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Clean Eatz Franchise ProfileHealth & Beauty Franchises > Weight Loss Centers |
What Are the Initial Investment Requirements for a Clean Eatz Franchise?
To open a Clean Eatz franchise, you should be prepared for an initial investment ranging from $353,700 to $798,000. This includes a franchise fee of $49,500, which is part of the overall startup costs. Additionally, you will need to ensure you have a cash reserve of at least $353,700 and a net worth between $200,000 and $500,000. These financial requirements are crucial for setting up your business and covering initial operating expenses.
What Are the Ongoing Fees for a Clean Eatz Franchise?
As a Clean Eatz franchisee, you will be responsible for ongoing fees that include a royalty fee of 6% of your gross sales and a marketing fee of 1%. These fees contribute to the overall support and branding efforts provided by the Clean Eatz corporate team. It’s important to factor these costs into your financial planning to ensure the sustainability and growth of your franchise.
What Are the Revenue and Profit Potential of a Clean Eatz Franchise?
Clean Eatz franchises show promising revenue potential, with an average annual revenue of approximately $1,086,720 per unit. The median annual revenue is even higher at $1,618,803, indicating that many franchisees can achieve significant sales. With a gross profit margin of 61.3%, the financial outlook appears favorable, making it an attractive opportunity for aspiring entrepreneurs looking to enter the health-focused food service market.
What Is the Breakeven and Payback Period for a Clean Eatz Franchise?
Franchisees can expect to reach breakeven within approximately 12 months of opening their Clean Eatz location. The investment payback period is estimated at 22 months, allowing franchisees to recover their initial investment relatively quickly. This timeline is crucial for potential investors, as it provides insight into how soon they can start seeing a return on their investment.
Clean Eatz Franchise Financial Requirements
Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.
The minimum total assets (minus liabilities) you must possess.
Net Worth Required:
The estimated period to recoup your total investment.
Investment Payback:
The initial fee paid to join the franchise system.
Franchise Fee:
Ongoing percentage of revenue paid to the franchisor.
Royalty Fee:
Regular contribution toward the franchise’s advertising fund.
Marketing Fee:
The estimated timeframe to recover your initial costs.
Breakeven Time:
The total amount required to launch the franchise.
Initial Investment:
The minimum liquid capital you must have on hand.
Cash Required:
The typical yearly revenue generated per franchise location.
Average Revenue:
The middle value of yearly revenue among franchise locations.
Median Revenue:
The largest reported annual revenue among franchisees.
Highest Revenue:
The smallest reported annual revenue among franchisees.
Lowest Revenue:
A broad sector defining similar types of franchise businesses.
Industry:
A more specific division within the broader industry.
Category:
The key individuals guiding the franchise’s strategy and growth.
Leadership:
The official business address of the franchisor’s headquarters.
Corporate Address:
Available financing options to help start the franchise.
Funding Year:
The main organization that owns the franchise brand.
Parent Company:
Clean Eatz Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2021 | 2022 | 2023 |
|---|---|---|---|
| Total Units | 50 | 68 | 87 |
| Net Change YoY | +18 | +19 | |
| Franchised Units | 48 | 67 | 86 |
| Net Change YoY | +19 | +19 | |
| Corporate Units | 2 | 1 | 1 |
| Net Change YoY | -1 | 0 |
Initial Investment
The Clean Eatz franchise requires a total initial investment ranging from $353,700 to $798,000. This investment includes a franchise fee of $49,500, which grants aspiring franchisees access to the brand's established business model and support systems. Additional costs may include construction, equipment, inventory, and working capital.
Royalty and Marketing Fees
Franchisees are subject to a royalty fee of 6% of gross sales, alongside a marketing fee of 1%. These fees contribute to the overall brand strength and marketing efforts that help drive customer traffic to each location. This structure ensures that franchisees benefit from collective advertising and promotional strategies.
Financial Performance
Clean Eatz units boast an average annual revenue of approximately $1,086,720, with a median revenue of $1,618,803. The revenue range for individual units varies significantly, with the lowest reported annual revenue at $405,969 and the highest at $2,418,977. This financial performance underscores the potential profitability of the franchise.
Breakeven and Payback Period
Franchisees can expect to reach breakeven within 12 months of operation, making Clean Eatz an attractive option for those looking to recoup their investment quickly. The average investment payback period is estimated at 22 months, allowing franchisees to start seeing returns in a relatively short timeframe.
Growth and Expansion
Clean Eatz has experienced steady growth, increasing its franchised units from 48 in 2021 to 86 in 2023. This upward trend indicates a strong demand for the brand and its offerings, providing potential franchisees with a sense of security in their investment. The expansion reflects the brand's commitment to reaching new markets and serving more customers.
Operational Insights
Franchisees should be prepared for operating expenses that typically account for around 24.6% of revenue. Key expenses include payroll, technology costs, and advertising, which are critical for maintaining operations and ensuring customer satisfaction. Understanding these costs is essential for effective financial management within the franchise.
Frequently Asked Questions
The initial investment for a Clean Eatz franchise ranges from $353,700 to $798,000, which includes the franchise fee and other startup costs.