In this FDD Talk post, you’ll learn the following:
- Section I – Background information on the Fleet Clean franchise opportunity, including relevant news updates
- Section II – Estimated initial investment for a Fleet Clean franchise, based on Item 7 of the company’s 2021 FDD
- Section III – Initial franchise fee, royalty fee, marketing fee, and other fees for a Fleet Clean franchise, based on Items 5 and 6 of the company’s 2021 FDD
- Section IV – Number of franchised and company-owned Fleet Clean outlets at the start of the year and the end of the year for 2018, 2019, and 2020, based on Item 20 of the company’s 2021 FDD
- Section V – Presentation and analysis of Fleet Clean’s financial performance representations, based on Item 19 of the company’s 2021 FDD, including information on the:
- 2020 average, median, highest, and lowest gross revenue for the 6 larger Fleet Clean units (i.e., outlets located within territories with a population of 3,500,000 to 10,000,000) operated by franchisees that were open and operating at any time from January 1, 2020 to December 31, 2020
- 2020 average, median, highest, and lowest gross revenue for the 25 medium Fleet Clean units (i.e., outlets within territories with a population of 500,000 to 3,499,999) operated by franchisees that were open and operating at any time from January 1, 2020 to December 31, 2020
- 2020 average, median, highest, and lowest gross revenue for the 5 smaller Fleet Clean units (i.e., outlets within territories with a population of 10,000 to 499,000) operated by franchisees that were open and operating at any time from January 1, 2020 to December 31, 2020
Section I – Background Information
17 Things You Need to Know About the Fleet Clean Franchise
Continues Aggressive Expansion with New Openings
1. In late November 2020, Fleet Clean announced that it has opened in Washington, D.C. and Philadelphia. Andy Trinh and his father, Dr. Khiet Trinh, will open branches in Washington, D.C. and Northern Virginia. Andy is a recent graduate of the University of Virginia and will be the operations manager.
2. Andy Trinh said, “Being relatively young, I soon sought out a business to own and looked at different franchises. I was immediately impressed with the Fleet Clean franchise organization, the concept, the business model, and the support I would receive.”
3. Brian and Chris Beers will own the Philadelphia franchise. They have also agreed to open in Pittsburgh and Cleveland, Ohio. Brian and his brother Chris own multiple Midas shops in the Philadelphia area.
4. Brian Beers said the fact that a Fleet Clean business is not capital intensive was a major decision to own. “I liked that you could start small and grow the business to as large as you wanted on your own terms. I also liked that this business can be scaled up without being held back by real estate.”
5. Operating with rigs dedicated to green technology and keeping the environment healthy, Fleet Clean provides multiple levels of fleet and pressure washing, including hand-brush washing of vehicle exteriors, trailer washouts, interior detailing, engine cleaning and degreasing, concrete cleaning, and commercial building washing as well as disinfecting equipment and buildings. The business is an essential business that does not work with the public but is business-to-business.
6. Each Fleet Clean rig is equipped with its own water, generator, custom-built pressure washers, soap dispensers, brushes, tools, and water reclamation equipment, with businesses only needing to supply the dirty vehicles. Fleet Clean’s systems are designed to be detailed, efficient, effective, and friendly while placing a strong emphasis on protecting the environment with green processes.
7. Fleet Clean is committed to providing the best service possible through centralized accounting and a robust customer support system so that customers get immediate satisfaction no matter what. The company employs technology to simplify processes while ensuring they are protecting the environment by reducing use of paper, reclaiming water, and using environmentally-safe products.
8. Dale Waite, director of franchise development for Fleet Clean, said, “Our goal at Fleet Clean is to ensure that every franchisee succeeds and has access to the tools that will allow them to do so.”
Opens First Location in Wisconsin
9. In mid-March 2021, Fleet Clean opened a new location in Madison, Wisconsin. On March 17, 2021, the new Fleet Clean USA franchise, owned and operated by Patrick Doll, began its mobile truck washing service in the Madison area.
10. Equipped with water, pressure washers, brushes, water reclamation equipment, and everything needed to safely and effectively wash fleets of vehicles, Patrick’s Fleet Clean crew will arrive at customers’ yards to pressure wash and hand-brush wash their trucks.
11. Patrick Doll is a veteran of the Marine Corp and an area native. He was born in McFarland and has lived in the Madison Wisconsin area his entire life apart from while serving in the Marines.
12. Doll said, “My wife and I are opening up the first Fleet Clean USA in Wisconsin because we saw a need for a mobile fleet cleaning business in the Dane County area. One of the things that attracted me to Fleet Clean as a business is the corporation’s concern for the environment. We reclaim the water we use and put that water through a five-step filtration process before returning through the sewer system. It is a big win for our environment to not be putting dirt and chemicals into storm drains.”
13. Vincent DiCarlo, director of franchise operations for Fleet Clean, said, “Patrick’s background and expertise makes him the perfect Fleet Clean franchise operator. In addition to skills gained as a former Marine, he can apply the business concepts he practiced during his career in manufacturing and retail management.”
14. Fleet Clean was founded in 2009 by Scott Marr in Atlanta, Georgia, with the goal of changing the fleet washing industry. Marr began cleaning/washing vehicles when he was 13 years old as a way to make some money. When he was 15, he convinced his parents to buy him a pressure washer so he could wash houses and buildings.
15. Marr decided to go into banking and spent years in the finance world. As a side hustle, Marr continued to pressure wash trucks and realized that he was making more money on the weekends than he was at his bank job. Marr decided to quit his banking job to focus on his fleet washing business.
16. The first Fleet Clean was a success and Marr opened five more locations as demand grew. Marr wanted to push this growth further and decided to start franchising Fleet Clean in late 2013. Today, there are Fleet Clean locations across 25 states.
Entrepreneur’s Franchise 500
17. Fleet Clean did not rank on Entrepreneur’s 2021 Franchise 500 list.
Section II – Estimated Costs
- Please click here for detailed estimates of Fleet Clean franchise costs, based on Item 7 of the company’s 2021 FDD.
Section III – Initial Franchise Fee, Royalty Fee, Marketing Fee, and Other Fees
- Please click here for detailed information on Fleet Clean’s initial franchise fee, royalty fee, marketing fee, and other fees, based on Items 5 and 6 of the company’s 2021 FDD.
Section IV – Number of Franchised and Company-Owned Outlets
- Outlets at the Start of the Year: 25
- Outlets at the End of the Year: 21
- Net Change: -4
- Outlets at the Start of the Year: 21
- Outlets at the End of the Year: 31
- Net Change: +10
- Outlets at the Start of the Year: 31
- Outlets at the End of the Year: 36
- Net Change: +5
- Outlets at the Start of the Year: 6
- Outlets at the End of the Year: 12
- Net Change: +6
- Outlets at the Start of the Year: 12
- Outlets at the End of the Year: 7
- Net Change: -5
- Outlets at the Start of the Year: 7
- Outlets at the End of the Year: 4
- Net Change: -3
Section V – Financial Performance Representations (Item 19, 2021 FDD) and Analysis
- The following tables show the historical reported average, median, high, and low annual FY 2020 Gross Revenue for the franchised outlets that were open and operating at any time from January 1, 2020 to December 31, 2020.
- If an outlet was owned by a franchisee at December 31, 2020, it was counted as a franchised outlet despite it may have formerly been a company-owned outlet.
- 36 franchised outlets met this criteria and are included in this financial performance representation; 2 franchised outlets were not in operation and, therefore, did not meet the criteria and are not included.
- This Item 19 includes information for the following categories:
- outlets located within territories with a population of 3,500,000 to 10,000,000 are “Larger Units”;
- outlets within territories with a population of 500,000 to 3,499,999 are “Medium Units”; and
- outlets within territories with a population of 10,000 to 499,000 are “Smaller Units”.
- Fleet Clean prepared the information below from its information and from information provided by its franchisees. These reported results are not audited, and Fleet Clean has not independently verified data provided by its franchisees, although it believes the data to be accurate.
- “Gross Revenue” as used in this Item 19 includes all revenue but excludes (i) sales taxes or similar taxes that, by law, are chargeable to customers and payable to a taxing authority; and (ii) refunds, chargebacks, credits, and allowances given to customers.
- Characteristics of these businesses may differ substantially from your business depending on your previous business and management experience, how much you pay your principals and your management team, competition in your area, the size of your market, your debt service obligations, the length of time that the included businesses have operated compared to your business, and the services sold at your business compared to the included businesses.
- The sales and expenses of an individual franchisee may vary greatly depending on these and a wide variety of other factors, including the location, population and demographics in your market area, economic and market conditions, labor and product costs, etc.
Part 1 – 2020 Unit Gross Revenue for Larger Units Operated by Franchisees
- Number of Units: 6
- Average Gross Revenue: $663,916
- Number and Percent of Sample That Achieved or Surpassed Average: 2 / 33.34%
- Median Gross Revenue: $409,535
- Highest Gross Revenue: $1,761,305
- Lowest Gross Revenue: $4,000
Part 2 – 2020 Unit Gross Revenue for Medium Units Operated by Franchisees
- Number of Units: 25
- Average Gross Revenue: $224,962
- Number and Percent of Sample That Achieved or Surpassed Average: 10 / 40.00%
- Median Gross Revenue: $175,844
- Highest Gross Revenue: $1,178,577
- Lowest Gross Revenue: $24,635
Part 3 – 2020 Unit Gross Revenue for Smaller Units Operated by Franchisees
- Number of Units: 5
- Average Gross Revenue: $93,378
- Number and Percent of Sample That Achieved or Surpassed Average: 2 / 40.00%
- Median Gross Revenue: $64,478
- Highest Gross Revenue: $183,892
- Lowest Gross Revenue: $31,289
- Some outlets have earned this amount. Your individual results may differ. There is no assurance you’ll earn as much.
- As stated above, the information provided herein is based on historic revenue. The information presented is not a forecast of future potential performance.