Cleanest Restaurant Group
Bottom line
- Total investment $103K – $144K including a $60K franchise fee, 8.0% ongoing royalty.
- Average unit revenue of $193K/year (median $162K). Estimated payback in 0.2 years.
- Rated STRONG with a risk score of 42/100. SBA loan default rate of 0.0% across 14 loans (below the industry average).
- Auditor disclosed a going-concern note — flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
Item 1 · who you're contracting with
The Franchisor
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one Cleanest Restaurant Group unit return on the cash you put in?
Unlevered ROIC · per unit
18%
Below typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Cleanest Restaurant Group units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$270K
on $1.3M purchase
Total debt
$1.1M
SBA $0.7M + senior + seller note
Overview
About
Cleanest Restaurant Group franchisees operate fast-casual or quick-service restaurant locations focused on cleanliness and hygiene standards. Day-to-day operations include food preparation, customer service, inventory management, facility sanitation protocols, staff oversight, and POS management while adhering to corporate cleanliness standards and brand consistency requirements.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 4 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator — not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Aggressive growth trajectory and implausible financial metrics warrant deep validation before investment; this appears to be an early-stage franchise system with significant execution risk.
Score breakdown · what drove the 42 / 100 rating
- 01MINORExtreme unit growth of 150% YoY suggests either aggressive expansion or significant turnover; sustainability unclear with only 11 total units
- 02MINORMassive net income-to-revenue ratio (366% or $705,930 net on $192,579 revenue) is mathematically implausible and suggests data error, accounting manipulation, or outlier franchisee performance
- 03MINORHigh initial investment ($102,686-$144,174) combined with 8% royalty requires $192,579+ annual revenue just to break even within 1-2 years, leaving minimal margin for error
- 04HIGHNo disclosed litigation history in a restaurant group is unusual; may indicate under-reporting or new franchise system with insufficient operating history
- 05MINOROnly 11 units is extremely small; insufficient data to validate unit economics or franchise model viability across different markets
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
10 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Cleanest Restaurant Group · FDD (2025) PDF