From the filings
Software purchasing at The Toasted Yolk Franchise Company is controlled at the headquarters level, with a mandated tech stack that leaves little room for unit-level discretion. The chain operates 42 total locations (36 franchised, 6 company-owned) and reported a 24.1% year-over-year unit growth in its 2025 FDD. For vendors, the addressable market is compact but growing, and the mandate-driven model means a single ‘yes’ from the C-suite can unlock the entire system.
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.
5.5%of gross sales (FY2025)
15% reference
Franchisor behaviours
26 requirements the franchisor states in this filing, each in its own words; 2 explicit no's; 6 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 agrees to keep and maintain complete and accurate books and records of its transactions and business operations using the accounting procedures specified by Franchisor.
Does the franchisor have direct or independent electronic access to the franchisee's financial, sales or customer records?
YesItem 11
We have the right to independently access all information and financial data recorded by the system for daily polling, audit, and sales verification.
Must the franchisee submit periodic financial statements (monthly, quarterly or annual) to the franchisor?
YesFranchise agreement
Within thirty (30) days after the close of each calendar quarter and within ninety (90) days after the close of each fiscal year, Franchisee will furnish Franchisor a full and complete written statement of income and expense and a profit and loss statement for the operation of the Franchised Business during said…
How the franchisor buys
Is there a franchisee advisory council, association or committee?
YesFranchise agreement
Franchisor has established a franchisee advisory council as a formal means for System franchisees to communicate ideas.
Does the franchisor reserve the right to change designated suppliers or systems at any time?
YesItem 11
We reserve the right to change our POS system at any time during the term of your franchise agreement.
How much revenue did the franchisor and its affiliates earn from franchisee purchases in the last fiscal year?
0Item 8
During our fiscal year ending December 31, 2024, we did not receive any revenue, rebates, discounts or other material consideration from suppliers based on required purchases or leases by our franchisees.
Does the franchisor or an affiliate receive rebates, commissions or other revenue from designated or approved suppliers?
YesItem 8
From time to time, we may receive revenue, rebates, discounts or other material consideration from suppliers based on your required purchases of products, supplies or equipment.
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
We estimate that your purchase or lease of products, supplies and services from approved suppliers (or those which meet our specifications) will represent approximately 95% of your costs to establish your Franchised Business and approximately 75% to 85% of your costs for ongoing operation.
Does the franchisor charge a fee to evaluate a proposed supplier?
YesItem 8
If you request that we approve a proposed item or supplier, we may charge for our actual costs of product testing and evaluation.
Can a franchisee propose a new supplier for the franchisor's approval?
YesItem 8
If you would like us to consider another item or supplier, you must make such request in writing to us and have the supplier give us samples of its product or service and such other information that we may require.
Communications
Does the franchisor own or control the business telephone numbers, or take them over when the agreement ends?
YesFranchise agreement
Franchisee, at the option of Franchisor, shall assign to Franchisor all rights to the telephone numbers of the Franchised Business and any related public directory listing or other business listings and execute all forms and documents required by Franchisor and any telephone company at any time, to transfer such…
Data and IT
Must the franchisee comply with PCI, data-security or cybersecurity standards set by the franchisor?
YesFranchise agreement
Franchisee, at Franchisee’s sole cost and expense, shall implement all computer hardware, software and Internet security procedures, including required updates or upgrades thereto, that are reasonably necessary to protect Franchisee’s computer and payment processing systems and the data stored therein from viruses…
Franchise management
Does the franchisor conduct periodic inspections, audits or evaluations of the franchised business?
YesItem 11
conduct inspections of your Franchised Business, at the frequency and duration that we deem advisable.
Can the franchisor change the operations manual and brand standards unilaterally?
YesItem 17
Modification of the agreement Sections 9.4, 14.6, No oral modifications generally, but we may 19.1.4 and 22.4 change the Operations Manual and System standards at any time.
Must the franchisor approve the franchisee's site or location before opening?
YesFranchise agreement
No site may be used for the location of the Franchised Business unless it is consented to in writing by Franchisor.
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 any website or other listing on the Internet except as provided and specifically permitted herein.
Is a minimum grand opening advertising spend required?
YesItem 11
We require you to spend at least $20,000 in opening advertising and promotional activities during the thirty (30) days before and sixty (60) days following the opening of your Franchised Business in the Territory.
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
Thereafter, you are required to spend at least one percent (1%) of Gross Revenue per month, subject to increases not to exceed two percent (2%) of Gross Revenue per month, on local advertising to promote your Franchised Business.
Operations
Must the franchisee buy products from a designated distributor?
YesItem 8
You must purchase all inventory, equipment, computer systems and certain software from our designated suppliers and contractors or in accordance with our specifications.
Must equipment be purchased from designated or approved suppliers?
YesItem 8
You must purchase all inventory, equipment, computer systems and certain software from our designated suppliers and contractors or in accordance with our specifications.
Payments
Are royalties and other fees collected by automatic bank debit (ACH or electronic funds transfer) from the franchisee's account?
YesFranchise agreement
At Franchisor’s request, Franchisee must execute documents, including but not limited to, the Authorization attached as Attachment 3, that allow Franchisor to automatically take the Royalty Fee and Brand Fund Contribution due as well as other sums due Franchisor, from business bank accounts via electronic funds…
People
Does the franchisor require minimum staffing levels or specific roles?
YesFranchise agreement
Franchisee shall designate and retain at all times a general manager (“General Manager”) to direct the operation and management of the Franchised Business location.
Point of sale
Must the franchisee use a specific point-of-sale system designated or approved by the franchisor?
YesItem 11
You must purchase or lease, install, and maintain an electronic point of sale cash register system to record sales and transaction data (such as item ordered, price, and date of sale) that we designate.
Does the franchisor have independent access to the data in the franchisee's POS or computer system?
YesItem 11
We have the right to independently access all information and financial data recorded by the system for daily polling, audit, and sales verification.
Training
Can the franchisor charge the franchisee for additional, refresher or remedial training?
YesFranchise agreement
Franchisor reserves the right to impose a reasonable fee for all additional training programs.
Is attendance at an annual convention or conference mandatory for the franchisee?
YesItem 11
you must attend mandatory training programs that we offer for up to three (3) days each year, and an annual conference or national business meeting for up to three (3) days each year, at a location we designate.
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.
The Toasted Yolk Franchise Company operates 42 quick-service restaurants, with 36 franchised and 6 company-owned locations. The brand’s 2025 FDD reports an average unit volume (AUV) of $1,973,294.74 and a 24.1% year-over-year unit growth rate, signaling an expanding footprint. For software vendors, the total addressable market is currently 42 units, but the growth trajectory and a 5.0% royalty on a near-$2M AUV suggest healthy unit economics that can support technology investment. The chain is independently owned, with no parent company on file, meaning decisions are made within the HQ team in Texas without external corporate oversight.
Technology purchasing authority sits squarely at headquarters. The FDD lists Chris Milton as Chief Executive Officer and Co-Owner, and Matthew DeMott as President and Co-Owner, making them the ultimate decision-makers for any system-wide software adoption. Donnie Mixon, Vice President of Franchise, is the operational gatekeeper for franchisee-facing tools, while James Gray, Vice President of Emerging Brands, and Shan Peters, Director of Operations, are likely to influence evaluations for new technology that touches store-level execution or brand expansion. No multi-unit operators are mapped in our corpus, reinforcing that franchisees do not drive independent software procurement at scale.
The 2025 FDD mandates three specific technology systems. Craftable is required, covering inventory management and back-of-house operations. HungerRush is mandated for online ordering and digital marketing capabilities. The point-of-sale system is Revention POS, which franchisees must use. This tightly controlled stack means any vendor selling adjacent or replacement technology must either integrate with these systems or build a compelling case for displacement at the HQ level. There is no disclosed list of approved alternative vendors, so the mandate is absolute for franchisees.
Item 8 of the FDD, which typically outlines purchasing and procurement restrictions, was not extracted in the available data, so the designated-supplier versus approved-supplier model remains unclear for non-mandated categories. On the renewal side, Item 17 provides a concrete window: the initial franchise term is 10 years, and renewal terms are 5 years. To renew, franchisees must be in full compliance, have no more than three events of default, provide six months’ written notice, pay a successor agreement fee of 25% of the then-current initial franchise fee, and execute a new agreement that may contain materially different terms. These renewal events, combined with the brand’s recent growth, create periodic opportunities for vendors to present technology that aligns with updated franchise agreement requirements.
The full 2025 Franchise Disclosure Document is embedded below. Key sections for software vendors include Item 11, which details the franchisor’s obligations regarding the mandated Craftable, HungerRush, and Revention systems, and Item 19, which provides the financial performance data behind the $1.97M AUV. Review Item 17 for the precise renewal conditions that may trigger technology re-evaluation cycles. For a ranked target list of franchise brands matched to your software category, FranCloud can help you prioritize outreach based on mandate strength, growth rate, and decision-maker accessibility.
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 The Toasted Yolk Franchise Company files a new annual FDD, usually the freshest signal of a vendor change.
Operator footprint
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
| TX | 1 |
|---|
Related Quick service restaurant brands
Primary franchise filings · updated June 2026. Every figure is source-traceable and QA-checked.