About Clean Eatz Franchise
Clean Eatz offers franchises to operate a healthy restaurant that features weekly meal plans and individual meals for in Café and take-home eating.
Each Outlet operates under the Clean Eatz trademarks, trade names, service marks, and logos.
Clean Eatz Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $49,500 | One-time payment upon signing |
| Royalty Fee | 6% of Gross Sales, $100 weekly minimum of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 2% of Gross Revenues per week (National Advertising), Minimum of 1% of Gross Revenues per week (Local Marketing), 1%-3% of Gross Revenues (Regional Advertising Cooperative, if established) | National brand fund |
| Total Investment Range | $256,000 – $672,000 | Includes build-out, inventory, working capital |
The investment range of $256K–$672K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (6% of Gross Sales, $100 weekly minimum) and marketing fee (2% of Gross Revenues per week (National Advertising), Minimum of 1% of Gross Revenues per week (Local Marketing), 1%-3% of Gross Revenues (Regional Advertising Cooperative, if established)) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $49,500 | $49,500 |
| Travel and Living Expenses | $500 | $2,000 |
| Rent or Real Estate | $2,500 | $16,000 |
| Café Construction | $140,000 | $377,000 |
| Furniture | $0 | $5,000 |
| Signage | $5,000 | $20,000 |
| Miscellaneous Opening Costs | $4,000 | $10,000 |
| Initial Inventory | $10,000 | $12,000 |
| Equipment | $14,500 | $110,000 |
| Advertising/Marketing (3 months) | $5,000 | $10,000 |
| Insurance (Yearly basis) | $2,500 | $5,000 |
| Technology Package | $2,500 | $4,000 |
| Additional Funds for Initial three (3) Months | $20,000 | $40,000 |
| Delayed Opening Fee | $0 | $1,500 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $0 - 5,000. |
| Renewal Fee | $2,000 |
| Technology Fee | $150.00 per month |
| Audit Fee | Cost of audit plus 1% interest per month on understatement (if understatement of 2% or more) |
| Initial Training for Additional Persons and Continual Education | $150 per person per day |
| Additional Assistance at Your Franchise | $500 per day (two day minimum) plus travel and living expenses |
| Interest on Late Payments | 1% per month |
| Computer, POS and Communications Equipment Upgrades and Maintenance | Varies, but usually no more than $5,000 per year (up to $10,000 for new POS vendor) |
| Liquidated Damages | $100.00 per day |
| Lease Negotiation Fee | Up to $2,000.00 (actual costs) |
| Conference Fee | $1,000 to $2,000 per person |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | approximately 3-4 days |
| Classroom Training | Minimum of 7 Hours |
| On-the-Job Training | Minimum of 41 Hours |
| Training Location | Corporate headquarters in Wilmington, North Carolina, or at another designated franchise. |
| Additional Training | Franchisor reserves the right to hold and require franchisees to attend annual conferences to discuss industry changes, sales techniques, personnel training, bookkeeping, accounting, inventory control, performance standards, and advertising programs. Franchisees are required to pay a conference fee and all personal travel expenses. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected |
| Exclusive Territory | No |
| Territory Size | Determined on a case-by-case basis, generally based on a radius from the Café or population density, negotiated with the franchisor. |
| Description | Franchisees receive a Protected Territory but not an exclusive one, meaning they may face competition from other franchisees, company-owned outlets, or other distribution channels. The franchisor will not operate or grant other Clean Eatz fixed-location franchises or similar competitive businesses within the Protected Territory. Franchisees must operate from an approved site and cannot relocate without consent. Satellite Drops must be within the Protected Territory. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | one additional ten-year term |
| Renewal Fee | $2,000 |
| Renewal Conditions | Franchisee must sign a new agreement, be current in payments, and pay the Renewal Fee. The new agreement may have materially different terms and conditions, but the territory boundaries will remain the same, and the continuing royalty will not be greater than for similarly-situated renewing franchisees. |
| Transfer Fee | $0 - 5,000. |
| Transfer Conditions | Transferee must have sufficient business experience, aptitude, and resources; all monies owed to franchisor and others must be paid; transferee must complete initial training; transferee must sign the then-current standard franchise agreement; payment of transfer fee; franchisee must sign a release; transferee's financing must be subordinated to monies owed to franchisor; landlord must allow lease assignment; and both franchisee and transferee must sign a separate non-compete. |
| Termination for Cause | The franchisor can terminate for cause, including failure to comply with the System, non-payment of fees, failure to comply with laws (with 30 days to cure). Non-curable defaults include misrepresentation, failure to complete initial training, bankruptcy, abandonment, trademark misuses, and unapproved transfers. |
| Non-Compete Period | 2 years |
| Non-Compete Details | During the term and for 2 years after termination/expiration, neither the franchisee nor its owners/managers shall compete with the franchisor or its franchisees. Competition is defined as owning, financing, being employed by, investing in, or consulting with a quick-serve, healthy eating restaurant or a business providing pre-made health-focused meals within a 20-mile radius from the Protected Territory boundary or any other Clean Eatz franchise/company-owned location, or on the Internet. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | The franchisee or a fully trained and qualified manager must directly supervise and participate in the actual day-to-day operation of the franchise on premises. Neither the franchisee nor the manager may have an interest or business relationship with any of the franchisor's business competitors. The designated manager and certain owners must execute a Nondisclosure and Non-Competition Agreement. |
| Required Suppliers | Franchisees must purchase all snack line and marketplace items (e.g., Clean Eatz Snack Bars, fudge, Buckeyes, Clean Crunch) from Clean Eatz Marketplace, LLC. All restaurant equipment must be purchased from the franchisor's exclusive equipment supplier. |
| Supply Restrictions | Franchisees must submit names of proposed suppliers for approval, but outside suppliers for restaurant equipment or prepackaged snacks will not be approved. Restaurant equipment must be purchased exclusively from the franchisor's exclusive equipment supplier, and prepackaged snacks exclusively from Clean Eatz Marketplace, LLC. |
| Franchisor Revenue from Suppliers | In fiscal year 2021, the franchisor received $221,963.01 in revenue from suppliers from required purchases or leases by franchisees, which constituted 2.9% of its total revenues of $4,927,547.00. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | Clean Eatz does not offer direct or indirect financing. The franchisor does not guarantee your note, lease, or obligation. |
Clean Eatz Franchise Earnings — Item 19
Past financial performance does not guarantee future results. Individual results will vary.
Clean Eatz Litigation & Risk Flags
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Clean Eatz System Growth
Clean Eatz currently operates 67 franchised locations and 2 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2019 | 7 | 5 | 44 |
| 2020 | 8 | 1 | 51 |
| 2021 | 20 | 2 | 69 |
Transfers: 1 | Closures: 2
State Registrations
Registered in 30 states: CA, CT, FL, GA, HI, IL, IN, IA, KY, LA, ME, MD, MI, MN, NE, NH, NY, NC, ND, OH, OK, OR, RI, SC, SD, TX, UT, VA, WA, WI
Franchisor Financials (Item 21)
Clean Eatz Franchise — FAQ
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