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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, is in the business of franchising comprehensive commercial cleaning and maintenance businesses.

 

Franchise Offer: Jani-King 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 schedule.

 

Financial Assistance: The franchisor does not offer financing for the Initial Franchise Fee. The franchisor provides optional lease arrangements for most of the equipment the franchisee will use through an affiliate, LEASING. LEASING determines all the terms and conditions of the leases offered by them, and they may be modified or changed without Jani-King’s consent. Jani-King guarantees the franchisee’s payment of the lease to LEASING, and LEASING pays Jani-King 7.5% of all lease payments.

 

Training and Assistance: The training program offered generally will consists of at least 13 training sessions, held usually in the evenings and on weekends over a three-week period, and includes approximately 40 hours of instruction including self-study. The program provides training in Jani-King methods and practices of professional cleaning services, management, sales and promotional techniques. The training program includes information about production procedures and rates, marketing, and management matters presented through classroom lectures and discussions, actual demonstrations, printed manuals, video presentations, formal instructions, and practical hands-on training. The home study materials include video training DVDs on cleaning techniques and safety that the franchisee may later use for personnel training. Jani-King will provide additional training, seminars, and refresher courses to the franchisee that may be attended at the franchisee’s option, except in cases where the franchisee had an account transfer or cancel due to improper operation of the franchise.

 

Territory: : The 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.

 

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 three additional 10-year periods.

 

Obligations and Restrictions: The franchisee 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 franchise will be responsible for the services performed at the customer locations where the franchisee provides service, 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 customer and in accordance with Jani-King’s performance standards. The franchisee must also maintain an acceptable relationship with the customer contact person. The franchisee required to hire at least one employee for the business, other than himself/herself. The franchisee and employees may also be required to undergo background checks as a condition to being offered the right to provide service to some customer's locations. The franchisee must offer for sale all types of products, and perform all services, that are required for Jani-King businesses. The franchisee may not offer for sale any types of products or perform any services that have not been authorized.

 

Estimated Number of Units: 12,000 units.

 

Investment Tables:

Initial Investment

Name of Fee Low High
Initial Franchise Fee $16,250 $142,750
Real Estate $0 $5,000
Supplies $600 $800
Equipment $1,919 $5,773
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 $19,769 $164,823

 

Ongoing Fees

Type of Fee Amount
Royalty 10% of monthly Gross Revenue
Accounting 2.5% of monthly Gross Revenue
Finder's Fee (Optional) % based formula for each category of account type listed in the FDD, calculated on the amount of additional business Jani-King offers to the franchisee.
Business Protection Plan (Optional) 4-7% 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 $15 per labor hour plus expenses; may charge up to $50 per hour
Advertising 1% of monthly Gross Revenues
Technology Licensing 1.5% of monthly Gross Revenues
Additional Training $50/hour plus expenses
Transfer of Franchise The greater of $2,000 or 10% of the sales price or exchanged value
Administrative $250 (as incurred)
Liquidated Damages $500/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

Year of FDD: 2012

The above information has been compiled from the FDD of Jani-King.

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