About CleanStart Systems Franchise
CleanStart Systems businesses provide commercial janitorial and cleaning services, along with related products.
Franchisees may also offer electrostatic disinfection, antimicrobial treatment, and environmental containment services for various facilities.
CleanStart Systems Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $19,500 | One-time payment upon signing |
| Royalty Fee | 10% of Gross Revenue of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 2% of Gross Revenue | National brand fund |
| Total Investment Range | $24,900 – $33,000 | Includes build-out, inventory, working capital |
The investment range of $25K–$33K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (10% of Gross Revenue) and marketing fee (2% of Gross Revenue) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $19,500 | $19,500 |
| Leasehold Improvements and Signage | $0 | $0 |
| Vehicle | $0 | $0 |
| Capital Equipment and Supplies | $1,000 | $2,000 |
| Technology, Office Equipment and Supplies | $1,000 | $3,000 |
| Start-Up Marketing | $500 | $1,000 |
| Insurance | $800 | $1,000 |
| Professional Fees | $300 | $1,000 |
| Licenses/Bonds | $200 | $400 |
| Your Out-of-Pocket Expenses While Attending Training | $600 | $2,100 |
| Working Capital (Additional Funds over next 3 months) | $1,000 | $3,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $5,000, plus all our reasonable other fees and costs incurred in approving the transfer |
| Renewal Fee | $5,000 |
| Technology Fee | $100 |
| Audit Fee | Actual Costs Reimbursement of our actual auditing costs |
| Interest | Varies, Highest contract rate of interest permitted by law |
| Administrative Support Services Fee | 3% of Gross Revenue |
| Account Purchase Fee | For customer accounts with expected monthly gross billings less than $10,000, the fee is calculated by multiplying 1 month of expected monthly gross billings for the customer account and 2.75%. For customer accounts with expected monthly gross billings $10,000 or more, the fee is calculated by multiplying 1 month of expected monthly gross billings for the customer account and 2.5%. |
| Service Fee | $50 per man hour for any individual required to service your customer account plus all our related expenses |
| Professional Organization Fees | Varies, but estimated not to exceed $2,000 annually |
| Additional Owner or Employee Initial Training Fees | $250 per person |
| Additional Ongoing Required Training Fees | Varies |
| Supplementary Training Fees | Varies |
| Per Day Fee | Up to $300 per person, subject to change |
| Costs and Attorney’s Fees | Actual Costs Reimbursement of our actual costs |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 2 days |
| Classroom Training | 8 hours |
| On-the-Job Training | 8 hours |
| Training Location | New York |
| Additional Training | We may require your Managing Owner and/or previously trained and experienced employees to attend additional required training courses at such times and locations that we designate, and we may charge reasonable fees for such courses. If you have additional employees that require training from us we may charge you a fee for this training. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Non-exclusive |
| Exclusive Territory | No |
| Description | Your Territory will be defined as a specific geographic area identified using commonly understood state, county, municipal or postal area definitions. We will not operate, or license another person to operate another CLEANSTART SYSTEMS business within your Territory. However, you may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control. National Accounts are excluded from the exclusivity of your Territory. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | 10 years |
| Renewal Fee | $5,000 |
| Renewal Conditions | Renewal means continued rights to operate in the same Territory as identified in the initial Franchise Agreement. You may need to bring the franchise into compliance with our system standards, and will need to sign a new franchise agreement and pay a renewal franchise fee. The renewal franchise agreement may contain terms or conditions that materially differ from your original Franchise Agreement. |
| Transfer Fee | $5,000, plus all our reasonable other fees and costs incurred in approving the transfer |
| Transfer Conditions | Our approval of any transfer is required prior to your transferring the Franchise to a third party. However, will not unreasonably withhold our approval where the proposed transferee meets all our conditions for approval. You must pay our transfer fee and all other expenses we incur in approving the transfer. The proposed transferee must meet our standards as to character, financial resources, and willingness to assume the existing obligations under the Franchise Agreement, sign our then-current form of franchise agreement, and complete training. |
| Termination for Cause | We have the right to terminate the Franchise Agreement with cause. Certain defaults may be cured by you following your receipt of our written notice. Certain defaults are inherently incurable and will result in termination of the Franchise Agreement. |
| Non-Compete Period | 48 months |
| Non-Compete Details | After termination or expiration of the Franchise Agreement, you may not operate a similar type of business for a period of 48 months within one hundred (100) miles from your principal business address, or provide janitorial or cleaning services within fifty (50) miles from the principal business address of any other then-existing CLEANSTART SYSTEMS business. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | The Managing Owner must personally manage and operate the franchise as a primary occupation. There is no minimum equity ownership requirement for the Managing Owner. If an 'on-premises' manager is distinct from the Managing Owner, they do not need an equity share but must complete all required training. |
| Required Suppliers | The personal property listed in Item 7 must be purchased by you from us, our approved suppliers or according to our specifications. We may require that you purchase all cleaning products from us or from our approved supplier. |
| Supply Restrictions | You may only offer the services and products that we authorize and approve. We may terminate your franchise if you purchase services and goods that are not according to our specifications or that are not from our approved suppliers. |
| Franchisor Revenue from Suppliers | No revenue derived by Franchisor or its Affiliate from required purchases by franchisees in fiscal year ending December 31, 2021. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | Yes |
| Description | We may offer you financing for the purchase of customer accounts. We do not offer any other direct or indirect financing. The financed amount of the Purchased Customer Account is evidenced by a Promissory Note and is payable over a twenty four month period in equal monthly installments with no interest payable. We reserve the right to change the terms and amounts financed. Down payment is 20% for 12 installments or 25% for 18 installments. Security required includes Partner or Shareholder Guarantee and Pledge of the Franchise. |
CleanStart Systems Franchise Earnings — Item 19
CleanStart Systems does not include an Item 19 financial performance representation in their FDD. Contact information for current and former franchisees is listed in Item 20 of the FDD.
CleanStart Systems 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.
CleanStart Systems System Growth
CleanStart Systems currently operates 2 franchised locations and 1 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2019 | 0 | 0 | 3 |
| 2020 | 0 | 0 | 3 |
| 2021 | 0 | 1 | 2 |
Transfers: 0 | Closures: 1
State Registrations
Registered in 14 states: CA, HI, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
CleanStart Systems Franchise — FAQ
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