Fleet Clean Franchise Costs: Estimated Initial Investment (Item 7, 2022 FDD)
- Amounts that you pay to Fleet Clean are not refundable unless otherwise noted. Amounts paid to a third party may or may not be refundable, depending on the terms offered by the third party.
- Fleet Clean may, at its option, finance a portion of your initial investment at an annual rate of interest between 5% and 10%.
1. Initial Franchise Fee: $30,000 to $150,000
- The amount calculated is the total amount, except for any applicable sales tax, which is payable by you (sales tax is computed in accordance with national, state, and local law as required).
- A portion of the Initial Franchise Fee is refundable as described in Item 5.
- If you sign a Development Agreement, you must pay Fleet Clean a non-refundable development fee equal to 50% of the Initial Franchise Fee required for each additional Franchise (after the first Franchise) scheduled to be established under the Development Agreement.
2. Site Evaluation Fee: $0 to $1,500
- Only applies if you will have a Franchise Location and Fleet Clean determines it is necessary to perform an on-site site evaluation for your Franchise Location. Fleet Clean may charge an evaluation fee of $1,500 plus its costs and expenses, which you must pay it prior to its performance of the on-site evaluation.
3. Lease: $1,600 to $20,000
- Under the Franchise Agreement, Fleet Clean may require that you have a Franchise Location prior to or after opening your Franchise. Fleet Clean will make its determination depending upon factors such as the size and demographics of your Territory, the success of your Franchise in your Territory, the number and needs of your customers and changes in the brand, and the brand’s marketing and service/product offerings.
- In addition, a physical location may also be necessary due to federal, state and local licensing laws, codes and regulations.
- If you obtain a Franchise Location, if you do not already own property that is suitable for the operation of the Franchise, you may have to purchase or lease land and a building for the Franchise. The rental cost of commercial property varies considerably depending upon numerous factors, including the location and condition of the property, size, as well as economic factors affecting the local market for commercial property.
- Fleet Clean estimates that a typical size for a Franchise Location will range from 300 to 6,000 square feet, and that monthly rent for leased space will range from $400 to $4,000 per month. Security deposits should range from one to two months’ rent. In Fleet Clean’s experience, the rental market may allow for some rent-free period.
- The costs to purchase land and construct your site will vary considerably from location to location, and, therefore, Fleet Clean cannot estimate these costs.
4. Signage: $0 to $1,000
- You are required to obtain approved decals, graphics and other decoration for the Fleet Clean Vehicle(s) and Manager’s vehicles.
5. Utilities: $350 to $3,000
- You will be required to pay deposits before the installation or start of service of telephone, gas, electric, and other utilities. These amounts will vary depending upon your credit and your suppliers. These amounts may be less if you will not have a Franchise Location.
6. Chassis: $35,000 to $60,000
7. Fleet Clean Proprietary Wash Box and Installation: $45,000 to $55,000
- These two estimates together include one fully-equipped Fleet Clean Vehicle, which consists of the Fleet Clean proprietary wash box to be installed by Fleet Clean on an approved chassis truck bed.
- The chassis truck bed may be purchased from any supplier if it meets Fleet Clean’s specifications. Fleet Clean may also offer you chassis truck beds for purchase, although Fleet Clean is not obligated to do so.
- In general, a Franchise will initially require one Fleet Clean Vehicle. However, you must ensure that you have an adequate number of Fleet Clean Vehicles sufficient to meet customer demand in your Territory.
- These amounts are uniformly charged and are not refundable.
8. Assigned Accounts: $0 to $300,000
- You may be required to purchase and assume obligations under Assigned Accounts if there are company-owned accounts in your Territory when you purchase your Franchise. Fleet Clean will charge a fee in connection with your purchase of such Assigned Accounts as further described in Item 5.
9. Chemicals, Parts, and Supplies: $2,000 to $7,000
- The estimate represents a three-month supply of chemicals, parts, and supplies.
10. Insurance: $1,500 to $7,000
- You must obtain insurance coverage with the required limits as described in the Franchise Agreement.
- The estimate represents the approximate quarterly premium for insurance for the first quarter. Your costs will vary based on risks associated with your business and your location. The cost of Worker’s Compensation insurance will vary based upon an assigned percentage of your total payroll dollars.
11. Travel and Living Expenses (Initial Certification): $4,500 to $7,500
- This estimate includes transportation, meals and lodging incurred by your Operating Principal and the Manager (two people total) during the initial certification program. The amount spent will depend on the distance these individuals must travel and the type of accommodations you choose. In addition, you are responsible for compensating any of your owners or employees who attend the training program.
12. Wages for the Operating Principal and Manager (During Initial Certification): $5,000 to $10,000
13. Employee Salaries (3 months): $10,000 to $35,000
14. iPhone 8/Computer Equipment: $1,000 to $3,000
- This includes the cost of one computer and one iPhone 8. You may also use a more recent version of the iPhone.
15. myFC Software: $1,875
- This estimate includes the annual fee and three months of support and access for the myFC software.
- You are required to enter into a Software License Agreement with Fleet Clean when you sign the Franchise Agreement. Under the Software License Agreement, you will pay an annual fee of $1,500 per Franchise and a monthly support and access fee of $125 per month per device (subject to adjustment).
- These fees do not include the cost of the device, which is currently an iPhone 8 (or a more recent version), or the service charges of the telecommunications provider.
16. Permits, Licenses, and Fees: $500 to $2,500
- Local, municipal, county, and state regulations vary depending on what licenses and permits are required by you to operate a Franchise. For example, you may need city and county business and occupational licenses. You may be required to have a license in connection with wash water disposal, and if so, Fleet Clean may require evidence that you have such license prior to opening. Such fees are paid to governmental authorities, as incurred, before beginning business.
17. Professional Fees: $500 to $6,000
- Estimated professional fees include fees for legal, accounting, architectural, engineering, time and project management consulting, and other professional and consulting services you will need to assist you in matters relating to the development and operation of your Franchise.
18. Additional Funds (3 months): $25,000 to $50,000
- New businesses often generate a negative cash flow. The estimated amounts in the chart are the minimum recommended levels to cover additional operating expenses for three months. However, this amount might not be sufficient. Additional working capital may be required if sales are low and/or fixed costs are high.
19. Total: $163,825 to $720,375
- The amount given above represents Fleet Clean’s best estimate of your total investment for one Franchise.