Jani-King Franchise Costs, Fees & FDD

Year Business Began: 1969

Franchising Since: 1974

Headquarters: Addison, Texas

Estimated Number of Units: 6,950

Franchise Description: The franchisor, Jani-King International, Inc., grants Jani-King subfranchising rights. The subfranchisors (also sometimes called regional franchisors) grant individual franchises for Jani-King franchises in their respective regions. The individual 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 can provide include carpet cleaning, hard floor care, trash disposal, window washing, wall cleaning, and other specialty cleaning services on a daily, weekly, or monthly schedule.
Training Overview: Franchisees and all of the owners, directors or officers who will actively participate in the operations of the franchised business must attend and complete the initial training program. Initial training is conducted at the principal business office of a regional franchisor, one or more designated local customer locations, or a local regional office. The initial training program is presented through classroom lectures and discussions, actual demonstrations, printed manuals, video presentations, formal instructions, and practical hands-on training. The initial training program will also include approximately 9.5 hours of 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 Granted: Regional franchisors will license and offer franchisees the right to provide services under their agreement in a specific, non-exclusive, geographical territory. Franchisees must not knowingly interfere, solicit, or otherwise contact in any manner a current customer or prospect of another Jani-King franchisee of a regional office, unless the regional franchisor requests in writing that they do so. 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.

Obligations and Restrictions: Franchisees must participate personally in the direct operation of the franchise business. 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 are required to hire at least one employee for their business, other than themselves. Franchisees and their employees also may be required to undergo background checks as a condition of being offered the right to provide services to some customer locations. 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 optional goods and services.

Term of Agreement and Renewal: The length of the franchise term is 10 years. If franchisees are in good standing, they can renew or extend the term on the franchisor’s then current terms for three additional 10-year periods.

Financial Assistance: The franchisor is not obligated to offer financing for the initial franchise fee but may offer financing in the future. Lease arrangements for most of the equipment franchisees will use in their franchise may be provided. The franchisor may modify the terms and conditions of any leasing arrangement as it considers appropriate. The franchisor offers a 50% discount off the initial franchise fee to qualifying veterans.

Estimated Initial Investment

Name of Fee	Low	High
Initial Franchise Fee (dependent on plan type)	$5,000	$195,500
Real Estate	$0	$5,000
Supplies	$1,800	$2,300
Equipment	$2,700	$9,750
Security deposits, License Registrations, etc.	$100	$1,000
Business Entity Establishment Fees	$100	$1,000
Additional Funds (initial 120 days)	$800	$8,500
ESTIMATED TOTAL	$10,500	$223,050

 
Other Fees

Type of Fee	Amount
Royalty	10% of monthly gross revenue.
Accounting and Sales Fee	Currently, 7% of monthly gross revenue.
Advertising Fee	Currently 1.5% but may be increased to up to 2.5% of monthly gross revenues.
Technology Licensing Fee	1% of monthly gross revenue.
Additional Training Fee	$50/hour plus expenses. Not currently charged.
Transfer of Franchise Fee	The lesser of $2,000 or 10% of the sales price or exchanged value; if no transfer fee is charged with an ownership change, then $250 administrative fee for preparation of documents.
Charge Back	Varies, depending on outstanding receivables.
Customer Complaint and Service Fee	$50 plus currently $50 per labor hour plus expenses; may increase with prior notice to franchisees. Applies only if the franchisor responds to a customer complaint.
Business Protection Plan (Optional)	Currently 4% 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.
Liquidated Damages	$500/day.
Costs and Attorneys’ Fees	Will vary under circumstances.
Indemnification	Will vary under circumstances.
Audit	All costs and expenses, for example, reasonable accounting and attorney fees.

The above information has been compiled from the FDD of Jani-King (of Madison, WI). Year of FDD: 2025.
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