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BBQ/ Grill Cleaning Franchise Review: Bar-B-Clean (2020)

Source: 2020 Bar-B-Clean Franchise Disclosure Document (FDD)

What is Bar-B-Clean?

Bar-B-Clean is in the home services industry, it is a mobile business that cleans and services barbecues for residential and commercial customers within a specific geographic area. Bar-B-Clean was founded in 2012 by Bryan Weinstein, who is still the director, president and Chief Officer in Yorba Linda, California. Mr. Weinstein is also the President and Owner of CNC Financial which owns the only affiliate franchise in North Orange County, CA.

As of December 31, 2019, there is one affiliate-owned location and 28 franchised Bar-B-Clean Businesses operated by 17 franchisees. These franchises are operated in seven states: Arizona, California, Florida, Louisiana, Oklahoma, Tennessee, and Texas. The company forecasted that they would open five new franchise locations in 2020, however the results of these plans are unknown especially due to the COVID-19 pandemic.

The typical length of time between signing the Franchise Agreement or the payment of any fees and the opening of the Bar-B-Clean Business can vary from two to eight weeks. The length of franchise term is seven years.

Initial Franchise Fee

Bar-B-Clean offers options to purchase multiple locations and discounts the initial franchise fee per territory.  (See Chart Below).

Bar-B-Clean Initial Franchise Cost

The total estimated initial investment of one Bar-B-Clean Franchise ranges from $36,950 to $50,070. The Franchise Agreement grants you an exclusive territory which generally includes up to 100,000 households with incomes of $50,000 and above.

Honorably discharged veterans of the United States armed forces and their spouses receive a 15% discount on the Initial Franchise Fee for each Bar-B-Clean Franchise (the “Veteran Discount”).

These are estimated initial expenses based on the best estimate of the costs you may incur in establishing and operating your Bar-B-Clean Franchise. Bar-B-Clean does not offer direct or indirect financing for these items.

The factors underlying Bar-B-Clean’s estimates may vary depending on several variables, and the actual investment you make in developing and opening your Franchise may be greater or less than the estimates given depending upon the location of your Franchise, and current relevant market conditions.

Your costs will also depend on factors such as how well you follow Bar-B-Clean’s methods and procedures; your management skills; your business experience and capabilities; and current local economic conditions.

Additional Costs Breakdown

Below is a list of the costs that factor in the range of startup costs from $36,950 – $50,070.

  • Real Estate and Improvements: $0-$2,000
  • Franchise Equipment Package: $3,000
  • Computer Equipment: $0-$1,000
  • Grand Opening Advertising: $1,500
  • Insurance: $500-$1,500
  • Professional Fees: $650-$1,500
  • Business Licenses & Permits: $0-$300
  • Training: $0-$950
  • Signage: $300-$1,000
  • Vehicle: $0-$1,000
  • Miscellaneous Costs: $0-$1,320
  • Additional Funds -3 Months: $1,000-$5,000

Ongoing Franchise Costs and Fees

Continuing Royalty: 8% of monthly Gross Revenues

Gross Revenue is all income from a sale of any Bar-B-Clean branded products or services. Gross revenue reporting excludes the cost of goods sold (COGS) and looks only at the money earned from sales by itself.

This payment is paid every 5th of the month. Bar-B-Clean reserves the right to require that the franchisee pay a minimum royalty of $240 per month.

Local Advertising Payment

The Franchisee is required to spend at least $1,500 for grand opening advertising before opening and during the first 30 days of operation. You must get prior approval to your grand opening advertising.

You must also spend an average of at least $300 per month each year on local advertising (“Local Advertising Requirement”). If you fail to meet your requirement on local advertising during any month period, Bar-B-Clean will require that you pay the difference between the amount you spent and the required advertising expenditure to them.

Creative Fund

Bar-B-Clean reserves the right to create a Brand Fund for marketing the System, the Marks, and Bar-B-Clean Businesses. If established, you must pay up to 2% of your Gross Revenues for the Brand Fund.

Bar-B-Clean did not collect or spend any Brand Fund Contributions during our last fiscal year, ending December 31, 2019.

Bar-B-Clean Sales Figures

The figures presented below represent the historical performance of the 12 Franchised Locations operated by nine franchisees and one affiliate location that opened prior to January 1, 2019.

This Reporting Group excludes 12 Franchised Locations that did not operate their Bar-B-Clean Businesses during fiscal year 2019. The Reporting Group also excludes four Franchised Locations that opened during fiscal year 2019, as well as four that closed during fiscal year 2019.

Disclaimers:

  • Location(s) with an * indicate that they operated their Bar-B-Clean on a part-time basis.
  • Location (2) stopped their operations due to personal reasons which reflects decreased Gross Revenue’s in 2019
  • Any location with multiple number of franchises has their revenue recorded in a lump sum, not broken down by each individual territory so the actual revenues represent a much lower value per territory (As seen in locations in Phoenix, AZ).

Bar-B-Clean Franchise Sales

2019 Average Gross Revenue (12): $84,054

2019 Median Gross Revenue (12): $62,084

Bar-B-Clean Affiliate Sales

2019 Average Gross Revenue (1): $171,239

Of the 12 franchisees in the recorded group, 50% (6) franchise locations were above the average gross revenue. The lowest reported gross revenue was $10,720, while the highest gross revenue was $242,289.

Of the 12 franchisees in the recorded group, 92% (11) franchise locations were lower than the average gross revenue of the affiliate location, which recorded a revenue of $171,239.

Conclusion

Bar-B-Clean is the on of the few grill cleaning franchise on the market and requires very little training (8 hours) to get your business up and going. Bar-B-Clean’s simple business model requires no new car, office space, or technical skills to run the business.

Although Bar-B-Clean might be the right franchise depending on your finances, location and other factors, it is important to consider other franchises that may suit your needs. We encourage you to view our franchise directory of over 1,800 franchises and franchise industries beyond home services. A great tool to check out for figuring out which business is right for you is to try Vetted Biz’s Find Your Business Quiz.

Content and Analysis provided by Brooks Gammill (Data Analyst Intern at Vetted Biz)

Want to know how Bar-B-Clean compares to other home services franchises? Download our industry guide!


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