JAN-PRO Cleaning Systems
Date Incorporation: 1995
Franchising Since: 1995
Headquarters: Alpharetta, Georgia
Country: U.S.
Business Description: Jan-Pro franchises are comprehensive cleaning and maintenance businesses that perform commercial, industrial, and institutional cleaning and maintenance services.
Franchise Offer: The franchisor, Jan-Pro Franchising International, Inc., has developed a system to independently own and operate a comprehensive cleaning and maintenance business that performs commercial janitorial and related services under the service mark Jan-Pro and other trademarks, trade names, service marks, slogans and logos that it may authorize from time to time.
Financial Assistance: The franchisor may finance a portion of the Initial Franchise Fee for qualified franchisees. The franchisor may also finance a portion of the Sales and Marketing Fee if the franchisee accepts Additional Accounts from them. Financing is also available for equipment leases. Jan-Pro does not offer financing for any other purpose. In addition, to provide support to past veterans and current veterans being released from active service, Jan-Pro offers all qualifying veterans 50% financing of the Initial Franchise Fee for all Initial Plans FP 20 and above.
Training and Assistance: Jan-Pro provides their Certification Program for up to four approved people for no charge, but may charge a reasonable fee for additional people that attend the Certification Program. The franchisee is responsible for all costs incurred by his or her representatives in attending certification, including meals, travel and salary. The Certification Program includes video, classroom, and on-site expert consultation.
Territory: The franchisee will not receive an exclusive territory. The franchisee may face competition from other franchisees, from outlets that the franchisor owns, or from other channels of distribution or competitive brands that the franchisor controls. Unit franchisees are granted permission to operate a Franchised Business within the territory of the Regional Master Franchisee.
Term of Agreement and Renewal: The length of the franchise term is 10 years. If the franchisee satisfies the conditions in the Agreement, he or she may renew for two additional terms of 10 years each.
Obligations and Restrictions: Jan-Pro requires that the franchisee have at least one person actively involved in the management of the Franchised Business, who may be the owner of an entity-franchisee or a manager that the franchisee has selected (or who has been selected by the owners of an entity-franchisee). The manager must have completed the Certification Program and other required programs to the franchisor’s satisfaction. The Manager and managerial employees must sign the franchisor’s form of confidentiality and non-competition agreement.
Total Number of Units: Over 11,200 units.
Investment Tables:
Initial Investment:
| Name of fee | Low | High |
|---|---|---|
| Initial Franchise Fee | $2,520 | $44,000 |
| Travel And Living Expenses While Training | $50 | $100 |
| Office and Related Expenses | $150 | $550 |
| Vehicle | $0 | $500 |
| Initial Equipment Package | $0 | $950 |
| Real Estate | $0 | $550 |
| Floor Buffing Machine | $25 | $900 |
| Carpet Cleaning Machine | $25 | $1,300 |
| Insurance | $200 | $325 |
| Legal & Organizational Costs | $25 | $680 |
| Mediation/Arbitration Waiver Fee | $0 | $500 |
| Additional Funds for 3 Months | $150 | $550 |
| Total Initial Investment | $3,145 | $50,905 |
Ongoing fees:
| Name of fee | Amount |
|---|---|
| Royalty Fee | 10% of Gross Billings for the preceding month |
| Management Fee | 5% of Gross Billings for the preceding month |
| Administrative Fee | 10% of Special Services Billings for the preceding month |
| JPCS Negotiation Fee | The first month’s Gross Billings under a JPCS Negotiated Contract |
| Complaint Fee and Service Fee | $50 for the Complaint Fee $50 per person an hour, plus expenses (including materials, supplies, and equipment) for the Service Fee. |
| Advertising Contribution | Not more than 1% of Gross Billings for the preceding month |
| National Accounts Management Fee | 1% of Gross Billings from National Accounts for the preceding month |
| Substitution Fee | The amount of any payments from the customer for whom the franchisor provides the services |
| Extension Fee | $1,500 |
| Transfer Fee | The greater of: $1,500 or 8% of the total Gross Billings for the 12-month period ending on the last day of the calendar month before the month in which the transfer is to occur |
| Advances | Amount of the uncollected Advance |
| Advance Assurance Fee | 2% of Gross Billings for the preceding month |
| Key Return Fee | $500 for each day that the franchisee does not comply with the key-return requirement |
| Replacement Manager Training Fee | All costs and expenses incurred by the franchisee’s representatives in attending the Certification Program. |
| Interest | The lesser of: (i) 18% per annum; or (ii) the maximum rate of interest permitted by law |
| Business Protection Program | Amount of the premium, fees payable to the franchisor for administering program, and other related and incidental costs |
| Default Collection Expenses | Amount of all expenses incurred in connection with engaging legal counsel and other professionals, whether or not a legal action or other proceeding is initiated |
| Indemnification | All amounts incurred or to which the franchisor becomes subject in connection with these actions, judgments, damages, etc. |
| Reimbursement for Performing Franchisee’s Obligations | Amount of the actual costs of performing, plus interest at the Contract Interest Rate beginning on the 10th day after the franchisor requests reimbursement |
| Lost Manual Fee | $200 for each replaced Manual |
| Collection Costs | Amount of franchisor’s out-of-pocket costs (including, attorney's fees and court costs) incurred to collect and enforce payments due under Accounts. |
| Insurance | Amount of the cost of the insurance, plus interest at the Contract Interest Rate, plus a reasonable fee for the franchisor’s expenses. |
Date of FDD: 2011
The above information has been compiled from the FDD of Jan-Pro along with online sources.
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