026. Every figure is source-traceable and QA-checked.