In this exclusive Franchise Chatter FDD Talk post, you’ll learn the following:
Section I – Estimated initial investment (franchise costs) for a Fleet Clean franchise, based on Item 7 of the company’s 2023 FDD
Section II – Initial franchise fee, royalty fee, and marketing fee for a Fleet Clean franchise, based on Items 5 and 6 of the company’s 2023 FDD
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Section IV – News updates on the Fleet Clean franchise opportunity
Section V – Presentation and analysis of Fleet Clean’s financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2023 FDD, including information on the:
- 2022 average, median, highest, and lowest gross revenue for the 32 Fleet Clean franchisees that were open continuously and operated as a franchise during the fiscal year ended December 31, 2022 and the last quarter of 2021
- 2022 average gross revenue, franchise fees, personnel expenses, chemicals and supplies, fuel, insurance, miscellaneous expense, and net profits for the 18 Fleet Clean franchisees that were open continuously and operated as a franchise during the fiscal year ended December 31, 2022 and the last quarter of 2021, and provided Fleet Clean with complete financial information sufficient to prepare the expense statement
Section VI – Key ratios, comparables, computations, and analyses for the Fleet Clean franchise opportunity (exclusive content for Platinum subscribers)
Section I – Fleet Clean Franchise Costs
- Fleet Clean franchise costs (account transfer program/company-owned business purchase program not included), based on Item 7 of the company’s 2023 FDD:
- Initial Franchise Fee: $10,000 to $150,000
- Site Evaluation Fee: $0 to $2,500
- Lease: $1,600 to $20,000
- Signage: $0 to $1,000
- Utilities: $350 to $3,000
- Chassis: $35,000 to $60,000
- Fleet Clean Proprietary Wash Box and Installation: $60,000 to $68,000
- Chemicals, Parts, and Supplies: $2,500 to $8,000
- Insurance: $1,500 to $7,000
- Travel and Living Expenses (initial certification): $4,500 to $7,500
- Wages for the Operating Principal and Manager (during initial certification): $5,000 to $10,000
- Employee Salaries (3 months): $10,000 to $35,000
- iPhone 10/Computer Equipment: $2,000 to $4,000
- myFC Software: $1,875
- Permits, Licenses, and Fees: $500 to $2,500
- Professional Fees: $500 to $6,000
- Additional Funds (3 months): $25,000 to $50,000
- Account Transfer Program/Company-Owned Business Purchase Program: not applicable
- Total Estimated Fleet Clean Franchise Costs: $160,325 to $436,375
Section II – Fleet Clean’s Initial Franchise Fee, Royalty Fee, and Marketing Fee
- Fleet Clean’s initial franchise fee, royalty fee, and marketing fee, based on Items 5 and 6 of the company’s 2023 FDD:
- Initial Franchise Fee: $10,000 to $150,000
- Royalty Fee: 8.5% of your Gross Revenue
- Advertising Obligations: currently, 2.5% of your Gross Revenue
- Advertising and Promotional Materials: $250 to $2,500
Section III – Number of Franchised and Company-Owned Fleet Clean Outlets
Franchised
2020
"I've seen too many serious franchise buyers fall in love with a brand only to discover their territory is gone by the time they contact the franchisor. This tool was built to prevent exactly that." — Ambrosio, Franchise Chatter
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- Outlets at the End of the Year: 36
- Net Change: +5
2021
- Outlets at the Start of the Year: 36
- Outlets at the End of the Year: 40
- Net Change: +4
2022
- Outlets at the Start of the Year: 40
- Outlets at the End of the Year: 42
- Net Change: +2
Company-Owned
2020
- Outlets at the Start of the Year: 6
- Outlets at the End of the Year: 4
- Net Change: -2
2021
- Outlets at the Start of the Year: 4
- Outlets at the End of the Year: 9
- Net Change: +5
"Multi-unit ownership is where the real wealth in franchising is built. It starts with one key decision: choosing a brand with enough territory runway to grow into." — Ambrosio, Franchise Chatter
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- Outlets at the End of the Year: 8
- Net Change: -1
Section IV – News Updates on the Fleet Clean Franchise
Section V – Financial Performance Representations (Average Revenues and/or Profits) for the Fleet Clean Franchise (Item 19, 2023 FDD)
Part 1 – FY 2022 Annual Gross Revenue for All Included Franchisees
- The following tables show the historical information for the 32 Franchisees (each an “Included Franchisee”) that were open continuously and operated as a Franchise during the fiscal year ended December 31, 2022 (“FY 2022”) and the last quarter of 2021.
- Of the 48 Franchises that were open at any time during FY 2022, Fleet Clean did not include data in this Item 19 for the following:
- Two Franchises that opened in the last quarter of 2021.
- Four Franchises reacquired by Fleet Clean and operated as company-owned units during 2022 (not including one of which was later resold during 2022 to another Franchisee).
- Eight Franchises that commenced operations in 2022 (including the one that was previously acquired by Fleet Clean during 2022 and then resold to a new Franchisee, and another that was acquired from Fleet Clean during 2022).
- Two Franchises that ceased operating in 2022.
- Average Gross Revenue: $430,457.87
- Median Gross Revenue: $307,995.92
- High Gross Revenue: $1,542,383.00
- Low Gross Revenue: $31,105.94
- Franchisees Meeting/Exceeding Average Gross Revenue: 10/32 (31.25%)
Part 2 – FY 2022 Expenses for Included Franchisees Who Provided Fleet Clean with Expense Data
- The following table is a summary statement for the 18 Included Franchisees that provided Fleet Clean with complete financial information. 14 of the 32 Included Franchisees did not submit financial information or provide Fleet Clean with complete financial information sufficient to prepare this expense statement.
- Number of Included Franchisees Who Provided Fleet Clean With Expense Data: 18
- Average Gross Revenue: $563,830.54 (100.0%)
- Average Franchise Fees: $68,973.44 (12.2%)
- Average Personnel Expenses: $227,323.69 (40.3%)
- Average Chemicals and Supplies: $20,442.43 (3.6%)
- Average Fuel: $46,023.68 (8.2%)
- Average Insurance: $28,283.83 (5.0%)
- Average Miscellaneous Expense: $94,122.29 (16.7%)
- Average Net Profits: $78,661.05 (14.0%)
- “Gross Revenue” means amounts derived from all products or services sold from or through the Franchise, including any sale of products or services made for cash or credit, or partly for cash and partly for credit, less refunds.
- For certain Franchises, due to a single franchisee owning multiple Franchises, Gross Revenue and the expenses listed above for each individual Franchise owned by the franchisee were not reported separately. Therefore, in those instances, Fleet Clean calculated Gross Revenue and expenses for the purpose of determining the information in Parts 1 and 2 by dividing the respective amounts for that franchisee by the number of Franchises owned by the franchisee.
- For example, if a franchisee owns three Franchises, the total Gross Revenue and total expenses in each category reported by that franchisee was divided by three for purposes of calculating the average, high, low, and median amounts, as indicated, for each of those three Franchises in these tables.
- “Franchise Fees” includes continuing fees paid under the Franchise Agreement, including Royalty Fees, Advertising Fund Contributions, and National Account Support Fees.
- “Personnel Expenses” includes wages paid to management and employees of a Franchise, including bonuses, payroll expenses, health insurance, workers’ compensation, vacation, other employee benefits, and associated payroll taxes paid to employees.
- “Chemicals and Supplies” includes chemicals and replacement parts for Fleet Clean Vehicles.
- “Insurance” includes coverage general liability, business automobile liability insurance, worker’s compensation, commercial general liability insurance, property insurance.
- “Miscellaneous Expense” includes miscellaneous expenses like Fleet Clean vehicle tags and taxes; if the franchisee has a physical location, rent, common area maintenance, real estate taxes; other miscellaneous expenses associated with occupancy; expenses associated with the storage of Fleet Clean Vehicles; repairs and maintenance; utilities; water; office supplies; accounting and other professional fees; meals and entertainment; business licenses and fees; and bank service charges.
- “Net Profits” for a particular Franchise is the Gross Revenue minus the Franchise Fees, Personnel Expenses, Chemicals and Supplies, Fuel, Insurance, and Miscellaneous Expenses for that Franchise. Each Franchise may incur additional expenses, including interest, taxes, depreciation, and amortization.
- Characteristics of the Included Franchises that may differ materially from your Franchise: (a) you may have additional expenses and your expenses could be higher in the future depending on inflation and other factors; (b) you may pay your principals and management team more; (c) your area may have greater competition and may be smaller; (d) you may have less business and management experience; (e) you may have greater debt service obligations; (f) the Included Franchises have been operating longer than your Franchise; and (g) your local market conditions may be different and labor costs may be higher.
- Some outlets have earned this amount. Your individual results may differ. There is no assurance you’ll earn as much.
- Fleet Clean has assumed the information provided by its Franchises is accurate; Fleet Clean prepared the information in the table from information provided by its franchisees.
Section VI – Fleet Clean Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️
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