Fleet Clean Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$172,950 - $449,375
Franchise Fee
$10,000
Total US Locations
54
Business Summary
FW Fleet Clean, LLC offers franchises for mobile, on-site, commercial vehicle cleaning and related services business under the brand name Fleet Clean and other related marks. The business distinguishes itself through its specific business formats, operational procedures, proprietary vehicles equipped with wash boxes, accounting, collection, management, inventory control, and comprehensive training and advertising programs. Fleet Clean franchisees primarily provide commercial vehicle cleaning services directly at customer locations.
Corporate History
FW Fleet Clean, LLC was formed in Delaware on October 24, 2018, and began offering Fleet Clean franchises on January 1, 2019. The company acquired its marks and system from its predecessor, Fleet Clean Systems Incorporated, which had offered franchises under the same marks from July 2013 to November 1, 2018. Fleet Clean's parent company, Kept Companies, Inc. (formerly Fleetwash, Inc.), has been providing mobile truck washing services under the 'Kept Companies' and/or 'Fleetwash' marks since 1973, making it the largest on-site truck washing company in the United States.
Financial Overview
Investment Range
$172,950 - $449,375
Franchise Fee (Low)
$10,000
Franchise Fee (High)
$150,000
Minimum Net Worth
$1,000,000
Royalty %
8.5%
Marketing %
2.5%
Equipment Costs (Low)
$111,000
Equipment Costs (High)
$146,000
Working Capital
$37,500
Audited Financials
Yes
Offers Financing
Yes
Audit Opinion
Going concern qualification
Financial Health Notes
The auditor for FW Fleet Clean, LLC has indicated there is substantial doubt about the company's ability to continue as a going concern. This concern is based on factors such as operating losses and negative cash flows, suggesting potential financial difficulties for the Fleet Clean brand.
Financing Details
Fleet Clean offers financing through a Secured Promissory Note, covering up to 100% of the purchase price for the initial franchise fee, proprietary wash box and installation, chassis truck beds, other equipment, and assets acquired through the Account Transfer Program or Company-Owned Business Purchase Program. This financing carries a 10% annual interest rate, compounded monthly, with repayments made via weekly payments tied to a percentage of gross revenue or a fixed weekly amount. The term for this financing ranges from 48 to 120 months. Additionally, if purchasing a company-owned business, Fleet Clean provides a Revolving Credit Agreement for up to $50,000 in working capital, also at a 10% monthly compounded interest rate, with repayments in equal weekly installments over a 60-month term. All financing is secured by a security interest in all of the franchisee's assets, and all owners must personally guarantee the debt.
Performance Metrics
Total US Locations
54
Franchised Units
37
Corporate Units
17
Avg Square Footage
3,150
Franchising Since
2019
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
2
Litigation Summary
Fleet Clean currently has two pending litigation cases. The first case, filed in September 2023, is against Premier Wash, LLC, FW Fleet Clean, LLC, and an individual, where an employee of a Fleet Clean franchisee alleges violations of the Fair Labor Standards Act, claiming unpaid overtime and seeking class-action status. Fleet Clean denies liability, is prepared to defend its position, and a joint mediation is scheduled for June 2024. The second case, filed in February 2024, is a wrongful death lawsuit against Fleet Clean Systems, Inc., Fleet Clean Harrisburg, FW Fleet Clean LLC, and others, claiming wrongful death against an employee of a Fleet Clean franchisee. Fleet Clean has denied liability, and this case is in the pleadings phase.
Bankruptcy History
FW Fleet Clean, LLC has no bankruptcy history to report.
Agreement Terms
Initial Term
10 years
Renewal Term
5 years
Renewal Conditions
To renew, Fleet Clean franchisees must provide written notice between 6 and 12 months before their initial term ends. They must update or refurbish their Franchise Location (if applicable) and vehicles to meet current brand standards. Franchisees must also have strictly complied with their franchise agreement and all other agreements throughout the term, satisfied all monetary obligations on time, sign Fleet Clean's then-current franchise agreement (which may have materially different terms and higher fees), pay a renewal fee equal to the greater of 25% of their initial franchise fee or $10,000, execute a general release of claims against Fleet Clean, and ensure their personnel meet current qualification and certification requirements. Franchisees must also have met the Minimum Performance Criteria for average weekly Gross Revenue throughout their term.
Training & Support Program
Franchisor Assistance
Before opening, Fleet Clean provides site selection counseling and may perform on-site evaluations for franchisees with a physical location. It offers an initial certification program for up to two individuals (Operating Principal and Manager) at its headquarters. For a franchisee's first franchise, Fleet Clean provides at least five days of pre- and post-opening on-site assistance. Franchisees receive a copy of the operations manuals and a list of approved suppliers for fixtures, equipment, and opening inventory, which includes proprietary wash boxes and installation services purchased directly from Fleet Clean. Ongoing assistance includes making available additional or refresher certification programs. Fleet Clean reviews and approves all franchisee promotional materials and advertising and administers the Advertising Fund. It invoices customers weekly based on franchisee reports, processes payments (deducting fees), and remits the balance to the franchisee. Fleet Clean also offers periodic assistance in marketing, management, and operation, and may specify product and service pricing.
Initial Training Hours
93
Training Location
Currently at corporate headquarters in Henderson, Nevada for classroom training and in the franchisee's territory for on-the-job training.
Ongoing Support
After opening, Fleet Clean provides ongoing support to its franchisees through additional or refresher certification programs as deemed appropriate. It reviews and approves all promotional materials and advertising. The franchisor administers a System-wide Advertising Fund, manages customer invoicing and payment processing (deducting fees before remitting balances), and offers periodic assistance in marketing, management, and general operation. Fleet Clean also sets minimum, maximum, or specific prices for products and services and may conduct inspections of the franchise's operations, for which the franchisee is responsible for reimbursement of travel expenses.
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
Hands-On
Territory Type
Non-Exclusive
Territory Size Requirements
Fleet Clean territories are negotiated between the franchisee and the franchisor, with a minimum area equivalent to the size of one county. The territory's size is also implicitly linked to minimum performance criteria, requiring franchisees to achieve an average weekly Gross Revenue invoiced for services that meets or exceeds a specified dollar amount per 1,000 people residing in the territory, starting at $4 per 1,000 people in the first performance year and increasing to $8 per 1,000 people by the fifth year.
Staffing Notes
Fleet Clean requires franchisees to appoint an Operating Principal, who must be an individual owner holding at least a 20% equity interest, possessing authority over all business decisions, and the power to bind the franchisee. A Manager must also be appointed to oversee the day-to-day operations, dedicating full-time effort to the business. The Operating Principal can also serve as the Manager, unless Fleet Clean determines they lack sufficient experience. Any replacement Operating Principal or Manager must complete a prescribed certification program. Fleet Clean does not dictate employee wages, working conditions, or staffing levels, but it may specify uniforms and appearance standards. Franchisee personnel are considered the franchisee's employees, not Fleet Clean's.