FacebookMeta
or other presence on the Internet, or otherwise advertise on the Internet or any other public computer network in connection with the Franchised Business, including any profile on Facebook, LinkedIn,
From the filings
+2.941% units YoYHQ-led decisions
SWEETWATERS
Quick service restaurantSoftware purchasing at Sweetwaters is controlled at the headquarters level, with Chief Operating Officer Woei Bee and SVP of Marketing & Franchise Development Anna Schmitt-Reichert as key executive contacts. The franchisor mandates use of the Sweetwaters Team Site for operations. With 39 total units and a 2.9% year-over-year growth rate, the addressable market is small but concentrated, primarily across Michigan and Texas.
For software vendors selling into US franchise brands.
Live signals
Total units
39
35 franchised
Unit growth YoY
+2.941%
vs prior filing
AUV
$595K
Item 19, 2024
Royalty
6%
of gross sales
Ad fund
3%
national + local
Initial fee
—
per unit
Investment range
$441K–$730K
all-in, Item 7
Procurement
Approved supplier
from the filing
Non-compete
2 years
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.
9%of gross sales (FY2025)
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.
InstagramMeta
the Internet, or otherwise advertise on the Internet or any other public computer network in connection with the Franchised Business, including any profile on Facebook, LinkedIn, Instagram, Pinterest,
LinkedInLinkedIn
resence on the Internet, or otherwise advertise on the Internet or any other public computer network in connection with the Franchised Business, including any profile on Facebook, LinkedIn, Instagram,
PinterestPinterest
et, or otherwise advertise on the Internet or any other public computer network in connection with the Franchised Business, including any profile on Facebook, LinkedIn, Instagram, Pinterest, X (Former
TikTokTikTok
ther public computer network in connection with the Franchised Business, including any profile on Facebook, LinkedIn, Instagram, Pinterest, X (Formerly known as Twitter), YouTube, TikTok or any other
TwitterX
e Internet or any other public computer network in connection with the Franchised Business, including any profile on Facebook, LinkedIn, Instagram, Pinterest, X (Formerly known as Twitter), YouTube, T
YouTubeGoogle
or any other public computer network in connection with the Franchised Business, including any profile on Facebook, LinkedIn, Instagram, Pinterest, X (Formerly known as Twitter), YouTube, TikTok or an
Franchisor behaviours
What the franchisor requires
27 requirements the franchisor states in this filing, each in its own words; 4 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
Franchisee shall record all transactions and Gross Sales of the Franchised Business on a Computer System that is designated or approved by Franchisor, which must contain software that allows Franchisee to
Does the franchisor have direct or independent electronic access to the franchisee's financial, sales or customer records?
YesFranchise agreement
Franchisor may, without notice to Franchisee, have the right to independently and remotely access and view Franchisee’s computer system used in connection with the Franchised Business (the “Computer System”) via the Internet, other electronic means or by visiting the Franchised Business, in order to obtain Gross…
Must the franchisee submit periodic financial statements (monthly, quarterly or annual) to the franchisor?
YesFranchise agreement
(ii) on or before the twentieth (20th) of each month, an unaudited profit and loss statement, cash flow statement, and balance sheet for the Franchised Business for the preceding calendar month;
How the franchisor buys
Is the franchisor or an affiliate itself a supplier of required products, services or systems?
YesItem 8
We have the right to require you to purchase any items or services necessary to establish or operate your Franchised Business from a supplier that we approve or designate (each, an “Approved Supplier”), which may include us or our affiliate(s).
Does the franchisor reserve the right to change designated suppliers or systems at any time?
YesItem 8
We have the right to require you to purchase any items or services necessary to establish or operate your Franchised Business from a supplier that we approve or designate (each, an “Approved Supplier”), which may include us or our affiliate(s).
How much revenue did the franchisor and its affiliates earn from franchisee purchases in the last fiscal year?
116692Item 8
In its past fiscal year ending December 31, 2024, our affiliate, Sweetwaters Brands LLC, generated $116,692 in revenue in connection with franchisees’ required purchases.
Does the franchisor or an affiliate receive rebates, commissions or other revenue from designated or approved suppliers?
YesItem 8
We and/or our affiliate(s) may receive payments or other compensation from Approved Suppliers or any other suppliers on account of these suppliers’ dealings with us, you, or other Franchised Businesses in the System, such as rebates, commissions or other forms of compensation.
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?
80Item 8
approximately 80% to 90% of your ongoing costs (but 100% of your coffee and tea purchases) to operate the Franchised Business after the initial start-up phase.
Can a franchisee propose a new supplier for the franchisor's approval?
YesItem 8
If you wish to undertake either of these actions, you must request and obtain our approval in writing before: (i) using or offering the non-approved product or service in connection with your Franchised Business; or (ii) purchasing from a non-approved supplier.
Communications
Does the franchisor own or control the business telephone numbers, or take them over when the agreement ends?
YesItem 17
cancel or, at our option, assign us all telephone numbers, domain names and social media profiles used in connection with the Franchised Business (as well as all related listings) to us or our designee
Franchise management
Does the franchisor conduct periodic inspections, audits or evaluations of the franchised business?
YesFranchise agreement
Franchisor will, as it deems appropriate in its sole discretion, conduct inspections and/or audits of the Franchised Business and Premises to ensure that Franchisee is operating its Franchised Business in compliance with the terms of this Agreement, the Manuals and the System standards and specifications.
Can the franchisor change the operations manual and brand standards unilaterally?
YesFranchise agreement
Franchisor reserves the right to supplement, revise or otherwise modify the System or any aspect/component thereof, and Franchisee agrees to promptly accept and comply with any such addition, subtraction, revision, modification or change and make such reasonable expenditures as may be necessary to comply with any…
Must the franchisor approve the franchisee's site or location before opening?
YesFranchise agreement
Franchisor must approve of Franchisee’s proposed location, as well as the lease for the Premises (the “Lease”) or purchase agreement for the location, prior to Franchisee entering into any such agreement for that location to serve as the Premises of the Franchised Business.
Marketing
Is the franchisee prohibited from operating its own website or social media accounts, or required to use pages the franchisor provides?
YesItem 5
Except as approved in advance in writing by us, you must not establish or maintain a separate website, splash page, profile or other presence on the Internet, or otherwise advertise on the Internet or any other public computer network in connection with the Franchised Business, including any profile on Facebook…
Is a minimum grand opening advertising spend required?
YesFranchise agreement
Franchisee must pay Franchisor a grand opening advertising fee of $10,000 (the “Grand Opening Advertising Fee”) upon the execution of this Agreement.
Is the franchisee required to spend a minimum amount on local advertising or marketing, as a percentage of sales or a fixed amount?
YesFranchise agreement
Franchisee must expend, each month, a minimum of two percent (2%) of Gross Sales on local advertising and marketing within the Designated Territory (the “Local Advertising Requirement”).
Must the franchisee participate in a customer loyalty or rewards program?
YesItem 5
You must participate in, and comply with the requirements of, our gift card and loyalty programs, including issuing and honoring gift and loyalty cards, and our marketing programs, including honoring coupons and buy-one-get-one-free cards.
Operations
Must the franchisee buy products from a designated distributor?
YesFranchise agreement
Franchisee must: (i) purchase any and all Required Items that Franchisor designates for use in connection with the Franchised Business, including without limitation, all products, supplies, inventory, fixtures, Computer System, parts, and materials required for the operation of the Franchised Business; (ii) ensure…
Must equipment be purchased from designated or approved suppliers?
YesFranchise agreement
Franchisee must: (i) purchase any and all Required Items that Franchisor designates for use in connection with the Franchised Business, including without limitation, all products, supplies, inventory, fixtures, Computer System, parts, and materials required for the operation of the Franchised Business; (ii) ensure…
Payments
Are royalties and other fees collected by automatic bank debit (ACH or electronic funds transfer) from the franchisee's account?
YesFranchise agreement
Franchisee shall pay all fees and other amounts due to Franchisor and/or its affiliates under this Agreement through an electronic funds transfer program (the “EFT Program”), under which Franchisor automatically deducts all payments owed to Franchisor under this Agreement, or any other agreement between Franchisee…
Must the franchisee participate in a gift card program?
YesItem 5
You must participate in, and comply with the requirements of, our gift card and loyalty programs, including issuing and honoring gift and loyalty cards, and our marketing programs, including honoring coupons and buy-one-get-one-free cards.
People
Does the franchisor require minimum staffing levels or specific roles?
YesItem 15
We require that the Café be under the direct on-premises supervision of a trained manager at all times (the “Designated Manager”).
Point of sale
Must the franchisee use a specific point-of-sale system designated or approved by the franchisor?
YesItem 5
We currently have an Approved Supplier for the POS System, as well as a gift card and loyalty program, that you must use in connection with your Franchised Business.
Does the franchisor have independent access to the data in the franchisee's POS or computer system?
YesItem 5
We will have, through polling, unlimited independent access to the sales information and data produced by your computer system regarding the Café, but no independent access to any other information and data.
Sales and CRM
Must the franchisee use a CRM system designated or approved by the franchisor?
YesFranchise agreement
Franchisee shall record all transactions and Gross Sales of the Franchised Business on a Computer System that is designated or approved by Franchisor, which must contain software that allows Franchisee to record accumulated sales without turning back, resetting or erasing such sales.
Training
Can the franchisor charge the franchisee for additional, refresher or remedial training?
YesFranchise agreement
Franchisor may require Franchisee and its designated attendees to pay its then-current training tuition fee in connection with attending additional/refresher training
Is attendance at an annual convention or conference mandatory for the franchisee?
YesFranchise agreement
Franchisee and each of its management personnel must attend and successfully complete all training and annual conferences that are prescribed by Franchisor under this Agreement.
The filing answers no to 4 questions
- Is there a franchisee advisory council, association or committee?Franchise agreement
- Does the franchisor charge a fee to evaluate a proposed supplier?Item 8
- Must the franchisee participate in a customer-satisfaction or net-promoter survey program?Franchise agreement
- Must the franchisee participate in a regional advertising cooperative when one exists?Item 5
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.
VP SalesHead of SalesCROSales Director
- 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 Sweetwaters
Sweetwaters is a quick-service restaurant concept headquartered in Michigan with 39 total units, 35 of which are franchised. The system generated an average unit volume of $595,091.23, with a 6.0% royalty rate and a standard 10-year initial franchise term. Year-over-year unit growth sits at 2.9%, indicating slow but steady expansion. For a software vendor, the immediate addressable market is 39 locations. The operator footprint consists of 38 mapped operators, four of whom are multi-unit owners. The unit-band split shows 34 single-unit operators and four operators with 2–9 units. No operators control 10 or more units. The top states by unit count are Michigan (11), Texas (11), Ohio (4), New Jersey (3), and North Dakota (2).
Who controls software purchasing
Purchasing authority rests at the franchisor headquarters. The 2025 FDD lists Lisa Chin-Bee as Chief Executive Officer, Woei Bee as Chief Operating Officer, Anna Schmitt-Reichert as Executive Vice President of Marketing & Franchise Development, and Amit Klass as Senior Operations Manager. The COO and the EVP of Marketing & Franchise Development are the most likely stakeholders for technology decisions affecting operations, brand standards, and franchisee-facing systems. The chain is independently owned with no parent company on file, meaning decisions are made within this lean executive team rather than at a corporate parent level.
Mandated and current tech stack
The only mandated technology disclosed in the 2025 FDD is the Sweetwaters Team Site. No specific point-of-sale vendor, online ordering platform, or back-of-house system is named. This represents a potential whitespace for vendors offering POS, inventory management, labor scheduling, or loyalty platforms that can integrate with or replace the existing mandated site. The absence of named legacy systems may lower switching barriers if you can demonstrate clear operational or financial ROI to the HQ team.
Procurement, renewals, and timing
Procurement rules under Item 8 were not extracted in the available data, so the designated-supplier versus approved-supplier model is unknown. Renewal conditions under Item 17 are detailed: franchisees must have no uncured material defaults, no more than three written default notices in the preceding 12 months, execute the then-current franchise agreement, pay a renewal fee, attend refresher training, execute a general release, and re-image the premises to current standards. The renewal term is 10 years. These strict renewal requirements create natural inflection points where franchisees must upgrade technology to meet evolving system standards, opening windows for software vendors to engage HQ about new mandates or approved vendor lists.
How to read the Sweetwaters FDD
The 2025 Franchise Disclosure Document provides the legal and operational blueprint for the Sweetwaters system. Key sections for software vendors include Item 11 (franchisor assistance and mandated systems), Item 8 (restrictions on sources of products and services), and Item 17 (renewal and termination conditions). The executive team listed in Item 1 identifies your buyer personas. The unit count and operator footprint in Item 20 quantify your total addressable market. Review the embedded FDD below to extract procurement signals and identify gaps in the current tech stack that your software can fill.
For a ranked target list of franchise systems matched to your software category, FranCloud can help.
Questions vendors ask
SWEETWATERS, answered from the filing
The buying center includes Woei Bee, Chief Operating Officer, and Anna Schmitt-Reichert, EVP Marketing & Franchise Development. They oversee operations and system standards for all 39 units.
The 2025 FDD mandates the Sweetwaters Team Site. No specific point-of-sale or other operational software vendors are named in the disclosure.
There are 39 total units: 35 franchised and 4 company-owned. The footprint is concentrated in Michigan (11) and Texas (11), with smaller clusters in Ohio, New Jersey, and North Dakota.
The procurement model is not detailed in the available FDD extract. Item 8 signals regarding designated or approved suppliers were not disclosed.
With a 10-year initial term and renewal requiring re-imaging and execution of the then-current agreement, windows may align with renewal cycles or new unit openings. The recent unit growth rate is 2.9%.
The 2025 FDD is filed with state franchise regulators. You can review the full document using the embedded PDF viewer below.
Source
Read the filing itself
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FDD alert
Tell me when this brand refiles.
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Operator footprint
Who runs the locations
36 operators run 38 mapped locations. 2 of them are multi-unit. Aggregate counts from the filing; no names.
Operators by units owned
Single-unit34
2–9 units2
Top states by locations
| MI | 9 |
|---|---|
| TX | 9 |
| OH | 4 |
| NJ | 3 |
| ND | 2 |
Related Quick service restaurant brands
Primary franchise filings · updated June 2026. Every figure is source-traceable and QA-checked.