Clean Eatz Franchise in 2024: Costs, Fee & FDD
Explore the potential of Clean Eatz with our in-depth analysis! Discover the costs, earnings, and key factors behind this thriving health-focused franchise. Learn why Clean Eatz might be your next great healthy restaurant franchise opportunity.
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Clean Eatz, co-founded by Don and Evonne Varady in 2013, is a franchise built on a mission to “Change Livez.” With a focus on clean, balanced eating, Clean Eatz is a unique player in the health-conscious food market. The brand stands out by combining nutritious meal plans with motivational support and wellness education, all designed to help individuals reach their personal health goals. The company began franchising in 2015, and since then, it has attracted entrepreneurs passionate about promoting healthy lifestyles.
At the heart of Clean Eatz’s offering are its meal plans, which cater to a variety of dietary needs, making it accessible to a broad audience. In addition to meal plans, they offer grab-and-go meals, smoothies, and snacks, with a primary customer base that includes fitness enthusiasts, busy professionals, and anyone looking for convenient, healthy food options. Clean Eatz emphasizes that wellness is not “one-size-fits-all,” appealing to those seeking personalized nutritional products and fitness solutions.
The franchise has expanded impressively since its franchising launch, boasting over 90 locations across the U.S., and it continues to grow. Clean Eatz attracts a daily customer base that appreciates its accessible, nutritious meals. With a presence only in the U.S. currently, its growing number of locations signals the increasing demand for health-focused, convenient dining options.
Franchisees receive extensive support from the Clean Eatz team, which includes comprehensive training on everything from operations to nutrition education. They also benefit from marketing support and a robust system to ensure success. Franchisees have access to ongoing guidance and resources to help them run a successful location while contributing to the brand’s mission of making clean eating accessible to all.
Clean Eatz Franchise Insights
- Since starting franchising in 2015, Clean Eatz has expanded to over 70 locations across the U.S., reflecting its growing popularity and market demand for healthy, convenient meal options.
- Clean Eatz focuses on a personalized approach to wellness, providing tailored meal plans and fitness opportunities that cater to diverse lifestyle needs, appealing to a wide customer base.
- Each Clean Eatz location serves a significant number of customers daily, emphasizing the brand’s strong customer appeal and its role in promoting healthy eating habits nationwide.
- Clean Eatz has experienced a remarkable 107% growth rate over the past three years, significantly outperforming the industry median of just 4%, highlighting its rapid expansion and strong market presence.
Clean Eatz Franchise Key indicators
Growth YOY (%)
16%
vs industry 0%
Total U.S. Franchised Units
99
3-Year Failure Rate
11%
vs industry 10%
Sales-to-Investment ratio
1.7:1
How much does it cost to open a Clean Eatz franchise?
Understanding the potential investment size and capital requirements is crucial when considering opening a Clean Eatz franchise. These financial commitments, including initial franchise fees, equipment costs, and ongoing operational expenses, impact the feasibility and profitability of the venture. Thoroughly evaluating these factors ensures that potential franchisees are prepared for the financial responsibilities and can make informed decisions about their ability to sustain and grow the business, ultimately contributing to long-term success.
Min & Max Investment
Opening a Clean Eatz franchise involves several key costs, which are outlined in Item 7 of the Franchise Disclosure Document (FDD). You can see a breakdown of the costs to open a Clean Eatz below from the most recent Item 7 below:
| Type of Expenditure | Minimum Investment | Maximum Investment |
|---|---|---|
| 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 3 Months | $20,000 | $40,000 |
| Total Estimated Initial Investment | $353,700 | $798,000 |
Item 7 in the Franchise Disclosure Document (FDD) is the “Estimated Initial Investment” section. It outlines the total costs a franchisee can expect to incur when starting a franchise, including the initial franchise fee, equipment, inventory, real estate, and other startup expenses. This section is crucial because it provides potential franchisees with a detailed understanding of the financial commitment required, helping them assess affordability and plan their investment strategy effectively.
Required Capital
To open a Clean Eatz franchise or a similar one in the industry, here’s a general breakdown of the required financial metrics:
- Total Investment Range The total investment for a Clean Eatz franchise ranges from $354,000 to $798,000. This investment covers a variety of costs including real estate, construction, equipment, initial inventory, and working capital. Assuming that you will finance your franchise investment, you should plan to have 20% of the total investment amount in the form of equity (cash) for the investment.
- Liquid Assets Requirement Typically, franchise systems in the food sector require liquid assets of approximately $100,000 to $150,000. This liquidity ensures that franchisees can manage initial operational expenses and unforeseen costs effectively.
- Net Worth Requirement A net worth of around $500,000 to $1 million is often required. This net worth requirement includes all assets such as property, savings, and other investments, ensuring that franchisees have the financial stability to support the franchise and handle any economic fluctuations.
How much does a Clean Eatz franchise owner make?
Calculating the salary of a Clean Eatz franchise owner involves analyzing gross sales to determine total revenue, assessing operational efficiency to understand profit margins, and accounting for franchisor fees and additional expenses such as rent, utilities, and payroll. Effective management of these factors can significantly impact the profitability and financial success of a Clean Eatz franchise owner. This comprehensive financial analysis helps estimate net profits, from which the owner’s salary can be derived. A clear understanding of these factors ensures accurate salary projections and financial planning for sustainable business operations.
Clean Eatz Revenue & Gross Sales
Clean Eatz has demonstrated strong revenue performance, with median gross sales reaching $976,634. This figure reflects the brand’s robust market presence and growing popularity in the food sector. The impressive sales performance underscores Clean Eatz’s successful model and its appeal to customers seeking healthy, convenient meal options.
Which key factors impact the average revenue performance of Clean Eatz franchisees?
The performance of Clean Eatz’s U.S. franchisee median gross sales is likely driven by several key factors. The franchise’s focus on clean, balanced meals caters to the growing consumer demand for health-conscious dining options, offering convenience with its grab-and-go meals and meal plans. The brand’s commitment to personalized wellness solutions and strong customer support further enhances its appeal. Additionally, effective marketing strategies and a solid operational model contribute to consistent revenue generation. Clean Eatz’s expanding market presence and positive reputation also play a crucial role in driving sales and attracting a loyal customer base.
Clean Eatz Franchise Operational Costs
When opening a Clean Eatz franchise, understanding the primary ongoing operational costs is crucial for financial planning and ensuring smooth operations. These costs are essential to maintaining daily business functions and delivering quality service.
- Rent and Utilities Regular expenses for leasing commercial space and covering utilities such as electricity, water, and gas.
- Inventory and Supplies Continuous procurement of fresh ingredients, meal prep supplies, and packaging materials required to operate the business efficiently.
- Labor Costs Salaries and wages for staff, including kitchen personnel and front-of-house employees, as well as employee benefits and taxes.
- Maintenance and Repairs Costs associated with maintaining and repairing kitchen equipment, appliances, and facility upkeep to ensure optimal performance and safety.
Understanding and managing these operational expenses effectively will help ensure the profitability and sustainability of your Clean Eatz franchise.
Clean Eatz Franchise Fees
When considering the financial aspects of opening a Clean Eatz franchise, it’s important to factor in the ongoing fees that contribute to the brand’s operational framework and marketing efforts. These fees are integral to ensuring consistent support and maintaining brand standards.
- Royalty Fee Clean Eatz charges a royalty fee of 6% of gross sales, payable weekly. This fee supports the ongoing use of the brand’s name, proprietary systems, and overall business support.
- National Advertising A national advertising fee of 2% of gross revenues per week helps fund Clean Eatz’s broader marketing campaigns, enhancing brand visibility and driving customer traffic.
- Local Marketing Franchisees are required to spend a minimum of 1% of gross revenues per week on local marketing. This investment supports targeted promotional efforts to attract and retain customers in the local market.
- Additional Fees There are additional fees for training programs, technology, and other items provided by Clean Eatz that may be applied.
Understanding these fees will help you manage your financial commitments effectively and leverage the support provided to maximize your franchise’s success.
Clean Eatz Franchise Earnings
The earnings potential for a Clean Eatz franchise owner can vary based on factors like location, sales volume, and operational efficiency. However, with median gross sales of approximately $976,634, Clean Eatz franchisees have the potential to earn a substantial income. For owner-operators, the estimated earnings are around $146,000, reflecting a solid operating profit margin of 15%. This demonstrates that active involvement in the day-to-day operations can lead to significant financial rewards.
These figures illustrate the potential for profitability in a Clean Eatz franchise, especially for those who are hands-on in managing their business. By effectively leveraging the franchise’s support systems and maintaining operational efficiency, owner-operators can achieve impressive returns, making it a promising investment for dedicated entrepreneurs.
How to Open a Clean Eatz Franchise
Becoming a franchisee involves a structured process that ensures both the franchisor and potential franchisee are well-aligned. Here’s an overview of the key steps from the initial inquiry to the start of operations:
- Initial Inquiry You or your franchise specialist submits an initial inquiry basic information about your interest and background. You should also conduct thorough research on the franchise, including seeing all of the information available on the Vetted Biz franchise intelligence platform, including access to the most recent Franchise Disclosure Document (FDD).
- Franchise Application Complete and submit the franchise application form provided by Clean Eatz. This form will gather essential information about your background, financial status, and business experience.
- Discovery Day Attend a Discovery Day, where you will visit a Clean Eatz location, meet the franchise team, and gain deeper insights into the business model and operations.
- Franchise Agreement If both parties decide to move forward, you’ll sign the franchise agreement. This legal document outlines the terms and conditions of your franchise relationship.
- Training and Support Participate in the comprehensive training program provided by Clean Eatz. This will cover various aspects of running the franchise, including operational procedures, marketing, and customer service.
- Site Selection and Setup Work with Clean Eatz to select and set up your franchise location. This includes leasing or purchasing a property, outfitting the space, and procuring necessary equipment.
- Grand Opening Once everything is in place, you’ll launch your Clean Eatz franchise. The grand opening will be supported by marketing efforts to attract initial customers and establish your presence in the local market.
Pros & Cons
Pros
Strong Market Demand: Clean Eatz capitalizes on the growing trend towards healthy eating and convenient meal solutions, meeting the increasing consumer demand for nutritious options.
Established Brand: With a solid reputation and a mission-driven approach, Clean Eatz offers a recognizable brand that attracts health-conscious customers.
Proven Financial Performance: The franchise’s median gross sales and operating profit margin indicate strong financial performance, providing potential for substantial earnings.
Cons
Market Saturation Risk: As Clean Eatz continues to expand, there could be increased competition among franchise locations, which may affect individual franchisee performance.
Complex Supply Chain: Managing inventory and ensuring consistent supply of fresh, healthy ingredients can be complex and may require robust logistics and supplier relationships.
High Competition: The health food market is competitive with numerous players offering similar products. Standing out and maintaining customer loyalty can be challenging.
Economic Sensitivity: Economic downturns can impact discretionary spending on healthier, premium-priced meals, potentially affecting sales and profitability.
