Jani-King
Date of Incorporation: 1969
Franchising Since: 1974
Headquarters: Addison, Texas
Country: U.S.
Description: The franchisor, Jani-King Franchising, Inc. (“JKF”), is a wholly owned subsidiary of Jani-King International, Inc. JKF is in the business of operating and franchising comprehensive cleaning and maintenance businesses.
JKF develops territories under a Regional Franchise program called "Master Franchises." Also, JKF directly offers franchises similar to our franchise program, under the "Associate Franchise" program, in territories where no regional support office has been established. An Associate Franchise will not be offered in the same territory where we have exclusive rights to offer our franchise program. JKF offers Master Franchisees the right to conduct a business of the same type you will operate, and to offer franchises similar to yours.
Franchise Offer: JKF grants franchises for the performance of cleaning and/or maintenance related services, including commercial, industrial, institutional, and residential cleaning and/or maintenance services and the distribution of related supplies and equipment under the name JANI- KING. The services the franchisee will offer include carpet cleaning, hard floor care, trash disposal, window washing, wall cleaning, and other specialty cleaning services on a daily, weekly, monthly, or other periodic schedule.
Financial Assistance: The franchisor may offer financing for the Initial Franchise Fee. The Initial Franchise Fee and the installment arrangements offered will vary according to the particular plan. The franchisor provides optional lease arrangements for most of the equipment the franchisee will use.
Training and Assistance: Within 60 days of the franchisee signing the Franchise Agreement, JKF will offer initial training on the operation of your franchise business to the franchisee, and the franchisee must attend and complete, to the satisfaction of JKF, the initial training program. Successful completion of the training program is mandatory for all owners, directors, or officers who will actively participate in the operations of the franchisee’s franchise business. The training may also be available to key personnel who will be employees of the franchise. JKF will conduct this training at their local regional office and one or more local client locations they designate. Initial training programs are offered at various times and JKF plans to be flexible in scheduling training to accommodate franchisees and their personnel. Typically, there is at least one training class offered each month, depending on how many new franchisees enter the system. The training program offered generally will consist of at least 12 training segments, held usually in the evenings and on weekends over a 3-week period, and includes approximately 31 hours of instruction and self-study.
Territory: No franchisee will not receive an exclusive area or territory. He/she may face competition from other franchisees, from outlets that the franchisor owns, or from other competitive brands that the franchisor controls. The franchisee will be licensed and provided business pursuant to the agreement in a specific, non-exclusive, geographical territory to be designated in the Franchise Agreement. JKF Affiliates and JKF reserve the right to use other channels of distribution to make sales within the franchisees territory using the Jani-King Marks.
Term of Agreement and Renewal: The length of the franchise term is 10 years. If the franchisee is in good standing, he/she can renew or extend the term on the franchisor’s then current terms for 4 additional 10-year periods.
Obligations and Restrictions: The franchisee must participate personally in the direct operation of the franchise business. If the franchisee is a corporation, the direct, on-site supervision must be done by a person who owns at least 1/3 of the corporate equity. The franchisee will be solely responsible for the services performed at the client locations, and the franchisee must provide all labor, materials, tools, and supplies necessary to service those premises. The franchisee must perform all of those services in a good and workmanlike manner, to the satisfaction of the client and in accordance with our performance standards. The franchisee must offer for sale all products, and perform all services, that the franchisor requires for Jani-King businesses. The franchisee may not offer for sale any products or perform any services that have not been authorized.
Total Number of Units: Over 12,000 units.
Investment Tables:
Initial Investment:
| Expenditure | Low | High |
|---|---|---|
| Initial Franchise fee | $7,500 | $16,750 |
| Real Estate | $0 | $5,000 |
| Supplies | $600 | $1,000 |
| Equipment | $500 | $5,800 |
| Security deposits, etc. | $100 | $1,000 |
| Additional Funds (120 days) | $800 | $8,500 |
| Application Fee | $25 | $100 |
| Total | $9,525 | $38,150 |
Ongoing Fees:
| Name of Fee | Amount |
|---|---|
| Royalty | 10% of Gross Monthly Revenue |
| Accounting | 4% of Gross Monthly Revenue |
| Finder's Fee (Optional) | % formula for each category of account type scheduled, times amount of additional business offered |
| Insurance | Optional Business Protection Plan is 6.5% of gross revenue accrued each month plus $10-$25 per month for Employee 3-D Crime Coverage. |
| Lease Payments (Optional) | $0 if the franchisee owns or purchases required equipment, otherwise $160-$490 per month |
| Charge Back | Variable based on outstanding receivables |
| Operations Assistance/ Complaint | $50 |
| Service | Currently $18 per labor hour plus expenses; May charge up to $50 per hour |
| Advertising | 2% of Gross Monthly Revenues |
| Additional Training | $50/hour plus expenses |
| Transfer | The greater of $2,000 or 10% of the sales price |
| Administrative | $250 |
| Liquidated Damages | $1,000/day |
| Costs and Attorneys' Fees | Will vary under circumstances |
| Indemnification | Will vary under circumstances |
| Audit | All costs and expenses, i.e., reasonable accounting and attorney fees |
| Replacement of Manual | $40 per copy |
| Compliance | $50 |
Date of FDD: 2009
The above information has been taken from the UFOC/FDD of Jani-King.
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