Clean Eatz Franchise Costs $358K – $762K (+ 2024 Profits)

Clean Eatz is a distinctive franchise that entered the health-focused dining sector in 2013. Founded by Don and Evonne Varady, the franchise aims to promote healthier lifestyles through a comprehensive approach that includes not only balanced food options but also educational and motivational support to inspire lasting wellness changes. With its headquarters in Wilmington, North Carolina, Clean Eatz began offering franchises in 2015.

Clean Eatz distinguishes itself in the competitive fast-casual market with a unique multi-revenue stream model that encompasses dine-in, Grab ‘N Go, catering, marketplace items, and weekly online meal plans. 

This diverse service offering is complemented by the franchise’s commitment to affordable, convenient, and health-conscious dining options, tailored to meet the varied dietary needs and preferences of its customers.

Type of Expenditure	Amount
Initial Franchise Fee	$50,000
Travel and Living Expenses	$1,000 – $2,000
Rent or Real Estate	$2,000 – $16,000
Café Construction	$200,000 – $380,000
Furniture	$0 – $5,000
Signage	$5,000 – $20,000
Total	$358,000 – $762,000

Note: The table above provides a snapshot of the main costs associated with starting the most common franchise format (as disclosed in the Item 7 of the Franchise Disclosure Document). For a complete overview of all the expenses involved with the various formats offered by the franchisor, please consult the Franchise Disclosure Document.

Initial Franchise Fee

The initial franchise fee is $49,500, payable upon signing the Franchise Agreement.

Royalty Fee

Franchisees must pay a weekly royalty fee of 6% of Gross Revenues.

Advertising Fee

Between 1% to 3% of Gross Revenues, used for national advertising as detailed in the National Advertising Program, payable weekly.

National Marketing Programs

A mandatory contribution of 2% of Gross Revenue to a fund used for national marketing efforts, including online advertising and e-commerce development.

Technology Fee

The technology fee is $150 per month.

Lease or Rent Fee

Lease or rent fees are dependent on the terms negotiated with the lessor and are typically determined prior to the opening of the franchise.

Transfer Fees

The transfer fee is $5,000, except in cases where the transfer is to a corporation of which the Franchisee is the majority stockholder, or a child, parent, sibling, or spouse of the Franchisee, in which case no fee is required.

How to open a Clean Eatz franchise

Opening a Clean Eatz franchise involves several steps, designed to ensure you are a good fit for the franchise. Here are the main steps to follow to open a Clean Eatz franchise.

1. Research the Franchise

• Start by thoroughly researching the Clean Eatz franchise. Understand their business model, culture, and what sets them apart in the health food industry.
• Visit their official website to gather initial information about their franchise offering, success stories, and read through any available testimonials and reviews.

2. Initial Contact and Application

• Reach out to Clean Eatz through their franchise inquiry form on their website to express your interest.
• Fill out the application provided by Clean Eatz to begin the qualification process, where you will likely need to disclose your financial status and background information.

3. Review Franchise Disclosure Document (FDD)

• Once your initial application is accepted, you will receive the Franchise Disclosure Document (FDD). Review this document carefully as it contains crucial details about the franchise agreement, obligations, and the financial performance of existing franchises.
• Consider consulting with a franchise attorney to help navigate the complexities of the FDD.

4. Secure Financing

• Evaluate your financial resources to determine if you meet the franchise’s financial requirements. The typical Clean Eatz franchise requires a minimum net worth and liquid capital.
• Explore financing options if necessary. Clean Eatz does not provide direct financing, but they may offer guidance on third-party lenders or you might consider small business loans.

5. Attend Discovery Day

• Participate in a Discovery Day at Clean Eatz’s headquarters in Wilmington, North Carolina. This event is an opportunity for you to meet the franchisor, ask questions, and get a feel for the day-to-day operations.
• Use this time to ensure that Clean Eatz’s franchise culture and operational style align with your business goals and expectations.

6. Site Selection and Approval

• Work with Clean Eatz to identify and secure a suitable location for your franchise. The location is crucial for the success of a food service business.
• Clean Eatz will assist in evaluating potential sites to ensure they meet specific criteria related to demographics, traffic patterns, and accessibility.

7. Sign Franchise Agreement

• Once a suitable location is found and all financial aspects are settled, you will sign the franchise agreement to officially become a Clean Eatz franchisee.
• Pay the initial franchise fee and any other required upfront fees as outlined in the FDD.

8. Training and Preparation

• Undergo comprehensive training, which typically occurs at the corporate headquarters. This training includes operational practices, food preparation, customer service, and local marketing strategies.
• Additional staff you plan to hire should also receive training either from you or directly through Clean Eatz’s training programs.

Disclaimer

Disclaimer: This content has been made for informational and educational purposes only. We do not make any representation or warranties with respect to the accuracy, applicability, fitness, or completeness of the information presented in the article. You should not construe any such information or other material as legal, tax, investment, financial, or other professional advice. Nothing contained in this article constitutes a solicitation, recommendation, endorsement, advertisement, or offer to buy or sell any franchises, securities, or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the franchise and/or securities laws of such jurisdiction.

All content in this article is information of a general nature and does not address the detailed circumstances of any particular individual or entity. Nothing in the article constitutes professional and/or financial and/or legal advice, nor does any information in the article constitute a comprehensive or complete statement of the matters discussed or the law relating thereto. You alone assume the sole responsibility of evaluating the merits and risks associated with the use of any information or other content in this article before making any decisions based on such information or other content.