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Jan-Pro Franchise Cost & Fees

Date of Incorporation: 1995

Franchising Since: 1995

Headquarters: Alpharetta, Georgia

 

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 any other financing. In addition, to provide support to past veterans and current veterans being released from active service, Jan-Pro offers all qualifying veterans financing of 50% of the Initial Franchise Fee for all Initial Plans FP 20 and above.

 

Training and Assistance: Jan-Pro will provide the Training Program for up to four approved people for no charge, but may charge a reasonable fee for additional people that attend the Training Program. The Training Program includes video, classroom, and on-site expert consultation. The franchisee must attend, or cause one of the managerial personnel (satisfactorily to the franchisor) to attend, and successfully complete the Training Program as well as any other seminars, sessions, programs, consultations, and advanced instructional modules that the franchisor deems necessary. The franchisor may provide personal consultations, if the franchisor can reasonably accommodate. The franchisor may periodically introduce new methods and materials through personal consultations and group seminars. The franchisor may consult with franchisees on business and operational problems and analyze sales, marketing and financial data.

 

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.

 

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: The franchisor requires that franchisees have at least one person actively involved in the management of the franchise. The manager and managerial employees must sign the form of confidentiality and non-competition agreement. Franchisees must offer for sale all approved services and products; must refrain from deviating from the franchisor’s specifications for the approved services and products with the franchisor’s written consent; and must discontinue offering any services or products that it disapproves in writing.

 

Estimated Number of Units: 11,680

 

Investment Tables:

Initial Investment

Name of Fee Low High
Initial Franchise Fee $2,925 $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
EnviroShield Sprayer $25 $1,300
Insurance $200 $325
Legal & Organizational Costs $25 $680
Mediation/Arbitration Waiver Fee $0 $500
Additional Funds for 3 Months $150 $550
Estimated Total Initial Investment $3,700 $51,505

 

Other fees:

Type of fee Amount
Royalty Fee 10% of Gross Billings for the previous month.
Support Fee 5% of Gross Billings for the previous month.
Administrative Fee 10% of Special Services Billings for the previous month.
Negotiation Fee The first month’s Gross Billings under a Negotiated Contract.
Complaint Fee or Standards Violation Fee and Service Fee $50 for the Complaint or Standards Violation 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 previous month.
National Accounts Support Fee 2% of Gross Billings from National Accounts for the previous month.
Substitution Fee The customer’s payments for the substituted services.
Renewal Fee $1,500
Transfer Fee The greater of: $1,500 or 8% of the total actual Gross Billings for the 12 full calendar months before the transfer.
Advances Amount of the uncollected Advance.
Advance Assurance Fee 2% of Gross Billings for the previous month.
Key Return Fee $500 for each day that the franchisee does not return customer keys.
Replacement Manager Training Fee $250
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 The franchisor’s costs.
Indemnification All amounts the franchisor has to pay.
Reimbursement for Performing Franchisee’s Obligations Amount the franchisor pays, 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).
Insurance Amount of the cost of the insurance, plus interest at the Contract Interest Rate, plus a reasonable fee for the franchisor’s expenses.

The above information has been taken from the FDD of Jan-Pro. Year of FDD: 2014

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