y us, our affiliates, or our approved vendors. In addition, you are required to purchase and use the App and Loyalty Program from our approved vendor, Heartland Loyalty Powered by Como. The fee is $10
From the filings
Sourdough and Co.
Quick service restaurantSoftware purchasing at Sourdough and Co. is controlled by its principals—Jatinder (Nick) Singh, Songye Qin, and Lowell Steven Presson—per the 2026 FDD. The chain already mandates a full Heartland suite (POS, credit card, gift) plus Como, QR code pay, and text-to-pay. With 99 total units and 24.4% year-over-year unit growth, vendors face a small but fast-expanding addressable market.
For software vendors selling into US franchise brands.
Live signals
Ongoing fee load
What the operator pays every month
The recurring percentage of gross sales named in this filing. It is a floor, not a total — the filing discloses one of the two headline fees.
5%+of gross sales (FY2026)
15% reference
Mandated & recommended tech
The systems vendors compete with
3 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.
imposed and collected only by us, our affiliates, or our approved vendors. In addition, you are required to purchase and use the App and Loyalty Program from our approved vendor, Heartland Loyalty Pow
tware that we currently use is not proprietary to us but is proprietary property to the vendor. Currently, you must purchase a computer/POS system from POS Specialists, which uses Heartland Restaurant
ing ordering, timekeeping, Heartland credit card processing, offline credit card processing, Cloud admin portal and reporting, Text to pay, QR code pay, Heartland Gift integrated, Doordash integrated,
any services on the Internet or in any other media, whether now known or hereinafter invented, unless we otherwise approve it (Currently, franchisees are allowed to participate in Facebook and Instagr
on the Internet or in any other media, whether now known or hereinafter invented, unless we otherwise approve it (Currently, franchisees are allowed to participate in Facebook and Instagram). You must
Franchisor behaviours
What the franchisor requires
28 requirements the franchisor states in this filing, each in its own words; 1 explicit no; 5 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
Use only the chart of bookkeeping accounts prescribed by Franchisor in the then- existing Manual and/or Written Standards or otherwise communicated to Franchisee;
Does the franchisor have direct or independent electronic access to the franchisee's financial, sales or customer records?
YesItem 11
We reserve the right to download sales, other data, and communications from your Computer System.
Must the franchisee submit periodic financial statements (monthly, quarterly or annual) to the franchisor?
YesFranchise agreement
require; (b) Submit to Franchisor, within ninety days after the end of each calendar year, an income 13 - P a g e statement certified by Franchisee or by the Designated Individual as accurately reflecting the results of operations of the Franchised Restaurant for the preceding calendar year, together with such other…
How the franchisor buys
Is the franchisor or an affiliate itself a supplier of required products, services or systems?
YesItem 8
We and/or our affiliate(s) are or may become a supplier of certain Products and Restaurant Items.
Does the franchisor reserve the right to change designated suppliers or systems at any time?
YesFranchise agreement
Franchisee agrees that Franchisor shall have the right to establish, in writing, reasonable new standards for the implementation of technology in the System;
Does the franchisor or an affiliate receive rebates, commissions or other revenue from designated or approved suppliers?
YesFranchise agreement
Franchisee acknowledges and agrees that Franchisor and/or its Affiliate(s) may receive fees, commissions, rebates, or other consideration from approved suppliers based upon sales to Franchisee.
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
We estimate that your purchases from approved suppliers will represent approximately 90% to 100% of your total purchases in establishing the Franchised Restaurant, and approximately 90% - 100% in the continuing operation of the Franchised Restaurant.
Does the franchisor charge a fee to evaluate a proposed supplier?
YesItem 8
You will reimburse us for the reasonable cost of all evaluation and testing of such suppliers and/or their products.
Can a franchisee propose a new supplier for the franchisor's approval?
YesFranchise agreement
If Franchisee desires to purchase any item from an unapproved supplier, Franchisee shall submit to Franchisor a written request for such approval or shall request the supplier itself to do so.
Communications
Does the franchisor own or control the business telephone numbers, or take them over when the agreement ends?
YesFranchise agreement
At Franchisor’s option, assign to Franchisor or Franchisor’s designee all of Franchisee’s right, title and interest in and to, or cancel any and all (i) telephone numbers used for the Franchised Restaurant or otherwise listed under the Trade Name or any of Franchisor’s other trademarks, trade names, service marks or…
Franchise management
Does the franchisor conduct periodic inspections, audits or evaluations of the franchised business?
YesFranchise agreement
Franchisor may also, at all times during the term of this Agreement and for a period of three years after the termination or expiration of this Agreement, retain an independent party to audit Franchisee’s 14 - P a g e Business Records.
Can the franchisor change the operations manual and brand standards unilaterally?
YesFranchise agreement
Franchisor shall have the right, but not the obligation, to develop, add to or otherwise modify the Manual and/or any Written Standards from time to time to reflect changes in any of the System Standards provided that no such addition or modification shall alter Franchisee’s fundamental status and rights under this…
Must the franchisor approve the franchisee's site or location before opening?
YesItem 11
You may not develop a Restaurant at any site unless we have communicated our acceptance of the site in writing.
Marketing
Is the franchisee prohibited from operating its own website or social media accounts, or required to use pages the franchisor provides?
YesFranchise agreement
Franchisee shall not establish a separate website, without Franchisor’s prior written approval (which Franchisor shall not be obligated to provide).
Is a minimum grand opening advertising spend required?
YesItem 7
Under the Franchise Agreement, you are required to expend at least $7,500 on grand opening marketing expenses.
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
Currently, you must spend 1% of your Gross Revenues per month on your own local advertising.
Must the franchisee participate in a customer loyalty or rewards program?
YesItem 16
You must participate in any gift certificate or gift card program or rewards program we establish.
Must the franchisee participate in a regional advertising cooperative when one exists?
YesItem 11
If we have established a Cooperative applicable to your Franchised Location at the time you begin operation under the Franchise Agreement, you must immediately become a member of such Cooperative.
Operations
Must the franchisee buy products from a designated distributor?
YesItem 8
you must purchase Proprietary Products only from the suppliers and distributors that we designate in our sole discretion
Must equipment be purchased from designated or approved suppliers?
YesItem 8
You must purchase and maintain an inventory of product, supplies and kitchen equipment from us, our affiliates, or our approved vendors and/or suppliers.
Payments
Are royalties and other fees collected by automatic bank debit (ACH or electronic funds transfer) from the franchisee's account?
YesItem 6
Royalty fees shall be payable only to us and collected by us through electronic transfer with direct deposit to us from your account.
Must the franchisee participate in a gift card program?
YesItem 16
You must participate in any gift certificate or gift card program or rewards program we establish.
People
Does the franchisor require minimum staffing levels or specific roles?
YesItem 15
The Franchised Restaurant must at all times be under the on-site supervision of a manager.
Must employees wear uniforms specified by the franchisor?
YesItem 16
You must comply with all our standards and specifications relating to the purchase and/or lease, use and sale of all products, kitchen equipment, supplies, furnishings and fixtures, technology items, uniforms, software, signage, and décor items, printed advertising materials and other items to be used, sold, or…
Point of sale
Must the franchisee use a specific point-of-sale system designated or approved by the franchisor?
YesItem 11
Currently, you must purchase a computer/POS system from POS Specialists, which uses Heartland Restaurant POS System 2x Heartland Restaurant software licenses including ordering, timekeeping, Heartland credit card processing, offline credit card processing, Cloud admin portal and reporting, Text to pay, QR code pay…
Does the franchisor have independent access to the data in the franchisee's POS or computer system?
YesItem 11
We reserve the right to download sales, other data, and communications from your Computer System.
Training
Can the franchisor charge the franchisee for additional, refresher or remedial training?
YesItem 11
We may charge you a fee to attend these conferences or any additional training.
Is attendance at an annual convention or conference mandatory for the franchisee?
YesFranchise agreement
Franchisee (or if Franchisee is other than an individual, the Designated Individual), at least biennially, must attend a national meeting of WOSDSDCO Franchisees at a location designated by Franchisor.
The filing answers no to 1 question
- Must the franchisee participate in a customer-satisfaction or net-promoter survey program?Item 15
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.
- 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 Sourdough and Co.
Sourdough and Co. is a quick-service restaurant chain headquartered in California with 99 total units—97 franchised and just 2 company-owned—according to its 2026 Franchise Disclosure Document. The system is growing fast: year-over-year unit growth clocked in at 24.359%. For software vendors, that trajectory signals a small but expanding addressable market. Every new franchise unit that opens is likely to adopt the mandated tech stack, creating a recurring installation opportunity.
The operator footprint is entirely single-unit: 92 mapped operators run exactly one location each, with zero multi-unit franchisees in the 2–9, 10–24, or 25+ bands. That means no large franchisee groups control blocks of units. Sales outreach will be to individual owner-operators, but technology decisions appear to flow from the top. The royalty rate is 5.0% of gross sales. Average unit volume is not disclosed in the most recent FDD.
Who controls software purchasing
The 2026 FDD lists three principals in Item 1: Jatinder (Nick) Singh, Songye Qin, and Lowell Steven Presson. No separate chief information officer, chief technology officer, or VP of IT is named. For a vendor, this means the buying center is compact and likely sits with these principals. When pitching Sourdough and Co., your conversation should assume that Singh, Qin, or Presson will evaluate any system that touches franchise operations, payments, or guest experience.
Because the chain mandates specific technology across all locations, the franchisor holds significant sway over software selection. Franchisees are not free to choose their own POS or payment processor; the mandate runs through HQ. That centralization makes the principals the single point of entry for any vendor seeking to displace an incumbent or add a complementary tool.
Mandated and current tech stack
Sourdough and Co. discloses a tightly prescribed technology environment in its 2026 FDD. The mandated systems are:
- Como (customer engagement or loyalty platform)
- Heartland Restaurant software (point-of-sale)
- Heartland credit card processing
- Heartland Gift (gift card program)
- QR code pay
- Text-to-pay
This stack is Heartland-heavy, covering the core payment and POS workflow, with Como layered on for digital engagement. Any vendor selling adjacent software—inventory, labor scheduling, catering, delivery integration, or advanced analytics—must integrate with or sit alongside this mandated baseline. The absence of a named online ordering or third-party delivery mandate in the FDD may represent a gap, but vendors should verify directly with HQ.
Procurement, renewals, and timing
The 2026 FDD does not include an Item 8 extract, so the procurement model—whether Sourdough and Co. uses designated suppliers, approved suppliers, or an open purchasing environment—is not publicly known. Similarly, Item 17, which would disclose renewal terms and franchise agreement duration, is absent from the extract. The initial term length is not disclosed. Without these data points, vendors cannot estimate contract-cycle windows or renewal-driven RFP timing from the FDD alone.
What is clear is that the franchisor exercises control over technology selection through its mandates. Vendors should approach HQ directly to understand whether there is a formal vendor-review process, an approved-supplier list, or an annual technology review cycle.
How to read the Sourdough and Co. FDD
The full Sourdough and Co. 2026 Franchise Disclosure Document is embedded below. For software vendors, the most actionable sections are Item 1 (the principals who control purchasing), Item 11 (the mandated tech stack), and Item 20 (the unit-count table and operator footprint). Item 8 and Item 17 are not populated in the current extract, so procurement and renewal intelligence must come from direct engagement with HQ.
With 99 units, a 24.4% growth rate, and a fully mandated Heartland-Como stack, Sourdough and Co. represents a compact but centralized sales target. If you need a ranked list of franchise systems that match your software category, FranCloud can build one from the latest FDD data.
Questions vendors ask
Sourdough and Co., answered from the filing
Read the filing itself
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FDD alert
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Operator footprint
Who runs the locations
92 operators run 92 mapped locations. 0 of them are multi-unit. Aggregate counts from the filing; no names.
Operators by units owned
Top states by locations
| CA | 49 |
|---|---|
| NV | 5 |
| FL | 5 |
| TX | 4 |
| GA | 4 |
Related Quick service restaurant brands
Primary franchise filings · updated June 2026. Every figure is source-traceable and QA-checked.