From the filings
Software purchasing at Sub Zero is controlled at the headquarters level by founder Jerry Hancock. The franchise currently mandates an approved point-of-sale system and the Profit Keeper platform. With 40 total units (38 franchised) and a 5.6% year-over-year unit growth rate, the addressable market is small but expanding, presenting a narrow window for vendors who align with the mandated tech stack.
For software vendors selling into US franchise brands.
Live signals
Ongoing fee load
The recurring percentage of gross sales named in this filing, before rent, labour or any technology fee.
8%of gross sales (FY2025)
15% reference
Franchisor behaviours
27 requirements the franchisor states in this filing, each in its own words; 2 explicit no's; 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?
YesItem 8
Currently, we require that you use the approved point of sale system, designated accounting bookkeeping systems, and Profit Keeper reporting software and systems from approved suppliers.
Does the franchisor have direct or independent electronic access to the franchisee's financial, sales or customer records?
YesItem 11
We have independent access to information that you generate or store on your point of sale and computer systems, such as sales, pricing, product ordering, and inventory information, which we can use to track sales and for other purposes.
Must the franchisee submit periodic financial statements (monthly, quarterly or annual) to the franchisor?
YesFranchise agreement
In addition, within ninety (90) days after the close of each fiscal year of Franchisee, Franchisee shall furnish to Sub Zero, at Franchisee’s expense, a profit and loss statement prepared on an accrual basis for such fiscal year and a year-end balance sheet.
How the franchisor buys
Is the franchisor or an affiliate itself a supplier of required products, services or systems?
YesItem 8
Due to the proprietary nature of certain uniform and clothing and marketing and promotional materials and related Products, we and our affiliates are the sole and exclusive suppliers of these Products and we will not approve the use of alternative suppliers for these Products.
Does the franchisor reserve the right to change designated suppliers or systems at any time?
YesItem 8
You may only purchase these items from suppliers that we designate or approve, all of which are subject to change by us.
How much revenue did the franchisor and its affiliates earn from franchisee purchases in the last fiscal year?
29267Item 8
In fiscal year ended June 30, 2024, we received revenues in the approximate amount of $29,267 from the sale of products or services to our franchisees and rebates from approved suppliers, which was 3.8% of our total revenues of $755,969.
Does the franchisor or an affiliate receive rebates, commissions or other revenue from designated or approved suppliers?
YesItem 8
We and/or our affiliate may derive revenue from providing products to you and in the form of rebates from approved suppliers.
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?
30Item 8
Required purchases or leases are estimated to make up approximately 50 to 60% of a franchisee’s total initial investment in establishing the business and 30 to 35% of a franchisee’s annual operating expenses to operate the business.
Does the franchisor charge a fee to evaluate a proposed supplier?
YesFranchise agreement
Franchisee shall reimburse Sub Zero for all reasonable expenses incurred in evaluating all suppliers requested by Franchisee.
Can a franchisee propose a new supplier for the franchisor's approval?
YesFranchise agreement
If Franchisee desires to purchase any nonproprietary Products from an unapproved supplier, then Franchisee shall submit a written request to Sub Zero describing the name of the supplier, the reasons for wanting to use that particular supplier and any additional information that Sub Zero requests.
Communications
Does the franchisor own or control the business telephone numbers, or take them over when the agreement ends?
YesItem 4
you assign to us all telephone numbers, telephone and internet listings, website addresses and domain names you use in the operation of the franchise.
Franchise management
Does the franchisor conduct periodic inspections, audits or evaluations of the franchised business?
YesFranchise agreement
Franchisee hereby grants to Sub Zero and its agents the right to enter upon the Franchise Location, without notice, at any reasonable time for the purpose of conducting inspections of the Franchise Location, Franchisee’s books, records and register tapes
Can the franchisor change the operations manual and brand standards unilaterally?
YesItem 16
We can change the standards and the Operations Manuals at any time, which may require you to expend reasonable sums to comply.
Must the franchisor approve the franchisee's site or location before opening?
YesItem 12
Once we have approved a specific location, you will operate your Franchised Store there.
Marketing
Is the franchisee prohibited from operating its own website or social media accounts, or required to use pages the franchisor provides?
YesItem 11
This restriction on advertising on the Internet or a worldwide web page includes a restriction on establishment of any independent website, social media account, domain name, e-mail address or similar presence for use in connection with the Franchised.
Is a minimum grand opening advertising spend required?
YesItem 11
For Storefront Franchises, you must spend the $3,000 minimum amount we specify on grand opening advertising.
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
You must spend at least 2% of Gross Sales (beginning on the first day of the second month after the Franchise opens) for advertising and marketing the Franchise.
Must the franchisee participate in a regional advertising cooperative when one exists?
YesItem 11
If at any meeting of the franchises in an advertising region, 75 percent of the franchises vote to contribute to a regional advertising program, all franchises within that region will be obligated to make a contribution to a regional advertising fund in the amount established by the vote.
Operations
Must the franchisee buy products from a designated distributor?
YesItem 8
You may only serve the Products that we authorize, and you may only purchase these items from suppliers that we designate or approve, all of which are subject to change by us.
Must equipment be purchased from designated or approved suppliers?
YesItem 8
You may only serve the Products that we authorize, and you may only purchase these items from suppliers that we designate or approve, all of which are subject to change 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
Franchisee agrees to participate in Sub Zero’s then-current electronic funds transfer and reporting program(s).
People
Does the franchisor require minimum staffing levels or specific roles?
YesFranchise agreement
Franchisee is required to hire and maintain sufficient staff in order to handle customer volume at all times.
Must employees wear uniforms specified by the franchisor?
YesFranchise agreement
To cause its employees to wear apparel that conforms strictly to the specifications, design, color and style approved by Sub Zero from time to time.
Point of sale
Must the franchisee use a specific point-of-sale system designated or approved by the franchisor?
YesItem 11
Currently, we require that you use the approved point of sale system (“POS”), our standard chart of accounts, and our designated Profit Keeper reporting software and processes.
Does the franchisor have independent access to the data in the franchisee's POS or computer system?
YesItem 11
We have independent access to information that you generate or store on your point of sale and computer systems, such as sales, pricing, product ordering, and inventory information, which we can use to track sales and for other purposes.
Training
Can the franchisor charge the franchisee for additional, refresher or remedial training?
YesFranchise agreement
Franchisee shall also bear the cost of any additional training which may be required by Sub Zero.
Is attendance at an annual convention or conference mandatory for the franchisee?
YesFranchise agreement
You and your manager(s) shall attend the annual or periodic convention or conference.
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.
The franchisor's owner/CEO decides; an ops or franchise-development lead may evaluate.
Sub Zero operates 40 quick-service restaurant locations, 38 of which are franchised. The system generated an average unit volume (AUV) of $228,079, with a 6.0% royalty rate and a 5-year initial franchise term. Year-over-year unit growth sits at 5.6%, signaling modest but steady expansion. For software vendors, the immediate addressable market is the 38 franchised units plus the 2 company-owned stores, concentrated primarily in Florida (5 units), Washington (2), and Massachusetts (2). The operator base is entirely single-unit operators—13 mapped operators with no multi-unit owners—meaning any technology sale must clear a centralized HQ approval process before reaching individual franchisees.
Founder Jerry Hancock is the only executive listed in Item 1 of the 2025 FDD. This lean leadership structure points to a centralized buying center where the founder directly controls or heavily influences all technology decisions. There is no CIO, CTO, or VP of Operations on file. Vendors should prepare to engage directly with the founder's office at the Utah headquarters. The absence of multi-unit operators further reinforces the HQ-centric purchasing model; individual franchisees are unlikely to have autonomous software procurement authority.
Sub Zero mandates two technology systems. First, an approved point of sale system is required, though the specific vendor name is not disclosed in the FDD. Second, Profit Keeper is a mandated financial management platform used across the system. These mandates create both a barrier and an opportunity: any vendor selling complementary or replacement technology must integrate with or displace these existing systems. The mandated POS represents a particularly critical integration point for vendors offering labor scheduling, inventory management, or customer engagement tools.
Item 8 of the FDD contains no procurement extract, leaving the formal purchasing model undisclosed. Vendors will need to clarify during discovery whether Sub Zero uses designated suppliers, an approved supplier list, or an open procurement process. On the renewal side, Item 17 outlines a 5-year term with specific conditions: franchisees must not be in default, must provide 6 months' notice, pay a renewal fee, sign the then-current agreement, release claims against the franchisor, and renovate to current standards. This renewal cycle creates periodic reevaluation points where franchisees may be required to adopt updated technology standards.
The 2025 Franchise Disclosure Document provides the foundational data for any vendor evaluation. Key sections include Item 1 for executive leadership, Item 11 for mandated technology systems, Item 17 for renewal and transfer conditions, and Item 19 for financial performance representations. The embedded PDF viewer below contains the full filing. Focus on the technology mandates in Item 11 and the single-operator structure to understand the sales motion required. For a ranked target list of franchise systems matched to your software category, FranCloud can help.
Questions vendors ask
Every number on this page traces back to this document. Read it in full, page by page. Buy the original PDF to download, search, and annotate it.
View only A one-time purchase: the original filing, yours to keep.
FDD alert
We’ll email you the moment Sub Zero files a new annual FDD, usually the freshest signal of a vendor change.
Operator footprint
13 operators run 13 mapped locations. 0 of them are multi-unit. Aggregate counts from the filing; no names.
Operators by units owned
Top states by locations
| FL | 5 |
|---|---|
| WA | 2 |
| MA | 2 |
| UT | 1 |
| PA | 1 |
Ownership
unknown of sub 0 ice cream.
Related Quick service restaurant brands
Primary franchise filings · updated June 2026. Every figure is source-traceable and QA-checked.