JAN-PRO Cleaning Systems

Date 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 financing for any other purpose. In addition, to provide support to past veterans and current veterans who are 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 will provide franchisees with a comprehensive initial training program. Franchisees may request personal consultations, which will be provided if the franchisor can reasonably accommodate. From time to time throughout the term, the franchisor may train, retrain, and introduce new methods and materials through personal consultations and group seminars. The franchisor may consult with franchisees on business and operational problems. Jan-Pro will help franchisees bid and negotiate cleaning services contracts if the franchisee requests. If requested, the franchisee must pay a negotiation fee. The franchisor will conduct annual advanced certification training.


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 manager must devote his or her best efforts to managing and operating the franchised business. The manager is the franchise owner, unless the franchisor otherwise agrees in writing. Franchisees may sell only goods and services approved by Jan-Pro. Franchisees must sell all goods and services Jan-Pro authorizes.


Total Number of Units: 11,535

 

Investment Tables:

Initial Investment:

Name of fee Low High
Initial Franchise Fee $2,920 $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 $180
Mediation/Arbitration Waiver Fee $0 $500
Additional Funds for 3 Months $150 $550
Estimated Total Initial Investment $3,550 $50,405

 

Other fees:

Name of fee Amount
Royalty Fee 10% of Gross Billings for the preceding month.
Support 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 Support 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.
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 $500
Interest The lesser of: (i) 18% per annum; or (ii) the maximum rate of interest permitted by law.
Audit All amounts due in connection with the understated amount, as well as interest at the Contract interest rate.
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.
Testing Fee Amount not to exceed the reasonable cost of the inspection and the actual cost of the testing.
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 Customer 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: 2013

The above information has been compiled from the FDD of Jan-Pro along with online sources.

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