In this exclusive Franchise Chatter FDD Talk post, you’ll learn the following:

Section I – Estimated initial investment (franchise costs) for a Bar-B-Clean franchise, based on Item 7 of the company’s 2024 FDD

Section II – Initial franchise fee, royalty fee, and marketing fee for a Bar-B-Clean franchise, based on Items 5 and 6 of the company’s 2024 FDD

Section III – Number of franchised and company-owned Bar-B-Clean outlets at the start of the year and the end of the year for 2021, 2022, and 2023, based on Item 20 of the company’s 2024 FDD

Section IV – News updates on the Bar-B-Clean franchise opportunity

Section V – Presentation and analysis of Bar-B-Clean’s financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2024 FDD, including information on the:

• 2023 average, median, highest, and lowest gross sales for the 3 full-time Bar-B-Clean franchised locations (excluding Texas franchised location), 4 full-time Bar-B-Clean franchised locations and 1 Bar-B-Clean affiliate location, 2 part-time Bar-B-Clean franchised locations in the Reporting Group

• 2023 annual gross sales for the 4 full-time and 2 part-time Bar-B-Clean franchised locations in the Reporting Group

• 2023 total gross revenue, cost of goods sold, gross profit, operating expenses, imputed franchise fees, and adjusted earnings for the Bar-B-Clean affiliate location in the Reporting Group

• 2023 average, median, highest, and lowest revenue per job and total jobs for the 3 full-time Bar-B-Clean franchised locations (excluding Texas franchised location), 4 full-time Bar-B-Clean franchised locations and 1 Bar-B-Clean affiliate location, 2 part-time Bar-B-Clean franchised locations in the Reporting Group

• 2023 total jobs and revenue per job for the Bar-B-Clean affiliate location in the Reporting Group

Section VI – Key ratios, comparables, computations, and analyses for the Bar-B-Clean franchise opportunity (exclusive content for Platinum subscribers)

Section I – Bar-B-Clean Franchise Costs

• Bar-B-Clean franchise costs, based on Item 7 of the company’s 2024 FDD:

• Initial Franchise Fee:  $49,500
• Real Estate and Improvements:  $0 to $2,000
• Franchise Equipment Package:  $5,000
• Computer Equipment:  $0 to $1,000
• Grand Opening Advertising:  $3,000 to $5,000
• Insurance:  $300 to $1,000
• Professional Fees:  $650 to $1,500
• Business Licenses and Permits:  $0 to $300
• Training:  $1,000 to $2,500
• Signage:  $750 to $2,000
• Vehicle:  $10,000 to $15,000
• Miscellaneous Opening Costs:  $0 to $1,320
• Additional Funds – 3 Months:  $8,000 to $13,000
• Total Estimated Bar-B-Clean Franchise Costs:  $78,200 to $99,120

Section II – Bar-B-Clean’s Initial Franchise Fee, Royalty Fee, and Marketing Fee

• Bar-B-Clean’s initial franchise fee, royalty fee, and marketing fee, based on Items 5 and 6 of the company’s 2024 FDD:

• Initial Franchise Fee:  $49,500

• Royalty:  the greater of 6% of monthly Gross Revenue or $500 per month

• Brand Fund Contribution:  2% of your Gross Revenue

• Local Advertising Payment:  the difference between the amount you spent on local advertising each month and your required local advertising expenditure (an average of $1,000 per month each year)

• Local and Regional Advertising Cooperatives:  currently not assessed; if established, the contribution will be decided by cooperative members, between 1% and 3% of Gross Revenue

Section III – Number of Franchised and Company-Owned Bar-B-Clean Outlets

Franchised

2021

• Outlets at the Start of the Year:  24
• Outlets at the End of the Year:  23
• Net Change:  -1

2022

• Outlets at the Start of the Year:  23
• Outlets at the End of the Year:  23
• Net Change:  0

2023

• Outlets at the Start of the Year:  23
• Outlets at the End of the Year:  28
• Net Change:  +5

Company-Owned

2021

• Outlets at the Start of the Year:  1
• Outlets at the End of the Year:  1
• Net Change:  0

2022

• Outlets at the Start of the Year:  1
• Outlets at the End of the Year:  1
• Net Change:  0

2023

• Outlets at the Start of the Year:  1
• Outlets at the End of the Year:  1
• Net Change:  0

Section IV – News Updates on the Bar-B-Clean Franchise

Section V – Financial Performance Representations (Average Revenues and/or Profits) for the Bar-B-Clean Franchise (Item 19, 2024 FDD)

• As of December 31, 2023, Bar-B-Clean has one affiliate-owned Bar-B-Clean Business (“Affiliate Location”) and 28 franchised Bar-B-Clean Businesses (“Franchised Locations”) operated by 15 franchisees.

• Bar-B-Clean treats each signed franchise agreement as a separate Bar-B-Clean Business; however, some franchisees report financial data for multiple franchise agreements together as noted below.

• The financial information provided in the following tables represents the historical performance of the data of the Affiliate Location and a subset of Franchised Locations.

• Bar-B-Clean includes data from: (i) six full-time Franchised Locations where the Bar-B-Clean Business is the franchisee’s primary job and the franchisee operates on a full time basis (“Full Time Franchised Locations”); (ii) two part-time Franchised Locations where the franchisee operates the Bar-B-Clean Franchised Location in addition to a full-time job and the franchisee operates on a part-time basis (“Part Time Franchised Locations”); and (iii) one Affiliate Location that operated during the entire 2023 fiscal year on a full-time basis (“Reporting Group”) and reports on results attained during calendar year 2023 (“Reporting Period”).

• Each Franchised Location and the Affiliate Location in the Reporting Group reported Gross Revenue for all 12 months of the Reporting Period.

• The Full Time Franchised Location in Ventura, California (“Ventura Franchised Location”) owns two Franchised Locations but only operated one of them in 2023.

• The Texas Franchised Locations (defined below) reported the data of three Franchised Locations together.

• Some Franchised Locations in the Reporting Group differ from the franchised Bar-B-Clean Businesses offered under the disclosure document due to size of their territories, which range from approximately 100,000 to 175,000 households, except for the three Franchised Location (collectively, the “Texas Franchised Locations”), whose franchisee operated in a territory with 269,099 households until April 2023 and added two additional Franchised Locations with a total of 234,331 households in April 2023.

• The Texas Franchised Locations operates within a territory that includes rural areas and services the territory with a staff that is comparable to a franchisee operating within a single territory in a densely populated area.

• The current standard territory includes 75,000 households with an opportunity to add up to 25,000 additional household (for a total of 100,000 households).

• Bar-B-Clean also permits franchisees to operate in multiple territories under a Multi-Unit Addendum.

• The Affiliate Location shares many of the same characteristics as Bar-B-Clean’s Franchised Locations, including degree of competition and services and goods offered, except the Affiliate Location does not pay the Royalty and Technology Fee. The Affiliate Location contributes to the Brand Fund on the same basis as franchisees.

• The financial information for the Affiliate Location was prepared from internal accounting records and reports. Data for the Franchised Locations is based on financial information reported to Bar-B-Clean by the franchisees. The information included in these financial performance representations has not been audited but Bar-B-Clean has no reason to doubt its accuracy.

Part 1 – Average and Median 2023 Gross Revenue

Full-Time Franchised Locations (excluding Texas Franchised Location)

• 2023 High Gross Revenue:  $373,374
• 2023 Average Gross Revenue:  $294,915
• 2023 Low Gross Revenue:  $253,886
• 2023 Median Gross Revenue:  $257,485
• Number and Percentage Meeting or Exceeding Average:  1 of 3 / 33%

Full-Time Franchised Locations and Affiliate Location

• 2023 High Gross Revenue:  $814,330
• 2023 Average Gross Revenue:  $415,708
• 2023 Low Gross Revenue:  $253,886
• 2023 Median Gross Revenue:  $373,374
• Number and Percentage Meeting or Exceeding Average:  1 of 5 / 20%

All Part-Time Franchised Locations

• 2023 High Gross Revenue:  $39,167
• 2023 Average Gross Revenue:  $32,267
• 2023 Low Gross Revenue:  $25,367
• 2023 Median Gross Revenue:  $32,267
• Number and Percentage Meeting or Exceeding Average:  1 0f 2 / 50%

Part 2 – 2023 Gross Revenue for Full-Time Franchised Locations in the Reporting Group

• Ventura:  $257,485
• Temecula:  $253,886
• SW Florida:  $373,374
• Texas:  $814,330

Part 3 – 2023 Gross Revenue for Part-Time Franchised Locations in the Reporting Group

• N. Fort Worth:  $39,167
• South Carolina:  $25,367

• “Gross Revenue” means the total revenue derived from the sale of goods or services less sales tax, discounts, allowances, and returns.

• Bar-B-Clean’s Affiliate Location is comparable to a Full Time Franchised Location although the owner and operator also serves as Bar-B-Clean’s Director, President, and Chief Financial Officer.

• As noted in Part 5, Part-Time Franchised Locations reported between 67 and 70 Jobs (as defined below) per year, while Full Time Franchised Locations reported between 379 and 680 Jobs. The Affiliate Location reported 822 Jobs.

• The financial performance representations in Parts 1 to 3 do not reflect the costs of sales, operating expenses, or other costs or expenses that must be deducted from the gross revenue or gross sales figures to obtain your net income or profit.

Part 4 – 2023 Adjusted Earnings and Adjusted Margin for the Affiliate Location

N. Orange Affiliate

Total Gross Revenue:  $397,467 (100%)

Cost of Goods Sold:  $55,130 (13.87%)

Gross Profit:  $342,337 (86.13%)

Operating Expenses

• Liability Insurance:  $4,800 (1.21%)
• Marketing and Advertising:  $28,729 (7.23%)
• Meals and Entertainment:  $1,874 (0.47%)
• Office Expenses/Supplies:  $6,744 (1.70%)
• Technicians/Ops Payroll:  $124,731 (31.38%)
• Professional Fees:  $1,450 (0.36%)
• Telephone and Computer Services:  $1,782 (0.45%)
• Total Operating Expenses:  $170,110 (42.80%)

Franchise Fees (Imputed)

• Royalty (6%):  $23,848 (6%)
• Brand Fund (2%):  $7,949 (2%)
• Technology Fee:  $500 (0.13%)

Adjusted Earnings:  $139,930 (35.2%)

• “Cost of Goods Sold” includes the cost of Parts & New Grills. No other costs and expenses are included.

• “Gross Profit” means Gross Revenue less Costs of Goods Sold.

• “Operating Expenses” includes liability insurance, marketing and advertising, meals and entertainment, office expenses/supplies, technicians/ops payroll, professional fees, and telephone and computer services.

• “Franchise Fees” – Imputed Fees. Bar-B-Clean has imputed certain fees assessed by it and made adjustments based on the fees paid and expenditures required under our current Franchise Agreement for the Affiliate Location.

• Franchised Bar-B-Clean Businesses are required to pay a Royalty of the greater of 6% of Gross Revenue or a $500 monthly minimum and are subject to a Brand Fund Contribution of 2% of Gross Revenue.

• The illustrative adjustments of adding the Royalty and the $500 Technology Fee are based on the fees that would have been charged if the Reporting Affiliate Locations were operating under the terms of Bar-B-Clean’s franchise agreement. In making the Franchise Related Adjustments, Bar-B-Clean assumed that any additional expenses would not have a direct or indirect material effect on revenue or other expenses.

• “Adjusted Earnings” refers to Gross Profit less Operating Expenses and Franchise Fees. It does not include the deduction of taxes, interest, depreciation, or amortization.

• “Margin” is calculated by dividing Gross Revenue by Adjusted Earnings.

Part 5 – Average and Median Total Jobs and Revenue Per Job for the Affiliate Location in the Reporting Group

Full-Time Franchised Locations (excluding Texas Franchised Location)

• 2023 High Revenue Per Job:  $652
• 2023 Average Revenue Per Job:  $487
• 2023 Low Revenue Per Job:  $379
• 2023 Median Revenue Per Job:  $430
• Number and Percentage Meeting or Exceeding Average:  1 of 3 / 33%

• 2023 High Total Jobs:  680
• 2023 Average Total Jobs:  614
• 2023 Low Total Jobs:  573
• 2023 Median Total Jobs:  590
• Number and Percentage Meeting or Exceeding Average:  1 of 3 / 33%

All Full-Time Franchised Locations and Affiliate Location

• 2023 High Revenue Per Job:  $652
• 2023 Average Revenue Per Job:  $466
• 2023 Low Revenue Per Job:  $379
• 2023 Median Revenue Per Job:  $430
• Number and Percentage Meeting or Exceeding Average:  2 of 5 / 40%

• 2023 High Total Jobs:  2011
• 2023 Average Total Jobs:  935
• 2023 Low Total Jobs:  573
• 2023 Median Total Jobs:  680
• Number and Percentage Meeting or Exceeding Average:  1 of 5 / 20%

All Part-Time Franchised Locations

• 2023 High Revenue Per Job:  $560
• 2023 Average Revenue Per Job:  $470
• 2023 Low Revenue Per Job:  $379
• 2023 Median Revenue Per Job:  $470
• Number and Percentage Meeting or Exceeding Average:  1 of 2 / 50%

• 2023 High Total Jobs:  70
• 2023 Average Total Jobs:  69
• 2023 Low Total Jobs:  67
• 2023 Median Total Jobs:  69
• Number and Percentage Meeting or Exceeding Average:  1 of 2 / 50%

Part 6 – Total Jobs and Revenue Per Ticket for the Affiliate Location in the Reporting Group 2022

N. Orange Affiliate

• Total Jobs:  822
• Revenue Per Job:  $462

• “Job” refers to each unique transaction completed by the Franchised Location or Affiliate Location.

• “Total Jobs” refers to the total number of Jobs completed during the 2023 Reporting Period.

• “Revenue per Job” is calculated by dividing the 2023 Gross Revenue for each business in the Reporting Group by the Total Jobs.

Section VI – Bar-B-Clean Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️