Does the franchisor have direct or independent electronic access to the franchisee's financial, sales or customer records?
YesItem 11
We will have independent access to the information generated and stored in your hand-held system.
From the filings
Schmidt, a baked-goods route-distribution franchise under parent Schmidt Baking, requires franchisees to obtain a hand-held computer system and printer compatible with the system Schmidt itself uses — the one technology category the FDD calls out by name. With 460 total units, the addressable market is concentrated in the mid-Atlantic.
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Live signals
Franchisor behaviours
8 requirements the franchisor states in this filing, each in its own words; 13 explicit no's; 13 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?
YesItem 11
We will have independent access to the information generated and stored in your hand-held system.
How the franchisor buys
Is the franchisor or an affiliate itself a supplier of required products, services or systems?
YesItem 8
Other than the hand-held computer system and printer and our Products, there are no categories of goods and services for which we or our Affiliates are approved suppliers or the only approved suppliers.
How much revenue did the franchisor and its affiliates earn from franchisee purchases in the last fiscal year?
246267780Item 8
In its fiscal year ended December 31, 2024, we derived $246,267,780 representing 99.8% of our total revenue of $249,205,500 in revenue from the sale of products or services to our Distributors.
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?
90Item 8
approximately 90% to 97% of your total expenses in operating your business
Franchise management
Does the franchisor conduct periodic inspections, audits or evaluations of the franchised business?
YesItem 9
Inspections and audits Distribution Agreement §10.2 Item 13 t.
Operations
Must equipment be purchased from designated or approved suppliers?
YesItem 8
You must obtain a hand-held computer system and printer compatible with that system utilized by us.
Point of sale
Must the franchisee use a specific point-of-sale system designated or approved by the franchisor?
YesItem 8
You must obtain a hand-held computer system and printer compatible with that system utilized by us.
Does the franchisor have independent access to the data in the franchisee's POS or computer system?
YesItem 11
We will have independent access to the information generated and stored in your hand-held system.
Who buys here
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.
HQ leadership: CEO/President + VP Ops/Franchise + a first dedicated IT/systems owner.
Schmidt's 2025 FDD reports 460 total units — 436 franchised and 24 company-owned — running under parent Schmidt Baking. Franchised outlets fell 0.457% year over year, and the FDD makes no Item 19 financial performance representation.
Purchasing authority for the one mandated technology item sits with HQ: franchisees must obtain a hand-held computer system and printer compatible with the system Schmidt itself uses. Item 2 lists President Stephen J. Paterakis, Vice President John Paterakis, Jr., and Director of Sales Jeffrey Sobotta. Across the operator footprint, 27 operators run about 27 located units, none of them multi-unit, concentrated in Maryland, New Jersey, Virginia, Pennsylvania, and Connecticut.
The hand-held computer system and compatible printer is the sole technology requirement the filing calls out by category — franchisees must lease it from Schmidt, which does not sell it. Beyond that device and Schmidt's own baked-goods Products, Schmidt's designated-supplier requirement stops there: logoed clothing bearing Schmidt's logo must also come from Schmidt if a franchisee elects to wear it.
Schmidt estimates that required purchases from Schmidt, its parent, or other designated sources make up roughly 70% to 96% of a franchisee's expenses in starting the business, and 90% to 97% of ongoing operating expenses. Item 17 of the FDD sets Schmidt's renewal, transfer, and termination terms; with franchised outlets down 0.457% year over year, the hand-held computer system remains the clearest recurring technology touchpoint for a vendor pitch.
The embedded PDF viewer below carries Schmidt's 2025 Franchise Disclosure Document in full; Items 8 and 11 hold the detail summarized here.
Talk to FranCloud for a ranked target list of route-distribution franchisors with narrow, HQ-controlled tech mandates like Schmidt's.
Questions vendors ask
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FDD alert
We’ll email you the moment Schmidt files a new annual FDD, usually the freshest signal of a vendor change.
Operator footprint
27 operators run 27 mapped locations. 0 of them are multi-unit. Aggregate counts from the filing; no names.
Operators by units owned
Top states by locations
| MD | 11 |
|---|---|
| NJ | 6 |
| VA | 4 |
| PA | 3 |
| CT | 2 |
Ownership
unknown of schmidt baking.
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Primary franchise filings · updated September 2026. Every figure is source-traceable and QA-checked.