Bar-B-Clean Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$78,200 - $136,620
Franchise Fee
$28,000
Total US Locations
78
Business Summary
Bar-B-Clean operates mobile businesses specializing in cleaning and servicing barbecues for both residential and commercial customers. These businesses utilize the Bar-B-Clean proprietary system and trademarks to provide on-site services within a designated geographic area.
Corporate History
Bar-B-Clean Franchising Inc. was formed in California on December 17, 2012, and began offering Bar-B-Clean franchises in March 2013. The company operates under its own name, Bar-B-Clean, and The Barbecue Cleaning Company. It does not conduct business in any other line or offer franchises in other business types. Bar-B-Clean Franchising Inc. itself has never operated a business of the type described in this document. Its affiliate, CNC Financial, which has officers with equity interests in Bar-B-Clean Franchising Inc., operated a Bar-B-Clean Business from 2011 to 2013 under the name The Barbeque Cleaning Company before changing to Bar-B-Clean. CNC Financial also owned a soccer training franchise since 2011.
Financial Overview
Investment Range
$78,200 - $136,620
Franchise Fee (Low)
$28,000
Franchise Fee (High)
$87,000
Royalty %
6%
Marketing %
2%
Equipment Costs (Low)
$15,750
Equipment Costs (High)
$23,000
Working Capital
$10,500
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Going concern qualification
Financial Health Notes
The franchisor's financial condition raises concerns about its ability to provide services and support to franchisees, as noted in the 'Special Risks' section of the Franchise Disclosure Document. The Virginia State Corporation Commission's Division of Securities and Retail Franchising highlights that the estimated initial investment for a franchisee, which ranges from $78,200 to $833,700, exceeds the franchisor's stockholders' equity, which was negative $(629,524) as of December 31, 2023. Additionally, regulatory bodies in Maryland and North Dakota have required the franchisor to defer the collection of initial franchise fees due to its financial condition, mandating that these fees are only paid after the franchisor fulfills its pre-opening obligations.
Financing Details
Bar-B-Clean Franchising Inc. does not offer any direct or indirect financing to franchisees. The franchisor also does not guarantee any franchisee notes, leases, or obligations.
Performance Metrics
Total US Locations
78
Franchised Units
77
Corporate Units
1
Franchising Since
2013
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
Yes
Litigation Summary
Bar-B-Clean Franchising Inc. has no litigation required to be disclosed in Item 3 of its Franchise Disclosure Document. This means Bar-B-Clean Franchising Inc. itself has not been involved in any material litigation in the past three years. However, a state addendum mentions that Bryan Weinstein, the Director, President, and Chief Financial Officer, and Gina Weinstein, the Secretary, filed for personal Chapter 7 bankruptcy in 2012, which was discharged in 2012. This information is considered for bankruptcy history rather than litigation.
Bankruptcy History
While Bar-B-Clean Franchising Inc. itself has no bankruptcy required to be disclosed in Item 4 of its Franchise Disclosure Document, the Minnesota state addendum notes that Bryan Weinstein, the Director, President, and Chief Financial Officer, and Gina Weinstein, the Secretary, filed a petition under Chapter 7 of the U.S. Bankruptcy Code in March 2012. They received a discharge in June 2012, and the case is now closed.
Agreement Terms
Initial Term
10 years
Renewal Term
5 years
Renewal Conditions
To renew their franchise agreement, Bar-B-Clean franchisees must be in good standing and meet specific requirements. They need to provide written notice of their desire to renew between 120 and 180 days before the current term expires. Franchisees must not be in default of their agreement or any other agreements with Bar-B-Clean Franchising Inc. or its affiliates. Upon renewal, they must sign Bar-B-Clean Franchising Inc.'s then-current franchise agreement and all related documents, which may include different terms and conditions, such as higher royalty or advertising contributions, and potentially a modified or reduced territory. Franchisees are also required to sign a general release of claims, complete any necessary refresher training, pay a renewal fee of $10,000, and, if required, remodel their vehicle and purchase new equipment to comply with current brand standards.
Training & Support Program
Franchisor Assistance
Before a Bar-B-Clean franchisee opens their business, Bar-B-Clean Franchising Inc. provides initial training at no cost for one person, typically the designated owner. They also loan a copy of their confidential Brand Standards Manual. Bar-B-Clean Franchising Inc. identifies necessary equipment and supplies, including providing a Franchise Equipment Package, and designates approved suppliers. They also provide consultation for grand opening marketing activities and define the franchisee's territory before the agreement is signed. During operation, Bar-B-Clean Franchising Inc. informs franchisees of mandatory operating specifications and procedures, offers advice on business operations based on reports or inspections, and provides guidance on advertising and marketing. Franchisees have continued access to confidential materials like the Brand Standards Manual and the brand's trademarks. They also receive continued access to the customer relationship management (CRM) software. Optionally, Bar-B-Clean Franchising Inc. may modify or update the System, conduct periodic visits to assist with operations (for which a fee and expenses may be charged if requested by the franchisee), maintain and administer a Brand Fund, and hold periodic national or regional conferences for franchisees. They may also establish minimum and maximum resale prices for marketing programs and special promotions.
Initial Training Hours
16
Training Location
Orange County, California
Ongoing Support
After opening, Bar-B-Clean Franchising Inc. provides several ongoing support services. They inform franchisees of mandatory specifications, standards, and procedures for business operations. Upon reasonable request, Bar-B-Clean Franchising Inc. offers advice on the business's operation, drawing from reports or inspections, delivered via written materials, electronic media, telephone, or other methods. Guidance on advertising and marketing is also provided. Additional training courses, including refresher training and training for newly hired personnel, may be offered or required, for which additional fees might apply. Franchisees are allowed to continue using confidential materials, including the Brand Standards Manual and trademarks, and receive continued access to the customer relationship management (CRM) software.
Franchise Requirements
Ideal Candidate Profile
Bar-B-Clean Franchising Inc. seeks franchisees who are actively and substantially involved in their business. The ideal candidate, or their designated owner, must operate the Bar-B-Clean Business on a full-time, hands-on basis, actively supervising its operations. The franchisor may, in some circumstances, allow a designated manager to run the day-to-day operations, but the emphasis is on significant owner participation for the success of the business. The franchisor considers factors such as business experience, skill, aptitude, attitude, and financial capacity when evaluating potential franchisees, in addition to their compliance with existing franchise agreements for multi-unit owners.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
hybrid
Owner Participation
full-time
Territory Type
exclusive
Territory Size Requirements
Bar-B-Clean Franchising Inc. grants an exclusive territory typically comprising up to 75,000 qualified households. Qualified households are defined as owner-occupied homes with an income of $60,000 or more. The territory size is determined using territory mapping technology, demographic data, and the latest census information, defined by zip codes, maps, or specific boundaries. Franchisees have the option to increase their territory size, usually up to a maximum of 100,000 total qualified households.
Staffing Notes
Bar-B-Clean franchisees are responsible for hiring, training, and supervising their own employees, ensuring they are honest, reliable, competent, and courteous. Franchisees must maintain a sufficient number of trained staff to meet operational standards and requirements at all times. Employees must comply with the Brand Standards Manual and other guidelines provided by Bar-B-Clean Franchising Inc. The franchisor emphasizes that employees are solely the franchisee's responsibility, and the franchisee has exclusive authority over employment-related decisions like hiring, discipline, wages, benefits, and work assignments. Franchisees must use their legal name on all employee documents and ensure employees sign an employment relationship acknowledgment form. Bar-B-Clean Franchising Inc. does not control day-to-day employee activities or their hiring/firing processes.