duct and service sold to you by us and/or our affiliates and there is no limitation on the amount of any such markups. We have a purchasing agreement with our designated supplier, Sysco, under which w
From the filings
The Red Chickz
Quick service restaurantThe Red Chickz's most recent FDD, from 2026, discloses 5 US locations — 3 franchised and 2 company-owned — at an average unit volume of $1,457,743, which puts software purchasing with a founder-led HQ in Nevada. Item 1 names Shahram (Shawn) Lalehzarian as Founder & CEO, alongside Vice President of Development Spencer Sabatasso and two directors; no CIO or CTO is disclosed. The only name in the filing carrying a mandate is Sysco, a supplier obligation rather than a software system — Facebook, Instagram, LinkedIn, Pinterest, TikTok, Twitter and Yahoo are named in the document, and none of them is required.
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, before rent, labour or any technology fee.
9%of gross sales (FY2026)
15% reference
Mandated & recommended tech
The systems vendors compete with
1 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.
n or through the Internet, any social media site, mobile application, networking website, electronic media, or any emerging or future developed media outlet or platform, including Facebook®, TikTok, S
n, networking website, electronic media, or any emerging or future developed media outlet or platform, including Facebook®, TikTok, Snap Chat, Twitter®, LinkedIn®, Living Social®, Instagram®, Groupon®
dia site, mobile application, networking website, electronic media, or any emerging or future developed media outlet or platform, including Facebook®, TikTok, Snap Chat, Twitter®, LinkedIn®, Living So
ic media, or any emerging or future developed media outlet or platform, including Facebook®, TikTok, Snap Chat, Twitter®, LinkedIn®, Living Social®, Instagram®, Groupon®, YouTube, Pinterest, Foursquar
h the Internet, any social media site, mobile application, networking website, electronic media, or any emerging or future developed media outlet or platform, including Facebook®, TikTok, Snap Chat, T
social media site, mobile application, networking website, electronic media, or any emerging or future developed media outlet or platform, including Facebook®, TikTok, Snap Chat, Twitter®, LinkedIn®,
eveloped media outlet or platform, including Facebook®, TikTok, Snap Chat, Twitter®, LinkedIn®, Living Social®, Instagram®, Groupon®, YouTube, Pinterest, Foursquare, Yelp, Google, Yahoo, or any simila
ng or future developed media outlet or platform, including Facebook®, TikTok, Snap Chat, Twitter®, LinkedIn®, Living Social®, Instagram®, Groupon®, YouTube, Pinterest, Foursquare, Yelp, Google, Yahoo,
electronic media, or any emerging or future developed media outlet or platform, including Facebook®, TikTok, Snap Chat, Twitter®, LinkedIn®, Living Social®, Instagram®, Groupon®, YouTube, Pinterest, F
Franchisor behaviours
What the franchisor requires
30 requirements the franchisor states in this filing, each in its own words; 2 explicit no's; 2 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?
YesFranchise agreement
Red Dot has the right to independently access any and all information on your Computer & Tech Systems at any time, without first notifying you.
Must the franchisee submit periodic financial statements (monthly, quarterly or annual) to the franchisor?
YesFranchise agreement
12.3.1 an annual balance sheet and profit and loss statement reviewed by a certified public accountant and, if requested by Red Dot, a semi-annual internal balance sheet and profit and loss statement;
How the franchisor buys
Is the franchisor or an affiliate itself a supplier of required products, services or systems?
YesItem 8
As of the issuance date of this Disclosure Document, you must purchase the following items from our affiliate, GSN: Branded paper products, merchandise, and dry goods.
Does the franchisor reserve the right to change designated suppliers or systems at any time?
YesItem 8
We may designate additional suppliers, or remove any supplier from our approved list at any time.
How much revenue did the franchisor and its affiliates earn from franchisee purchases in the last fiscal year?
0Item 8
We did not derive revenue on account of required franchisee purchases during our fiscal year ended December 31, 2024.
Does the franchisor or an affiliate receive rebates, commissions or other revenue from designated or approved suppliers?
YesItem 8
We have a purchasing agreement with our designated supplier, Sysco, under which we will receive a rebate of 1.5% of all purchases.
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?
85Item 8
We estimate that approximately 85% to 90% of your expenditures for leases and purchases in operating your franchised Restaurant will be for goods and services that must be purchased from us, our affiliates, or an approved or designated supplier.
Does the franchisor charge a fee to evaluate a proposed supplier?
YesItem 8
You must pay our expenses to evaluate goods, services or suppliers.
Can a franchisee propose a new supplier for the franchisor's approval?
YesItem 8
If you would like to purchase any goods or services in establishing and operating the Franchised Restaurant that we have not approved, (for goods and services that must meet our standards, specifications or that require supplier approval), you must first send us sufficient information, specifications and samples for…
Communications
Does the franchisor own or control the business telephone numbers, or take them over when the agreement ends?
YesFranchise agreement
This Conditional Assignment of Telephone Numbers and Listings (the “Assignment”) is entered into this day of , 20 (“Effective Date”) in accordance with the terms of the Franchise Agreement (“Franchise Agreement”) between RED DOT RESTAURANT GROUP, INC. (“Franchisor”) and [INSERT FRANCHISEE] (“Franchisee”), executed…
Data and IT
Must the franchisee comply with PCI, data-security or cybersecurity standards set by the franchisor?
YesFranchise agreement
You shall at all times be compliant with Payment Card Industry Data Security Standards (and its successors), any and all requirements imposed by all applicable payment processors and networks, including credit card and debit card processors, and any and all state and federal laws, rules and regulations relating to…
Franchise management
Does the franchisor conduct periodic inspections, audits or evaluations of the franchised business?
YesFranchise agreement
In an effort to advance the protection and enhancement of the brand and the Marks, you shall permit Red Dot and its agents to enter upon the Franchised Restaurant premises at any time for the purpose of conducting inspections of your operations;
Can the franchisor change the operations manual and brand standards unilaterally?
YesFranchise agreement
Any additions and modifications thereto as Red Dot may issue from time to time, in its discretion, to incorporate new developments or other changes in System standards, specifications, procedures, and techniques (including, to the full extent the law allows, the maximum, minimum, or other prices for products and…
Must the franchisor approve the franchisee's site or location before opening?
YesItem 11
You must find an approved location and secure a lease for the Franchised Restaurant within ninety (90) days after you sign your Franchise Agreement.
Marketing
Is the franchisee prohibited from operating its own website or social media accounts, or required to use pages the franchisor provides?
YesItem 11
You are prohibited from using the Marks and listing, marketing, advertising, or otherwise promoting your Franchised Business on or through the Internet, any social media site, mobile application, networking website, electronic media, or any emerging or future developed media outlet or platform, including Facebook®…
Is a minimum grand opening advertising spend required?
YesItem 11
You must conduct a Grand Opening Advertising Campaign for your Restaurant and expend $25,000 (the “Grand Opening Advertising Expenditure”).
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 expend 2% of Gross Revenues or $1,000, whichever is greater on local advertising, marketing, sponsorships, public relations and promotions specifically identifying or featuring your Restaurant in your local area (your “Local Marketing Expenditure Requirement”).
Must the franchisee participate in a customer loyalty or rewards program?
YesFranchise agreement
You shall participate in and comply with all terms and conditions of any gift card and/or loyalty program designated by Red Dot.
Operations
Must the franchisee buy products from a designated distributor?
YesItem 8
You must purchase all goods, items and services required for the development and operation of the Franchised Restaurant from our approved or designated suppliers for any given item of service.
Must equipment be purchased from designated or approved suppliers?
YesItem 8
You must purchase all goods, items and services required for the development and operation of the Franchised Restaurant from our approved or designated suppliers for any given item of service.
Payments
Must the franchisee use a payment processor or merchant-services provider designated or approved by the franchisor?
YesItem 11
You must also use the Toast POS System for merchant processing.
Are royalties and other fees collected by automatic bank debit (ACH or electronic funds transfer) from the franchisee's account?
YesItem 6
We require that all fees payable to us be paid through an electronic fund transfer, including automatic debits from your bank account(s), unless we specify otherwise.
Must the franchisee participate in a gift card program?
YesFranchise agreement
You shall participate in and comply with all terms and conditions of any gift card and/or loyalty program designated by Red Dot.
People
Does the franchisor require minimum staffing levels or specific roles?
YesItem 15
The Franchised Restaurant must always be under the direct, full-time, day-to-day supervision of the Responsible Owner or Designated Manager.
Must employees wear uniforms specified by the franchisor?
YesFranchise agreement
For Brand uniformity and protection purposes, you shall comply with such dress code as Red Dot may prescribe.
Point of sale
Must the franchisee use a specific point-of-sale system designated or approved by the franchisor?
YesItem 11
You must also use the Toast POS System for merchant processing.
Does the franchisor have independent access to the data in the franchisee's POS or computer system?
YesItem 11
We may independently access the information in your computer system to audit your sales or analyze your operations.
Sales and CRM
Must the franchisee use a CRM system designated or approved by the franchisor?
YesItem 11
You must use all computer hardware and software applications that meet our specifications. You must purchase our designated computer system.
Training
Can the franchisor charge the franchisee for additional, refresher or remedial training?
YesItem 11
You may be charged fees for additional training.
Is attendance at an annual convention or conference mandatory for the franchisee?
YesItem 11
We may require you to attend system conferences, including annual conferences, and to charge you a fee to attend.
The filing answers no to 2 questions
- 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 11
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 franchisee/operator personally, or a small franchisor still owner-run. Wears every hat.
- 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%.
- 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.
- 97.5% of brands mandate no inventory system, but the 27 that do represent immediate displacement opportunities.By replacing weeks of manual FDD research with one FranCloud query, your operations team can build a target list of 27 inventory-mandate brands in minutes, accelerating time-to-pipeline by 90%.
The vendor opportunity at The Red Chickz
The Red Chickz is a quick-service restaurant brand headquartered in Nevada, and the most recent FDD on file is from 2026. That filing reports 5 total locations — 3 franchised and 2 company-owned — with average unit volume of $1,457,743, a 6.0% royalty, and a 10-year initial term. Unit count grew 200% year over year — off a base this small, the system tripled rather than scaled. This is an early-stage account: too small for a seat-count deal, well sized for a vendor who wants the franchisor relationship before the unit curve steepens and the standards harden.
Who controls software purchasing
Item 1 names four people. Shahram (Shawn) Lalehzarian is Founder & CEO; Spencer Sabatasso is Vice President of Development; Goel Talasazan and Nima Christensen are Directors. No CIO, CTO, or other technology officer is disclosed in the most recent FDD, so the founder is the signer and the development VP is the closest thing to an operational evaluator. The Red Chickz has no parent company on file and appears independently owned, so there is no portfolio-level IT function above it to route through. Two of the five disclosed units are company-owned, and our operator mapping finds a single operator, none multi-unit, across roughly one located unit, in Wisconsin. There is no franchisee body to sell around: this is an HQ decision.
Tech named in the FDD, and what is actually required
One name in the filing carries a mandate: Sysco, which the FDD obliges the franchisee to use. That is a supplier obligation, not a software system — no point of sale, back office, scheduling, or marketing platform is required anywhere in the document. The other seven names are Facebook, Instagram, LinkedIn, Pinterest, TikTok, Twitter and Yahoo, and every one of them is named only. The FDD mentions them; nothing in it requires anyone to adopt them, and a platform named in a filing is evidence the drafter had it in mind, not evidence of an installed vendor. For a software vendor that reads as an open stack — no technology incumbent is written into the franchise agreement to displace. The categories a growing QSR needs — POS, payments, online ordering, labor, loyalty — are all uncommitted on the face of this filing.
Procurement, renewals, and timing
Item 8 — where designated-supplier and approved-supplier requirements normally sit — produced no extract from this filing, so the procurement model is not established by the disclosure text. The Sysco obligation is the one hard supplier signal we hold. Item 17 is more specific. The initial term runs 10 years with a 10-year successor term, and renewal requires written notice not less than 180 days before expiration, a successor fee equal to 50% of the then-current initial franchise fee, a general release, compliance with the existing agreement, completion of any refresher training the franchisor requires, and replacing, upgrading or updating equipment. That last condition is the timing hook: renewal here is contractually a re-equipment event, and re-equipment is when new systems get approved. With the current filing dated 2026 and the system tripling in a year, the practical window is earlier than any renewal — standards get set while the unit count is still in single digits.
How to read The Red Chickz FDD
The 2026 document was filed with state franchise regulators, and the full PDF is embedded in the viewer below. Item 1 gives the entity and the executives named above; Item 8 covers supplier obligations; Item 11 covers computer systems and required technology; Item 17 covers renewal and the equipment condition; Item 19 carries the $1,457,743 average unit volume; Item 20 carries the unit tables behind the 5-unit count. If you want The Red Chickz scored against the rest of the US franchise corpus and returned as a ranked target list, talk to FranCloud.
Questions vendors ask
The Red Chickz, answered from the filing
Read the filing itself
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FDD alert
Tell me when this brand refiles.
We’ll email you the moment The Red Chickz files a new annual FDD, usually the freshest signal of a vendor change.
Operator footprint
Who runs the locations
1 operators run 1 mapped locations. 0 of them are multi-unit. Aggregate counts from the filing; no names.
Operators by units owned
Top states by locations
| WI | 1 |
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Related Quick service restaurant brands
Primary franchise filings · updated August 2026. Every figure is source-traceable and QA-checked.