Risk Score
Pending analysis
Investment Range
$353,700 - $798,000
Franchise Fee
$25,000
Total US Locations
98
Business Summary
Clean Eatz Franchising LLC offers franchises to operate a quick-serve restaurant that features healthy meal plans, entrees, side items, snacks, and drinks. Clean Eatz provides weekly meal plans and individual meals for both in-café dining and take-home consumption. The business operates under the "Clean Eatz" trademarks and a unique system designed to support franchisees in their ongoing business efforts.
Corporate History
Clean Eatz Franchising LLC was formed as a North Carolina limited liability company on May 12, 2015, and began offering Clean Eatz franchises on the same date. The company operates exclusively under the Clean Eatz Franchising LLC and Clean Eatz names, with its sole business being offering franchises and supporting franchisees. The franchise concept is based on Clean Eatz, LLC, which was operated by the founders, Don and Evonne Varady, in Wilmington, NC, starting in December 2012. The parent company is V & V Holdings, LLC, also owned by the founders. Clean Eatz Franchising LLC has two affiliates: CE Kitchen, Inc., formed in November 2019, which is an approved supplier of prepackaged snack items and Clean Eatz branded paper products, and Redz Kitchen, LLC, formed in November 2022, which exclusively supplies certain proteins like chicken and beef.
Financial Overview
Investment Range
$353,700 - $798,000
Franchise Fee (Low)
$25,000
Franchise Fee (High)
$49,500
Royalty %
6%
Marketing %
2%
Equipment Costs (Low)
$49,000
Equipment Costs (High)
$144,000
Working Capital
$30,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Clean Eatz Franchising LLC demonstrates strong financial health. The company's cash and cash equivalents, as well as total current assets, increased significantly from 2022 to 2023. Current assets are substantially higher than current liabilities, indicating good liquidity. Clean Eatz Franchising LLC has consistently generated positive net income and cash flow from its operating activities. The company's members' equity has also seen a considerable increase. The independent auditor has issued an unqualified opinion on the financial statements, confirming their fair presentation in accordance with accounting principles.
Financing Details
Clean Eatz Franchising LLC does not offer any direct or indirect financing to its franchisees. Additionally, the franchisor does not guarantee any notes, leases, or other financial obligations that franchisees may incur. Franchisees are responsible for arranging their own funding through external sources.
Performance Metrics
Total US Locations
98
Franchised Units
97
Corporate Units
1
Avg Square Footage
2,250
Franchising Since
2015
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Clean Eatz Franchising LLC has no litigation to report in this section, as no litigation is required to be disclosed in Item 3 of its Franchise Disclosure Document.
Bankruptcy History
Clean Eatz Franchising LLC has no bankruptcy history to report in this section, as no bankruptcy is required to be disclosed in Item 4 of its Franchise Disclosure Document.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew, Clean Eatz franchisees must sign a new franchise agreement, ensure all payments are current, and pay a renewal fee. The new agreement may contain materially different terms and conditions compared to the original contract, but the territory boundaries will remain unchanged, and the continuing royalty rate will not exceed what is imposed on other similarly situated renewing franchisees.
Training & Support Program
Franchisor Assistance
Clean Eatz provides initial assistance to franchisees by approving the chosen location, offering advice on site selection and lease negotiation, and assisting with sourcing equipment, signs, fixtures, initial inventory, and supplies from approved vendors. New franchisees, along with one designated manager, must attend a mandatory initial training program. During operation, Clean Eatz provides ongoing advisory services via telephone and electronic communication, includes the franchise's information on its website, and may implement a centralized purchasing system. The franchisor also researches and shares information on new equipment, supplies, services, and business methods. Franchisees are required to attend mandatory annual conferences to discuss industry changes, operational techniques, training, bookkeeping, accounting, and advertising programs.
Initial Training Hours
113
Training Location
Corporate headquarters in Wilmington, North Carolina, or another designated franchise.
Ongoing Support
Clean Eatz provides reasonable ongoing advisory services through telephone and electronic communication during normal business hours. The franchisor may also conduct visits by field representatives, though additional on-site assistance may incur a fee. Franchisees receive updates on new equipment, supplies, services, and business methods through ongoing research. Clean Eatz includes information about each franchise on its website and may offer an internet-based support network. Franchisees are also required to attend mandatory annual conferences to discuss industry developments, operational techniques, personnel training, and advertising programs.
Franchise Requirements
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
supervisory
Territory Type
protected
Territory Size Requirements
Clean Eatz Protected Territories are determined on a case-by-case basis, generally based on either a five-mile radius from the Café or a population density of 100,000 people, whichever is greater. The specific boundaries are negotiated with Clean Eatz.