Clean Eatz
Clean Eatz offers franchises for healthy restaurants featuring weekly meal plans and individual meals. Known for promoting healthy eating, it operates in the fast-casual dining sector.
Clean Eatz franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of a Clean Eatz Franchise is between $353,700 and $798,000. This includes a base Initial Franchise Fee of $49,500 for the first café, plus an additional Development Fee of $25,000 per each additional café under a Development Agreement [p.2].
What is the initial franchise fee?
The initial franchise fee for a single outlet is $49,500 and is fully earned upon payment; it is not refundable. [p.81]
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is 6% of gross revenue [p.69], while the advertising fee is either 1% or 2% of sales, with newer agreements after May 15, 2020, paying a 2% advertising fee [p.79].
How long is the initial franchise agreement, and can I renew it?
This isn't specified in the excerpts.
Can I sell or transfer my franchise, and what does that require?
You can transfer your franchise, but it requires approval from the company [p.164]. The transfer fee is $2,500 if you transfer to another franchisee of the company, and $5,000 in other cases [p.15]. Additionally, the transfer must not be at a lower price or on more favorable terms than disclosed to the franchisor [p.101]. This isn't specified in the excerpts for non-franchisee transfers to corporations, limited liability companies, children, parents, siblings, or spouses who are majority stockholders or members.
On what grounds can the franchisor terminate the agreement?
The franchisor may terminate the agreement on any grounds available by law [p.140]. However, termination without "reasonable cause" as defined by Virginia Retail Franchising Act or Virginia laws is unlawful [p.144]. Additionally, terms regarding termination and renewal might be superseded by RCW 19.100.180 or court decisions [p.145] and Illinois Franchise Disclosure Act provisions [p.132].
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts.
Do I get an exclusive or protected territory?
You will receive some territory protections ('Protected Territory') but it is not an exclusive territory. The size and scope of your Protected Territory will be based on either a five-mile (5) radius from your Café or a population density of 100,000 people, whichever comes first, as specified in the Franchise Agreement [p.32]. This isn't specified in the excerpts for Indiana-specific exclusions, so note that general protections may apply within a 50-mile radius [p.133].
What training and ongoing support does the franchisor provide?
The franchisor provides initial training lasting approximately 3-4 days, covering system operations, techniques, procedures, ordering, accounting, and quality standards [p.85]. This training is conducted at their corporate headquarters or another designated franchise location. The franchisor also offers on-site initial training within the first four weeks of opening your franchise free of additional cost [p.31]. Ongoing support includes manuals, forms, training aids, and videos, as well as assistance with opening activities and ongoing business operations [p.30].
How many franchised outlets are there, and how many have closed or been terminated?
According to [p.43], as of December 31, 2023, there were ninety eight (98) franchised outlets that had been open for at least eighteen months. This excerpt does not specify the number of closed or terminated outlets.
Does the franchisor share any financial performance or earnings information?
The franchisor does not make any financial performance representations [p.46]. However, if purchasing an existing outlet, you may receive actual records of that outlet's performance. The franchisor encourages independent investigation and consulting with advisors to assess potential financial performance [p.46].
What am I restricted to selling, and where must I buy supplies?
You are not restricted as to what services you can offer, but you must purchase certain items such as service items with logos, utensils, ingredients, and food from designated suppliers. These requirements may change in the future [p.37]. Additionally, you must use a point-of-sale (POS) register system and buy or lease specific software like QuickBooks for operation [p.21], and certain products listed in the Operations Manual can only be purchased from approved suppliers unless provided by the franchisor or its affiliates [p.19, p.22].