FRANCHISE·WATCH·DESK

Verified — real FDD extraction

SBA-eligible · directory code S2089 since 2017

CLEAN EATZ

Food & Dining · independent · est. —

Clean Eatz is a health-focused café and meal-prep business selling ready-made balanced meals, build-your-own bowls, and a grab-and-go meal plan program. A franchisee operates a small restaurant/kitchen, preparing portioned healthy meals for dine-in, takeout, and weekly meal-plan pickup.

CLEAN EATZ net unit count grew +42.0% from 20212023 per its FDD Item 20.

New to franchising? Start here

A franchise is a business where you (the franchisee) pay a company (the franchisor) for the right to open and run a location using their brand and system — think a local Anytime Fitness or Taco John's owned by a small-business owner, not the corporation.

Before you can buy in, U.S. law requires the franchisor to give you a Franchise Disclosure Document (FDD) — a long legal filing covering its fees, finances, and history. The numbers on this page come straight from that document:

  • Franchise fee — the one-time cost to buy in.
  • Royalty — the ongoing cut of your sales you pay the franchisor.
  • Item 20 — how many locations opened and closed, the basis for our verdict (from Proven & strong down to Distressed — or Too new to judge).

The verdict

Proven & strong

Distress

6
STABLE

Enough units and history to judge, and the record is good: growing or stable units with clean exits by the standards of its disclosed record. The main concern in the record: too many owners are failing outright rather than selling.

Exit rate · latest year

9.3%

vs 8.6% across 137 food & dining systems

Cost to open

$354K–$798K

Item 7 total investment range

SBA loan defaults

17.6%

17 loans resolved — directional only

Behind the verdict

the record, factor by factor · Item 20

hi-1.0.0
Net unit growth35%

3-yr trend · Item 20 Table 1

Strong
Exit quality25%

terminations + ceased-ops vs. all exits · Table 3

Weak
Transfer / churn15%

transfers vs. base · Table 3

Strong
Promise-keeping10%

actual vs. projected openings · Table 5

Strong
Transparency15%

Item 19 disclosure + completeness

Strong

Systemwide units

2021–2023

+42.0%
692021872022982023

Survival record

FDD Item 20 · outlet status by year

In fiscal 2023, 8 of 86 franchised outlets left the system — a 9.3% annualized exit rate, vs 8.6% across 137 food & dining systems. Not every exit is a failure — but this is the measurable floor.

Show the outlet tables
Status (FTC)202120222023
Outlets at start516987
Opened202121
Transfers152
Terminations000
Non-renewals000
Reacquired by franchisor000
Ceased — other reasons128
Outlets at end698798
Net change+18+18+11

The lender's view

SBA 7(a)/504 loan performance · FY1991–present

Banks have made 74 SBA-backed loans to CLEAN EATZ franchisees since 2018. Only 17 have resolved so far — too thin for a reliable default rate, but 3 of them charged off.

Charge-off rate

17 resolved · too thin to rate

Loss given default

avg. charged-off $ ÷ approved $

Expected loss

default rate × loss severity

Avg. loan · FY2020+

$440,543

what recent franchisees borrowed

Median time to default

42 mo

approval → charge-off, defaulted loans

Lenders · FY21+ vs FY16–20

27 vs 8

distinct banks still lending

Charge-off rate by loan approval year (%)

SOURCE: SBA 7(a)/504 FOIA LOAN DATA (DATA.SBA.GOV), FY1991–PRESENT · MATCHED TO CLEAN EATZ BY FRANCHISE NAME · RESOLVED = CHARGED-OFF + PAID-IN-FULL

The owner's side of the deal

FDD × federal loan record

Who finances it

the Huntington National Bank

23.0% of this brand's loans

That lender charges off 10.0% of its loans to other franchise brands, vs 14.8% nationally.

Who buys it

48.4%

first-time franchise owners

The rest already owned at least one other franchise. Across the corpus, brands bought mostly by repeat operators charge off at roughly 10% versus 17% for brands sold mostly to newcomers.

Does experience help here?

Not enough resolved loans to split

Computed from 74 SBA 7(a)/504 loans to CLEAN EATZ franchisees joined to the brand's own FDD. Debt service assumes level amortization at the average disclosed term and rate. A lender's rate excludes its loans to this brand, so it reads the lender, not the brand.

What it costs — and what it drags

FDD Items 5–7 · fees, investment, royalty

Buying in means a $50K franchise fee (Item 5) and a total investment of $354K–$798K (Item 7). The franchisor publishes an earnings claim (Item 19) — read its methodology closely.

To open (Item 7)

$354K–$798K

all-in investment range

Franchise fee (Item 5)

$50K

upfront, one-time

Royalty (Item 6)

6%

of sales, ongoing

If a unit does this in annual sales…$1M/yr

Your figure — cross-check against this brand's Item 19 and current-owner validation.

Royalty you'd pay / yr

$60K

6% of sales, before profit

Over a 10-yr term

$600K

royalties alone, excl. ad fund

This is not profit. It's the only money the FDD actually pins down — what you put in, and the royalty you owe on every dollar of sales. Your real take-home depends on labor, rent, food cost, and ramp-to-breakeven, none of which any FDD discloses.

Build a real pro-forma for CLEAN EATZ with an independent CPA

Labor record

US Dept. of Labor enforcement · franchisee-level · FY2005–present

Federal investigators have concluded 2 wage cases against operators of this system, recovering $320 in back wages for 3 workers. Some of these cases are recent, not ancient history. These cases name franchisee-owned locations, not the franchisor itself.

Concluded cases

2

Back wages owed

$320

Employees affected

3

Since 2020

2

Read this carefully. The employers in these cases are individual CLEAN EATZ franchisees — separately owned businesses operating under the brand name — not CLEAN EATZ itself. The franchisor is not the respondent and in most cases is not a party. What the record shows is how this system's operators run their payrolls, which is worth knowing before you become one of them. Counts rise with system size and with age: a 20-year-old, 10,000-unit system will out-count a young one regardless of conduct. Source: DOL Wage and Hour Division concluded compliance actions, FY2005–present, most recent finding 2025.

Modeled risk

FDD Risk Score · modeled from the public record

Moderate

Modeled from the public record, this brand looks safer than 63% of systems we score.

Risk percentile

37 / 100

Loan-corroborated

Modeled SBA charge-off

11.0%

Observed SBA charge-off

17.6%

Top drivers: Share financed by high-loss lenders (lowers) · System size (log units) (raises) · Investment ceiling (log) (lowers) · Net unit growth (lowers). 15+ resolved loans stand behind this estimate. A linear scorecard built from this brand's own disclosure figures plus the federal loan record behind its franchisees; full spec and cross-validated accuracy on the methodology page. A score is context, not a verdict.

Distress signals

news-sourced · bankruptcies, closures, lawsuits

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CLEAN EATZ franchise questions, answered from the filings

What percentage of CLEAN EATZ franchises closed last year?

In CLEAN EATZ's latest FDD Item 20 (fiscal 2023), 8 of 86 franchised outlets left the system — an annualized exit rate of 9.3% — compared with 8.6% across 137 food & dining systems tracked here. That counts terminations, non-renewals, and "ceased operations — other reasons." There is no official failure rate, and not every exit is a failure, but this is the measurable floor.

How much does a CLEAN EATZ franchise cost?

Per CLEAN EATZ's 2024 FDD, buying in requires an initial franchise fee of $50K (Item 5) and a total initial investment of $354K–$798K (Item 7).

What royalty does CLEAN EATZ charge?

CLEAN EATZ charges an ongoing royalty of 6.0% of gross sales, per Item 6 of its 2024 FDD.

Does CLEAN EATZ disclose earnings (Item 19)?

Yes — CLEAN EATZ makes a financial performance representation in Item 19 of its 2024 FDD. Read it closely: franchisors choose which units and which metrics to include.

Is CLEAN EATZ a good franchise to buy? Health score, exit rate & costs (2026) · Franchise Watch Desk