Cleanest Restaurant GroupFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Cleanest Restaurant Group franchise requires a total initial investment of $103K – $144K, including a $60K franchise fee and an ongoing 8.0% royalty[2]. Per the 2025 FDD, average unit revenue was $224K[2]. Verdict grade: F. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $103K – $144K
- 3rd pct Service Resta…
- Avg gross sales
- $224K
- 0th pct Service Resta…
- Royalty
- 8.0%
- 44th pct Service Resta…
- Units
- 11
- 22nd pct Service Resta…
- SBA default
- 0.0%
- system-wide median varies by category
Quick verdict · Full-Service Restaurants · color = vs category peers
Green = >15% above Full-Service Restaurants avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
The franchisor's auditor raised doubt about continued operations. This is a serious risk signal.
Bottom line
- Total investment $103K – $144K including a $60K franchise fee, 8.0% ongoing royalty.
- Average unit revenue of $224K/year.
- Verdict F (Bottom Quintile) with a risk score of 84/100.
- Auditor disclosed a going-concern note, which flagged doubt about the franchisor's ability to continue operations. Verify against the latest FDD.
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Cleanest Restaurant Group Franchise Inc.
- Incorporated in
- NY
- HQ
- 40 West 37th Street, Suite 901, New York, New York 10018
- Auditor
- Metwally CPA PLLC
- Audited financials
- Franchisor revenue
- $229K
- vs $259K prior year
- ⚠ Going-concern note
- Disclosed in FDD 2025
- Auditor flagged doubt about continued operations. Verify against the latest FDD before deciding.
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.
- CEO
- Howie Lemon Jr.
- Headquarters
- NY
- Founded
- 2022
- FDD year
- 2025
- States available
- 3
FDD Item 7 · 2025 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $60K | $60K |
| Working capital (3–6 mo) | $17K | $28K |
| Equipment, build-out, other | $26K | $56K |
| Total initial investment | $103K | $144K |
Source: Cleanest Restaurant Group 2025 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$20K
9.0% margin
Unlevered ROIC
14%
EBITDA / total invested capital
Payback
7.2 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $103K – $144K
- Better than avg vs category
- Liquid capital req'd
- $17K – $28K
- Better than avg vs category
- Franchise fee
- $60K – $60K
- Near category avg vs category
- Royalty
- 8.0%
- percentage_of_gross · typical 6–8%
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 9.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 8.0% of gross sales |
| Marketing / ad fund | 1.0% of gross sales |
| Technology fee | $2K |
| Transfer fee | $15K |
| Renewal fee | $3K |
| Total fee load | 9.0% of rev |
Financial Performance
- Avg gross sales
- $224K
- Per unit, per year
- Median gross sales
- N/A
- Item 19 type
- Financial Performance Data of Company-Owned and Operational Franchise Outlets
- Sample size
- 4 units
- vs category median 13 · small
- Range (low → high)
- $98K→$349K
- Cohort dispersion (min → max)
- Transparency
- 10 / 5
- vs category median 4 / 5 · above
Compared against 1264 Full-Service Restaurants brands
vs Full-Service Restaurants averages
How Cleanest Restaurant Group Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 11
- Opened
- 6
- Last reporting year
- Closed
- 0
- Turnover rate
- 0.0%
- Company-owned
- 1
- Corporate units in the system
- % franchised
- 91%
- vs corporate-owned
- Net growth (yr3)
- +150.0%
- Net unit change last year
3-year detail · Item 20
- Transfers (3yr)
- 0
Last reporting year only, multi-year history not disclosed in this brand's FDD.
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 contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
Fast growth in a small system. Newer franchisors expanding quickly may not yet have the support infrastructure of larger systems.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA loan disclosures. This brand has only 7 7(a) loans on file; statistical reliability is limited below 10 loans.
- Total loans
- 7
- Loan volume
- $1.0M
- Median loan
- $140K
- 50th percentile
- Charge-off rate
- 0.0%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- N/A
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 4
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Cleanest Restaurant Group's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 4 lenders with concentration factor
- Per-state charge-off rates across 7 states
- Startup risk premium and job creation velocity
- 3-year lending trend
Instant access. No subscription.
Risk analysis
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.
Audited financials (Item 21)
Yes · Metwally CPA PLLC⚠ Going-concern note flagged
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Score breakdown · what drove the 84 / 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
| Initial term | 5 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 3 |
| Territory type | Population-based |
| Protected territory | Yes |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | New York |
| Litigation count | 0 |
Items 10, 11
Training & Operations
- Classroom training
- 13 hrs
- On-the-job training
- 32 hrs
- POS system
- Business Management System
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Business Management System
Item 20 · call current owners
Franchisee Contacts
10 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Cleanest Restaurant Group · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Cleanest Restaurant Group franchise?
The total investment to open a Cleanest Restaurant Group franchise ranges from $103K – $144K, with an initial franchise fee of $60K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Cleanest Restaurant Group franchise owners earn?
According to Item 19 of the Cleanest Restaurant Group FDD, the average gross sales per unit is $224K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Cleanest Restaurant Group's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Cleanest Restaurant Group (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many Cleanest Restaurant Group franchise locations are there?
As of their most recent FDD filing, Cleanest Restaurant Group has 11 total units in the United States. 6 new units were opened in the latest reporting year.
Is Cleanest Restaurant Group a good franchise to buy?
FranchiseVerdict rates Cleanest Restaurant Group as a F-grade franchise with a risk score of 84 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.