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Jani-King Franchise Cost & Fees

Date of Incorporation: 1969

Franchising Since: 1974

Headquarters: Addison, Texas

 

Business Description: The franchisor, Jani-King Franchising, Inc. (JKF), is in the business of franchising comprehensive commercial cleaning and maintenance businesses. The franchise is for a business that will sell and support franchise businesses that will, in turn, provide comprehensive, commercial cleaning and maintenance services. JKF is a wholly owned subsidiary of Jani-King International, Inc.

 

Franchise Offer: The franchise granted is for the performance of complete cleaning and/or maintenance related services, including commercial, industrial, institutional cleaning and/or maintenance services, and the distribution of related supplies and equipment under the name JANI-KING. The type of services franchisees will be offered to provide include carpet cleaning, hard floor care, trash disposal, window washing, wall cleaning, and other specialty cleaning services in various industries on a daily, weekly, or monthly schedule.

 

Financial Assistance: The franchisor does not offer financing for the Initial Franchise Fee. It does offer an equipment lease through an affiliate. The affiliate, LEASING, provides lease arrangements for most of the equipment franchisees will use in their franchise. LEASING determines all the terms and conditions of the leases offered by them, and they may be modified or changed without consent from Jani-King. Other financing options may be available depending on the region the franchise will be located.

 

Training and Assistance: The franchisor will provide initial training on the operation of the franchise business to franchisees, and franchisees must attend and complete, to our satisfaction, our initial training program within six months after the signing of the Franchise Agreement. Training is conducted at local regional office and one or more designated local customer locations. The training program offered generally will consist of at least 12 training sessions, held usually in the evenings and on weekends over a three-week period, and includes approximately 30 hours of instruction including self-study. The franchisor will provide additional training, seminars and refresher courses to franchisees that franchisees may attend at their option, but except in the case where they had an account transfer or cancel due to improper operation of their franchise, attendance is not required.

 

Territory: Franchisees will not receive an exclusive territory. Franchisees may face competition from other franchisees, from outlets that the franchisor owns, or from other channels of distribution or competitive brands that the franchisor owns or controls.

 

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: Franchisees must participate personally in the direct operation of the franchise business. The direct, on-site supervision must be done by a person who owns at least 1/3 of the business equity that owns the franchise. The franchisee’s franchise will be responsible for the services performed at the customer locations where that franchisee provides service, and that franchisee must provide all labor, materials, tools and supplies necessary to service those premises. Franchisees must offer for sale all types of products, and perform all services, that the franchisor requires for JANI-KING businesses. Franchisees may not offer for sale any types of products or perform any services that have not been authorized. Franchisees are limited in the operation of the franchise business to the offering of cleaning services and supplies to the public. The franchisor also designates some goods and services as optional for qualified franchisees. The franchisor may require special training and certification before it will allow franchisees to offer these goods and services.

 

Estimated Number of Units: 12,000

 

Investment Tables:

Initial Investment

Name of Fee Low High
Initial Franchise Fee and Initial Finder's Fee $12,000 $16,250
Real Estate $0 $5,000
Supplies $600 $800
Equipment $1,948 $6,300
Security deposits, etc. $100 $1,000
Business Entity Establishment Fees $100 $1,000
Additional Funds (For initial 120 day period) $800 $8,500
ESTIMATED TOTAL $15,548 $38,850

 

Other Fees

Type of Fee Amount
Contract Service and Sales Royalty 10% of monthly Gross Revenue.
Accounting 2% of monthly Gross Revenue.
Initial Franchise Fee Monthly Payment Varies, depending on the revenue of franchise.
Finder's Fee % based formula for each category of account type, calculated on the amount of additional business the franchisor offers the franchisee.
Business Protection Plan (Optional) 4-8% of monthly Gross Revenue plus cost of Employee Administration Fee of $7/month or $14/month.
Lease Payments to LEASING (Optional) Varies, depends on equipment leased, if any.
Charge Back Varies, depends on outstanding receivables.
Operations Assistance/ Complaint $50
Service Currently $18 per labor hour plus expenses. Can charge up to $50 per labor hour plus expenses.
Advertising 1.5% of monthly Gross Revenues.
Technology Licensing 1% of monthly Gross Revenues.
Additional Training $50/hour plus expenses.
Transfer The greater of $2,000 or 10% of the sales price or exchanged value.
Administrative $500
Liquidated Damages $1,000/day.
Costs and Attorneys' Fees Will vary under circumstances.
Non-Reported Business Fee $25 per day.
Indemnification Will vary under circumstances.
Audit All costs and expenses, i.e., reasonable accounting and attorney fees.
Replacement of Manual $25 per copy.
Missed Clean/No Show $100 per occurrence.
Missed Contract Evaluation Sheet $50 per missing contract evaluation.
Non-Compliance with Uniform Policy $50 for each incident per employee.
Non-Compliance with Name Tag Policy $50 for each incident per employee.

The above information has been taken from the FDD of Jani-King. Year of FDD: 2014

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