JAN-PRO Cleaning Systems Regional Developer/Master Franchise Costs, Fees & FDD

Year Business Began: 1991

Franchising Since: 1992

Headquarters: Alpharetta, Georgia

Estimated Number of Units: 11,265 (unit franchises)

Franchise Description: The franchisor is Jan-Pro Franchising International, Inc., which is a wholly-owned subsidiary of Empower Brands, LLC. The franchisor offers a regional developer (or master franchisee) franchise for the right to sell and support unit franchises that will operate janitorial and building maintenance service businesses under the name “JAN-PRO Cleaning & Disinfecting.” Regional developers offer and grant unit franchises to business entities within the geographic area stated in the Franchise Agreement. Unit franchisees may contract with regional developers to provide them with certain support services that may include marketing and sales services and billing.
Training Overview: Before regional developers open their franchise, the franchisor may require that the manager and one additional person the franchisor designates attend and successfully complete the certification program to its satisfaction. The franchisor provides the certification program at no charge for up to two people; provided they attend the same certified training program. All training takes place at the franchisor’s corporate headquarters unless stated otherwise. Currently, the certification program consists of 50 hours of classroom training and 21 hours of on-the-job training. Franchisees must attend additional certification programs and refresher courses the franchisor provides. In addition, the franchisor may arrange franchisee conventions, meetings, and teleconferences it will require regional developers to attend.

Territory Granted: Regional developers will operate their franchise in the exclusive territory stated in their Franchise Agreement. The territory is typically noted by the boundaries of the designated Standard Metropolitan Statistical Area, or county or city borders sufficient to encompass a stated population. The population for the territory will typically contain a minimum of 300,000 people. Regional developers and the franchisor will agree on the territory, and regional developers will be provided with the boundaries of the territory before they sign their Franchise Agreement. As long as regional developers/master franchisees fully comply with their Franchise Agreement, the franchisor and its affiliates will not establish, or grant to any other person the right to establish, a franchise within the territory.

Obligations and Restrictions: The individual who owns the largest share of voting and ownership interests in the limited liability company or corporation must serve as the initial manager of the franchised business. At all times it is open for business, the franchised business requires the manager's day-to-day supervision. The Franchise Agreement requires the manager to devote his or her full time and attention and best efforts to the franchise. As a partnership, limited liability company or corporation, all of the owners must guarantee payment and performance of the obligations under the Franchise Agreement and are bound by all provisions of the Franchise Agreement. Regional developers must offer for sale all approved services and products; must not deviate from the franchisor’s brand specifications for the approved services and products without its written consent; and must discontinue offering any services or products it disapproves in writing. Performance standards apply. If regional developers fail to meet the performance standard, the franchisor may remove them from participation in national account programs, terminate the Franchise Agreement, terminate, reduce the protected rights in their territory, reduce their territory, mandate a performance plan or other remedies as solely determined in the discretion of the franchisor.

Term of Agreement and Renewal: The length of the initial franchise term for a regional developer franchise is 10 years. If regional developers are in good standing when the initial term or a renewal term expires, they may elect to sign a Renewal Franchise Agreement which will have a 10-year term.

Financial Assistance: Under limited and special circumstances, the franchisor may allow for a partial deferral or make optional financing available to qualifying existing franchisees. The franchisor does not arrange financing from other sources. The franchisor does not receive direct or indirect payments for arranging financing. The franchisor does not guarantee a franchisee’s obligations to third parties.


Estimated Initial Investment

Name of Fee	Low	High
Initial Franchise Fee	$50,000	$250,000
Real Estate	$1,500	$5,000
Initial Supplies	$1,500	$2,000
Equipment and Office Furniture	$10,000	$25,000
Business Licenses & Permits, Deposits and Other Prepaid Expenses	$1,000	$4,000
Insurance	$1,000	$3,000
Training	$3,000	$5,000
Legal Fees and Registration Expenses	$1,500	$10,000
Computer Hardware and Software	$7,500	$12,500
Initial Advertising Expenses	$3,000	$5,000
Additional Funds for 3 Months	$50,000	$100,000
ESTIMATED TOTAL	$130,000	$421,500

Other Fees

Type of Fee	Amount
Contract Services Fees	4% of gross monthly revenue.
Sales Royalty Fee	10% of the total initial franchise fees for unit franchises, upgrade fees for additional customer accounts, transfer fees for the transfer of a unit franchise, and all principal and interest collected during the previous calendar month.
Advertising Fee	Currently, contributions are the lesser of 0.5% of gross monthly revenue or $3,500 per month. Notwithstanding the foregoing, the minimum monthly contribution is $450 per month.
Local and Regional Advertising Cooperatives	Established by cooperative members.
Initial Certification Fees	The then-current fee (currently, $1,000 per person) for each person over two trainees.
Additional Certification Fees	The then-current fee (currently, up to $1,000 per person).
Promissory Note Payments	As determined when master franchisees purchase their franchise.
Insurance Fee	Reimbursement of the franchisor’s costs, plus interest at the lesser of 18% per annum or the maximum rate of interest permitted by law.
Business Protection Program Fees	Cost of the insurance, plus an administrative fee.
JanHub Software License Fee	The then-current fee (currently, there is no fee for JanHub).
Software Maintenance Fee	The franchisor currently does not charge this fee.
Web Hosting and Email Service Fees	A reasonable monthly license fee as the franchisor determines. Currently, the license fee is $80 per month for web hosting and $50 per month for email.
National Accounts Support Fees	25% of all national account revenue (excluding special services) during the first full month that services are performed; and 2% of national account revenue (excluding special services) thereafter; and 2% of national account revenue earned from the performance of special services thereafter.
Customer Portal Fee	The franchisor currently does not charge this fee.
Computerized or Manual Billing and Accounting Services Fee	Actual costs incurred.
Equipment, Supply or Supplier Testing or Inspection	Reimbursement of the franchisor’s out-of-pocket expenses, plus the then-current per diem charges for the franchisor’s personnel; amount varies, but will generally range from $1,000 to $2,000.
Consultation Fee	The then-current fee (currently $300 per day), plus travel expenses, currently not to exceed $350 per day).
Late Fees	$50 per day for late reports; the lesser of 5% of amount due for late payment of fees or the maximum amount permitted by law, plus default rate interest at 18% per annum or the maximum interest rate permitted by law.
Audit	Cost of audit and inspection, any understated amounts, plus interest at 18% per annum or the maximum interest rate permitted by law, and any related accounting and legal expenses.
Interim Management Fee	The then-current fee (currently, $5,000 to $8,000 monthly for accounting and other clerical services).
Professional Fees and Expenses	Actual costs incurred.
Reimbursement	The franchisor’s actual cost.
Indemnification	Varies according to the amount of the franchisor’s losses and expenses.
Renewal Fee	$20,000
Transfer Fee	10% of the purchase price subject to graduated rate reductions as set forth in FDD.
Appraisal Fee	50% of actual costs incurred.

The above information has been compiled from the FDD of Jan-Pro (Regional Developer Franchise). Year of FDD: 2025.
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