5(B)) Computer Hardware and Software Requirements You must obtain a computer system consisting of the Software, a laptop or desktop computer with access to broadband Internet, and Intuit’s QuickBooks
From the filings
Touching Hearts
Health servicesSoftware purchasing at Touching Hearts is controlled at the headquarters level, with Andrew Lungstrom serving as both CFO and Director of Information Technology. The franchise currently mandates QuickBooks Pro by Intuit Inc. and WellSky across its network of 69 franchised locations. With an average unit volume of $1,213,802 and 6.15% year-over-year unit growth, the addressable market for vendors is a concentrated but expanding health-services franchise system.
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.
8%of gross sales (FY2026)
15% reference
Mandated & recommended tech
The systems vendors compete with
3 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.
puter Hardware and Software Requirements You must obtain a computer system consisting of the Software, a laptop or desktop computer with access to broadband Internet, and Intuit’s QuickBooks Pro. The
btain a computer system consisting of the Software, a laptop or desktop computer with access to broadband Internet, and Intuit’s QuickBooks Pro. The current designated Software is WellSky, although we
Franchisor behaviours
What the franchisor requires
25 requirements the franchisor states in this filing, each in its own words; 2 explicit no's; 7 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
During the term of this Agreement, you will, at your expense, establish and maintain at the Business premises and retain for a minimum of six (6) years from the date of their preparation, an accounting and record keeping system we designate that will generate complete and accurate books, records, and accounts…
Does the franchisor have direct or independent electronic access to the franchisee's financial, sales or customer records?
YesItem 11
We will have independent access to the information that is generated or stored on your computer system (collectively the “Customer Data”).
Must the franchisee submit periodic financial statements (monthly, quarterly or annual) to the franchisor?
YesFranchise agreement
(3) monthly income statements in a format we require;
How the franchisor buys
Is the franchisor or an affiliate itself a supplier of required products, services or systems?
YesFranchise agreement
You agree that certain products, supplies, equipment, and other items may only be available from one source, and we or our affiliates may be that source.
Is there a franchisee advisory council, association or committee?
YesItem 11
In 2026, we formed a Marketing Committee comprised of franchisees who serve in an advisory capacity to us.
Does the franchisor reserve the right to change designated suppliers or systems at any time?
YesFranchise agreement
We periodically may modify the lists of approved and designated products, supplies, equipment, brands and suppliers.
How much revenue did the franchisor and its affiliates earn from franchisee purchases in the last fiscal year?
4333Item 8
For the fiscal year ending December 31, 2025, we received $4,333 as a result of franchisee purchases of products and services from approved suppliers, which is less than 0.2% of our total revenue of $3,731,364, based on our audited financial statements attached as Exhibit E).
Does the franchisor or an affiliate receive rebates, commissions or other revenue from designated or approved suppliers?
YesItem 8
We (directly or through an affiliate) may derive revenue directly or in the form of rebates or other payments from suppliers, based directly or indirectly on sales of products, advertising materials and other items to franchisees, and from other service providers.
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
We estimate the cost of the goods and services you must purchase from us or from approved suppliers or in compliance with our specifications and standards will represent approximately 70% to 90% of the cost to develop the Business and 30% to 50% of the cost to operate your Business.
Does the franchisor charge a fee to evaluate a proposed supplier?
YesFranchise agreement
You must pay our then-current evaluation fee for each item or supplier you request that we evaluate, plus the costs we incur in connection with testing, inspecting and evaluating the proposed item or supplier.
Can a franchisee propose a new supplier for the franchisor's approval?
YesItem 8
If you desire to purchase any items, services or products from suppliers not previously approved by us, you must submit to us written notice of a proposed supplier.
Communications
Does the franchisor own or control the business telephone numbers, or take them over when the agreement ends?
YesFranchise agreement
You acknowledge that we have the sole right to and interest in all telephone numbers and directory listings associated with the Marks, and you authorize us, and appoint us as your attorney-in-fact, to direct the telephone company and all listing agencies to transfer such numbers and listings to us;
Data and IT
Must the franchisee comply with PCI, data-security or cybersecurity standards set by the franchisor?
YesFranchise agreement
You must maintain a secure technology infrastructure that meets our then-current requirements.
Franchise management
Does the franchisor conduct periodic inspections, audits or evaluations of the franchised business?
YesItem 11
Periodically inspect your Business and provide advice regarding System standards.
Can the franchisor change the operations manual and brand standards unilaterally?
YesFranchise agreement
You agree to promptly comply with all modifications and updates we may make to the System standards in the Operations Manual or otherwise in writing.
Must the franchisor approve the franchisee's site or location before opening?
YesFranchise agreement
You must operate your Business in a retail office, industrial park or other commercial location that is centrally located within the Protected Territory and that we have approved (“Office”).
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 any Mark or portion of any Mark on any website without our prior written approval.
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 each calendar month the greater of $300 or 2% of the previous calendar month’s Gross Revenues on “approved” Business marketing and promotional activities in your local geographic area (“Local Marketing Spend”).
Operations
Must the franchisee buy products from a designated distributor?
YesItem 8
You may purchase only approved brands, types and models of equipment, signage and supplies which meet our specifications, and only from approved suppliers we designate, in our discretion.
Must equipment be purchased from designated or approved suppliers?
YesItem 8
You may purchase only approved brands, types and models of equipment, signage and supplies which meet our specifications, and only from approved suppliers we designate, in our discretion.
Payments
Are royalties and other fees collected by automatic bank debit (ACH or electronic funds transfer) from the franchisee's account?
YesFranchise agreement
We will require you to sign electronic funds transfer (EFT) authorizations and other documents as we periodically designate to authorize your bank to transfer, either electronically or through some other method of payment we designate, directly to our account and to charge your account for all Service Fees…
People
Does the franchisor require minimum staffing levels or specific roles?
YesItem 15
The General Manager is responsible for day-to-day Business operations, and must devote his/her personal full time and attention to the management of your Business.
Point of sale
Does the franchisor have independent access to the data in the franchisee's POS or computer system?
YesItem 11
We will have independent access to the information that is generated or stored on your computer system (collectively the “Customer Data”).
Training
Can the franchisor charge the franchisee for additional, refresher or remedial training?
YesFranchise agreement
We may charge you our then-current fee, plus any costs and expenses we incur, for these supplemental and refresher training programs, and you will reimburse us for any costs and expenses we incur.
Is attendance at an annual convention or conference mandatory for the franchisee?
YesFranchise agreement
We may periodically hold or sponsor, and you must attend, franchise conventions and meetings relating to new Approved Services, new operational procedures or programs, recognition of successful franchisees, training, business management, sales and sales promotion or similar topics.
The filing answers no to 2 questions
- Is a minimum grand opening advertising spend required?Item 11
- Must the franchisee participate in a regional advertising cooperative when one exists?Item 11
The vendor opportunity at Touching Hearts
Touching Hearts operates a network of 69 franchised locations, all within the health-services segment. The brand reported an average unit volume of $1,213,802 in its 2026 FDD, with a 6.154% year-over-year unit growth rate. For software vendors, this represents a modest but active target: a system adding new units that must comply with HQ-mandated technology from day one. The franchise is headquartered in Minnesota and appears independently owned, with no parent company on file.
Who controls software purchasing
The buying center at Touching Hearts is concentrated at headquarters. Andrew Lungstrom holds the dual role of Chief Financial Officer and Director of Information Technology, making him the central figure for any software evaluation or procurement. Other executives listed in the FDD include Todd Treml (CEO), Ryan Lungstrom (CMO), Glenn Leingang (VP of Franchise Development), and Kimberly Holtmeier (VP of Franchise Operations). Vendors should direct technical and financial pitches to Lungstrom, while operational or marketing-adjacent tools may require buy-in from the respective VPs.
Mandated and current tech stack
The 2026 FDD mandates two systems across the franchise network: QuickBooks Pro by Intuit Inc. and WellSky. QuickBooks Pro handles core financial management, while WellSky is a platform commonly used in health-services organizations for operational and care-related workflows. No other mandated or recommended technology is disclosed in the current filing. Vendors offering complementary or replacement solutions must be prepared to integrate with or displace these entrenched systems, particularly WellSky, which is deeply embedded in the health-services vertical.
Procurement, renewals, and timing
Specific procurement rules under Item 8 are not extracted in the available data, so it remains unclear whether Touching Hearts uses a designated supplier model, an approved supplier list, or an open procurement process. The initial franchise term is 10 years, and compliant franchisees may extend for up to two additional 5-year terms. This long-term contractual structure means that system-wide technology changes may be infrequent, but the steady unit growth creates recurring onboarding opportunities for mandated tools. Vendors should time outreach around new franchisee onboarding cycles and any publicly signaled HQ-led digital transformation initiatives.
How to read the Touching Hearts FDD
The full 2026 Franchise Disclosure Document is available in the embedded viewer below. Key sections for software vendors include Item 11, which details the franchisor’s obligations regarding mandated systems, and Item 17, which outlines renewal conditions that can signal when franchisees may have leverage to renegotiate their tech stack. The FDD is filed with state franchise regulators and provides the most authoritative source for compliance requirements, fee structures, and executive contacts. For a ranked target list of franchise systems matched to your software category, FranCloud can help.
Questions vendors ask
Touching Hearts, answered from the filing
Read the filing itself
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FDD alert
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Operator footprint
Who runs the locations
65 operators run 65 mapped locations. 0 of them are multi-unit. Aggregate counts from the filing; no names.
Operators by units owned
Top states by locations
| TX | 9 |
|---|---|
| FL | 7 |
| CO | 6 |
| NY | 6 |
| PA | 4 |
Related Health services brands
Primary franchise filings · updated June 2026. Every figure is source-traceable and QA-checked.