From the filings
Software purchasing at TABU SHABU is controlled by Founder and CEO Jeff Chon at the brand's California headquarters. The most recent Franchise Disclosure Document (2023) does not mandate any specific technology systems, leaving the current tech stack undisclosed. With 8 total units and 33% year-over-year growth, the addressable market is small but expanding for vendors who engage early.
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.
7%of gross sales (FY2023)
15% reference
Franchisor behaviours
29 requirements the franchisor states in this filing, each in its own words; 3 explicit no's; 2 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
You will maintain during the term of this Agreement, and preserve for the time period specified in the Manuals, full, complete and accurate books, records and accounts in accordance with the standard accounting system prescribed by us in the Manuals or otherwise in writing and in accordance with generally accepted…
Does the franchisor have direct or independent electronic access to the franchisee's financial, sales or customer records?
YesFranchise agreement
You agree and acknowledge that we may independently and remotely access Gross Sales and other information recorded by your Computer Systems.
Must the franchisee submit periodic financial statements (monthly, quarterly or annual) to the franchisor?
YesFranchise agreement
You will supply to us monthly profit and loss statements and balance sheets for each calendar month within twenty-five days after the end of each month, in the form we prescribe.
How the franchisor buys
Does the franchisor reserve the right to change designated suppliers or systems at any time?
YesFranchise agreement
We reserve the right to add to and otherwise modify the System, Manuals, the Menu Items, Trade Secret Food Products, and other products and services offered by the Restaurant (such as, but not limited to, the addition, deletion, and modification of menu items, operating procedures, products and services) from time to…
How much revenue did the franchisor and its affiliates earn from franchisee purchases in the last fiscal year?
0Item 8
As of the end of our respective fiscal year ending December 31, 2022, neither we nor our affiliate TSR have derived revenue from franchisee purchases or leases.
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?
75Item 8
During the operation of the franchised business, required purchases or leases from us, or our approved and designated suppliers are estimated to total between 75% to 90% of total ongoing purchases.
Does the franchisor charge a fee to evaluate a proposed supplier?
YesFranchise agreement
A charge not to exceed the reasonable cost of the inspection and evaluation and the actual cost of the test shall be paid by you or the supplier.
Can a franchisee propose a new supplier for the franchisor's approval?
YesItem 8
If you want to use a supplier we have not designated or approved, you must submit a written request for approval, and we must first approve that supplier in writing.
Communications
Does the franchisor own or control the business telephone numbers, or take them over when the agreement ends?
YesFranchise agreement
You agree, within 15 days of expiration or termination, to authorize, and not to interfere with, the transfer of all telephone numbers and directory listings used in connection with the Restaurant to us or at our direction; and/or to instruct the telephone company to forward all calls made to your number to numbers…
Data and IT
Must the franchisee comply with PCI, data-security or cybersecurity standards set by the franchisor?
YesFranchise agreement
Accordingly you agree that you will cause the Restaurant to meet or exceed, at all times, all applicable security standards developed by the Payment Card Industry Standards Council or its successor and other regulations and industry standards applicable to the protection of customer privacy and Tabu Shabu Holdings…
Franchise management
Must the franchisee participate in a customer-satisfaction or net-promoter survey program?
YesFranchise agreement
You agree to present to your customers the evaluation forms we periodically prescribe and to participate and/or request your customers to participate in any surveys performed by or for us.
Does the franchisor conduct periodic inspections, audits or evaluations of the franchised business?
YesFranchise agreement
You further agree to cooperate fully with us and our designees and representatives in connection with such inspections.
Can the franchisor change the operations manual and brand standards unilaterally?
YesFranchise agreement
We reserve the right to add to and otherwise modify the System, Manuals, the Menu Items, Trade Secret Food Products, and other products and services offered by the Restaurant (such as, but not limited to, the addition, deletion, and modification of menu items, operating procedures, products and services) from time to…
Must the franchisor approve the franchisee's site or location before opening?
YesItem 11
We will accept or refuse to accept your proposed site within 30 days of receiving all requested information about the site.
Marketing
Is the franchisee prohibited from operating its own website or social media accounts, or required to use pages the franchisor provides?
YesItem 13
You may not use the Marks, any recognizable portion of the Marks, or any of the Copyrighted Works on the Internet, in any electronic or digital form, or on or through any electronic or digital medium, unless expressly permitted by us in writing.
Is a minimum grand opening advertising spend required?
YesItem 11
You must spend at least $2,500 to promote your Restaurant’s grand opening.
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 $1,500 per quarter on Local Advertising for your Restaurant.
Must the franchisee participate in a customer loyalty or rewards program?
YesFranchise agreement
You will participate in and offer to your customers: (a) all customer loyalty and reward programs; and (b) all contests, sweepstakes, and other prize promotions; which we may develop from time to time.
Must the franchisee participate in a regional advertising cooperative when one exists?
YesItem 11
As of the date of this disclosure document we have not established any advertising cooperative or council, however, when applicable, the terms of the Franchise Agreement require you to participate in any such advertising cooperative or council as directed by us.
Operations
Must the franchisee buy products from a designated distributor?
YesItem 8
You must purchase all food and beverage inventory, ingredients, and supplies from designated or approved suppliers.
Must equipment be purchased from designated or approved suppliers?
YesItem 8
You must purchase all food and beverage inventory, ingredients, and supplies from designated or approved suppliers.
Payments
Are royalties and other fees collected by automatic bank debit (ACH or electronic funds transfer) from the franchisee's account?
YesItem 6
Also, fees payable to us or our affiliates are currently required to be made electronically via direct debit.
Must the franchisee participate in a gift card program?
YesItem 11
You must also participate in and engage our service providers for our loyalty program, gift cards, and remove access.
People
Does the franchisor require minimum staffing levels or specific roles?
YesItem 15
Each TABU SHABU™ Restaurant must employ a full-time general manager who has also successfully completed our initial training program to our satisfaction and who is responsible for the oversight of operations your TABU SHABU™ Restaurant.
Must employees wear uniforms specified by the franchisor?
YesFranchise agreement
You shall cause all employees, while working at the Restaurant, to: (a) wear uniforms of such color, design, and other specifications as we may designate from time to time, and (b)
Point of sale
Must the franchisee use a specific point-of-sale system designated or approved by the franchisor?
YesFranchise agreement
You will acquire and use only the point of sale and computer systems and equipment that we prescribe for use by TABU SHABU™ Restaurants (“Computer System”), and adhere to our requirements for use.
Does the franchisor have independent access to the data in the franchisee's POS or computer system?
YesFranchise agreement
You agree and acknowledge that we may independently and remotely access Gross Sales and other information recorded by your Computer Systems.
Training
Can the franchisor charge the franchisee for additional, refresher or remedial training?
YesItem 11
We have the right to charge for additional training provided, including: (i) initial training provided to persons repeating or replacing a person who did not pass initial training; (ii) initial training for subsequent trainees; and (iii) periodic additional training we may provide or require, including our annual…
Is attendance at an annual convention or conference mandatory for the franchisee?
YesFranchise agreement
Our annual convention will also be deemed mandatory additional training.
TABU SHABU is a full-service restaurant concept headquartered in California with a total of 8 units, split evenly between 4 company-owned and 4 franchised locations. The brand reported an Average Unit Volume (AUV) of $965,685 in its 2023 FDD, with year-over-year unit growth of 33.3%. For software vendors, the immediate addressable market is small—just 8 units across two states—but the growth trajectory signals a brand in expansion mode. The operator footprint consists of 6 mapped operators, all of whom are single-unit operators; no multi-unit franchisees are on file. This structure means any technology adoption will likely be driven from the top down rather than through influential franchisee groups.
Software purchasing authority rests with a single individual: Jeff Chon, the Founder and Chief Executive Officer. The 2023 FDD lists no other executives, no CIO, no VP of Technology, and no procurement committee. In a lean organization of this size, the CEO is the sole buyer for any technology evaluation, from POS to back-office systems. Vendors should prepare for a direct, founder-led sales process. The brand is independently owned with no parent company on file, so there is no larger corporate structure to navigate.
The 2023 FDD does not mandate or recommend any specific technology systems. No POS provider, online ordering platform, payroll vendor, or inventory management system is named in the disclosure. This absence of mandates means the current tech stack is unknown to outside vendors, but it also signals an open environment where franchisees may have autonomy—or where the franchisor has not yet standardized. For a vendor, this represents either a greenfield opportunity or a fragmented installed base that would require selling to individual operators.
Item 8 of the FDD, which typically outlines procurement restrictions and designated suppliers, provides no extract. The procurement model is therefore not publicly disclosed. On renewals, Item 17 provides a clear structure: the initial franchise term is 10 years, with a subsequent renewal term of 5 years. Franchisees must provide notice of their intent to renew between 9 and 12 months before the agreement expires. This creates a defined window when operators are contractually required to engage with the franchisor—and potentially re-evaluate their technology stack to meet current standards. With the brand's recent growth, the first wave of renewals may still be years away, but vendors who establish a relationship now will be positioned when those windows open.
The Franchise Disclosure Document is the single most important resource for understanding a franchise brand's operations, obligations, and technology requirements. For TABU SHABU, the 2023 FDD confirms a small but growing system with no mandated technology, a single decision-maker, and a defined renewal cycle. The full document is embedded below for your review. When analyzing it, pay close attention to Item 11 (franchisor's obligations) for any technology assistance the franchisor provides, even if no systems are mandated, and Item 17 for renewal conditions that may force technology upgrades. For a ranked target list of franchise brands matched to your software category, FranCloud can help.
Questions vendors ask
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FDD alert
We’ll email you the moment TABU SHABU files a new annual FDD, usually the freshest signal of a vendor change.
Operator footprint
6 operators run 6 mapped locations. 0 of them are multi-unit. Aggregate counts from the filing; no names.
Operators by units owned
Top states by locations
| CA | 5 |
|---|---|
| TX | 1 |
Related Full service restaurant brands
Primary franchise filings · updated June 2026. Every figure is source-traceable and QA-checked.