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 2024 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 2024 FDD

Section III – Number of franchised and company-owned Fleet 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 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 2024 FDD, including information on the:

• 2023 average, median, highest, and lowest gross revenue for the 30 Fleet Clean franchisees that were open continuously and operated as a franchise during the fiscal year ended December 31, 2023

• 2023 average gross revenue, franchise fees, personnel expenses, chemicals and supplies, fuel, insurance, miscellaneous expenses, and net profits for the 19 Fleet Clean franchisees that were open continuously and operated as a franchise during the fiscal year ended December 31, 2023, 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

• 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:  $45,000 to $70,000
• Fleet Clean Proprietary Wash Box and Installation:  $64,000 to $72,000
• 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:  $500 to $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:  $172,950 to $449,375

Section II – Fleet Clean’s Initial Franchise Fee, Royalty Fee, and Marketing Fee

• Initial Franchise Fee:  $10,000 to $150,000
• Royalty Fee:  8.5% of your Gross Revenue
• Advertising Obligations:  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

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

2023

• Outlets at the Start of the Year:  42
• Outlets at the End of the Year:  37
• Net Change:  -5

Company-Owned

2021

• Outlets at the Start of the Year:  4
• Outlets at the End of the Year:  9
• Net Change:  +5

2022

• Outlets at the Start of the Year:  9
• Outlets at the End of the Year:  8
• Net Change:  -1

2023

• Outlets at the Start of the Year:  8
• Outlets at the End of the Year:  17
• Net Change:  +9

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, 2024 FDD)

Part 1 – FY 2023 Annual Gross Revenue for All Included Franchisees

• The following tables show the historical information for the 30 Franchisees (each an “Included Franchisee”) that were open continuously and operated as a Franchise during the fiscal year ended December 31, 2023 (“FY 2023”).

• Of the 47 Franchises that were open at any time during FY 2023, Fleet Clean did not include data in this Item 19 for the following:

• Eight Franchises were reacquired by Fleet Clean and operated as company-owned units during 2023.
• Two Franchises were reacquired by Fleet Clean’s affiliate and operated as affiliate-owned units during 2023.
• Two Franchises were reacquired by Fleet Clean in 2023 and resold to franchisees in 2023.
• Five Franchises commenced operations in 2023.

• Average Gross Revenue:  $856,583.24
• Median Gross Revenue:  $475,889.98
• High Gross Revenue:  $3,674,906.42
• Low Gross Revenue:  $69,809.46
• Franchisees Meeting/Exceeding Average Gross Revenue:  7/30 (23%)

Part 2 – FY 2023 Expenses for Included Franchises Who Provided Fleet Clean with Expense Data

• The following table is a summary statement for the 19 Included Franchises that provided Fleet Clean with complete financial information. 11 of the 30 Included Franchises 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:  19
• Average Gross Revenue:  $1,086,478.14 (100.0%)
• Average Franchise Fees:  $130,657.04 (12.0%)
• Average Personnel Expenses:  $470,189.00 (43.3%)
• Average Chemicals and Supplies:  $41,182.76 (3.8%)
• Average Fuel:  $64,524.55 (5.9%)
• Average Insurance:  $48,663.72 (4.5%)
• Average Miscellaneous Expense:  $136,759.63 (12.6%)
• Average Net Profits:  $194,501.45 (17.9%)

• As used in this Item 19, “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.

• 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) ⬇️