Cleanest Restaurant Group Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$102,686 - $374,174
Franchise Fee
$48,333
Total US Locations
11
Business Summary
Cleanest Restaurant Group offers professional restaurant cleaning services, including overnight cleaning, and other related services and products. These services are provided on-site at customer locations within the designated operating territory.
Corporate History
Cleanest Restaurant Group Franchise Inc. was established in New York on January 26, 2022, and began offering franchises on March 25, 2022. The franchisor conducts business under its corporate name, Cleanest Restaurant Group Franchise Inc. and Cleanest Restaurant Group. It operates the Cleanest Restaurant Group franchise system by granting franchises. An affiliate, Cleanest Restaurant Group, Inc., was established in April 2017 and operates a similar business using the same brand marks. Another affiliate, Cleanest Restaurant Group IP, Inc., was established in January 2022 and owns the Licensed Marks.
Financial Overview
Investment Range
$102,686 - $374,174
Franchise Fee (Low)
$48,333
Franchise Fee (High)
$60,000
Royalty %
8%
Marketing %
1%
Equipment Costs (Low)
$2,500
Equipment Costs (High)
$5,850
Working Capital
$22,407
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
The franchisor's financial condition, as noted in the Special Risks section of its Franchise Disclosure Document, calls into question Cleanest Restaurant Group's financial ability to provide services and support to franchisees. The auditor's report on Cleanest Restaurant Group's financial statements for 2022, 2023, and 2024 does not include a going concern qualification and states that the financial statements present fairly in all material respects.
Financing Details
Cleanest Restaurant Group does not offer any direct or indirect financing to its franchisees. The franchisor also does not guarantee any franchisee's notes, leases, or other obligations.
Performance Metrics
Total US Locations
11
Franchised Units
10
Corporate Units
1
Franchising Since
2022
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Cleanest Restaurant Group has no litigation to report in this section of its FDD.
Bankruptcy History
Cleanest Restaurant Group has no bankruptcy history to report in this section of its FDD.
Agreement Terms
Initial Term
5 years
Renewal Term
5 years
Renewal Conditions
To renew their franchise, Cleanest Restaurant Group franchisees must be in compliance with their Franchise Agreement, provide 180 days prior written notice of their intent to renew, and sign the then-current form of Franchise Agreement and related agreements for the renewal term. Franchisees must also sign a general release in favor of Cleanest Restaurant Group, pay a renewal fee, and meet all other renewal requirements outlined in the Franchise Agreement. Owners and their spouses must also comply with their agreements and personally guarantee the terms of the new renewal Franchise Agreement, which may have materially different terms.
Training & Support Program
Franchisor Assistance
Cleanest Restaurant Group provides pre-opening assistance including granting the franchise, reviewing and approving the operating territory, providing access to confidential manuals, listing approved suppliers and distributors, and approving signs, equipment, furniture, and fixtures. The franchisor also identifies and locates the franchisee's business on its website and provides initial training to the franchisee or managing owner and one manager. Post-opening, Cleanest Restaurant Group communicates operating standards, provides marketing standards and approval, lists approved vendors, and may coordinate an annual conference. They also offer supplemental training, initial training for replacement operating managers, administer marketing funds, and may suggest pricing levels. They will also provide two to three days of in-market support after the pre-opening process concludes.
Initial Training Hours
45
Training Location
New York, New York
Ongoing Support
After opening, Cleanest Restaurant Group provides ongoing support through communication of operating standards, marketing standards, and approved vendors. The franchisor may also coordinate an annual system conference that franchisees are required to attend. Supplemental training is available upon request or if performance standards are not met, with a fee. Initial training is also available for replacement operating managers. The franchisor administers marketing funds, suggests pricing levels, and requires franchisees to participate in designated customer review tracking and reputation management services. Cleanest Restaurant Group provides two to three days of in-market support following the pre-opening process, and franchisees are also required to upgrade computer systems and software.
Franchise Requirements
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Hybrid
Owner Participation
Full-Time
Territory Type
Non-Exclusive
Territory Size Requirements
Cleanest Restaurant Group territories are defined as a geographic area with an approximate population of 300,000 people. Additional territories can be purchased, each also encompassing around 300,000 people, with population calculated based on raw data without demographic or age considerations.
Staffing Notes
Cleanest Restaurant Group franchisees are solely responsible for hiring, training, and managing their employees. They must ensure all employees wear approved uniforms and maintain proper System Supplies. An approved Managing Owner must be personally responsible for daily management and work full-time in the business, or an approved Operating Manager must fill this role. All employees who access confidential information must sign a confidentiality agreement.