Clean Eatz Franchise Costs, Fees & FDD

Year Business Began: 2013

Franchising Since: 2016

Headquarters: Wilmington North Carolina

Estimated Number of Units: 110

Franchise Description: The franchisor is Clean Eatz Franchising LLC. The franchisor offers franchises for the operation of a quick-serve restaurant that features health-based meal plans, entrees, side items, snacks and drinks through café and catering, and meal plans under the “Clean Eatz” trademarks.
Training Overview: A guarantor of this Franchise Agreement must attend training. In addition, franchisees are permitted to have one other individual go through initial training without incurring additional costs. All training, except any on-site training, will be held at the franchisor’s corporate headquarters in Wilmington, North Carolina, or at another designated franchise. The franchisor may also provide franchisees on-site initial training at their franchise and assistance with respect to opening activities within the first four weeks of the operation of their franchise at no additional cost to them. There are not additional training programs or refresher courses required. However, the franchisor may hold periodic regional or national conferences to discuss on-going changes in the industry, operational techniques, developments, personnel training, bookkeeping, accounting, advertising programs and new service procedures. Franchisees are required to attend these conferences.

Territory Granted: Franchisees will receive the right to operate a franchise at a specific location described in the Franchise Agreement. The Franchise Agreement will also specify a designated territory that will provide franchisees with some territory protection (protected territory). The size and scope of the protected territory will be contained in the Franchise Agreement and will be determined on a case-by-case basis, but generally it will be based on either a five-mile radius from the café or a population density of 100,000 people, whichever comes first, however, the actual boundaries of the protected territory will be negotiated with the franchisor. The franchisor will not operate or grant, through its current trademark, any Clean Eatz fixed-location franchises within the protected territory.

Obligations and Restrictions: Franchisees or a fully trained and qualified manager, both of whom have completed the training program, must directly supervise and participate in the actual day-to-day operation the franchise “on premises.” Neither franchisees nor their manager may have an interest or business relationship with any of the franchisor’s business competitors. Franchisees must offer and sell only products and services, which are part of the Clean Eatz system. Franchisees are prohibited from offering products and services that are not part of the Clean Eatz system.

Term of Agreement and Renewal: The length of the initial franchise term is 10 years. If in good standing, one additional 10-year term is available if requirements are met.

Financial Assistance: The franchisor does not offer direct or indirect financing. The franchisor does not guarantee a franchisee’s note, lease, or obligation.

Estimated Initial Investment

Name of Fee	Low	High
Initial Franchise Fee	$49,500	$49,500
Travel and Living Expenses	$500	$2,000
Rent or Real Estate	$2,500	$18,000
Café Construction	$200,000	$483,000
Furniture	$0	$4,500
Signage	$5,000	$12,000
Miscellaneous Opening Costs	$4,000	$10,000
Initial Inventory	$10,000	$12,000
Equipment	$49,000	$144,000
Advertising/Marketing (3 months)	$2,000	$7,000
Insurance (yearly basis)	$2,500	$5,000
Technology Package	$8,700	$11,000
Additional Funds for Initial Three Months	$20,000	$40,000
ESTIMATED TOTAL	$353,700	$798,000

 
Other Fees

Type of Fee	Amount
Royalty Fee	6% of gross sales.
Local Marketing	Minimum of 1% of gross revenues per week.
National Advertising	2% of gross revenues per week.
Regional Advertising Cooperative	1% - 3% of gross revenues. Currently none.
Initial Training for Additional Persons and Continual Education (every three years after the franchise signing)	$150 per person per day.
Additional Assistance at the Franchisee’s Franchise	$500 per day (two day minimum) plus travel and living expenses.
Transfer Fee	$0 - 5,000
Audit	Cost of audit plus 1% interest per month on understatement.
Interest	1% per month.
Technology Fee	$150 per month.
Franchise Renewal Fee	$2,000
Computer, POS and Communications Equipment Upgrades and Maintenance	Varies, but usually no more than $5,000 per year.  Should a new POS vendor be required, the cost incurred to switch vendors should be no more than $10,000.
Liquidated Damages	$100 per day.
Lease Negotiation Fee	Up to $2,000 (actual costs).
Conference Fee	$1,750 to $3,000 per person.

The above information has been compiled from the FDD of Clean Eatz. Year of FDD: 2024.

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