included sales figures for 71 master franchises and excluded 15 franchisees because either they had not had a continuous operation, did not submit financial data, or were transferred in that reporting year.
The below table provides certain results for the 71 master franchises in the sample
Category | Annual Average | Percentage Of Master Franchises In Sample That Achieved This Result | Number of Master Franchises In Sample That Achieve This Result | Lowest | Highest | Median |
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Gross Profit | $1,455,074 | 45% | 32 | $101,969 | $4,425,336 | $1,274,682 |
Sales Figures Key Insights:
Shown above is the Gross Profit of franchisees in the reporting group. Note that the Gross Profit presented still includes the fees needed to pay the Franchisor (Royalty and Sales fee).
The annual average gross profit is a healthy number at $1,455,074 considering it is more than double the high-end franchise cost to start the business ($768,000).
JAN-PRO International Franchising LLC Income Statement Highlights:
JAN-PRO posted a Net Income of around 8 million in 2019, which is 4.5 million lowers than 2018 which reported at around 12.5 million. This change in net income was due to changes in credit for income taxes.
A net income of around 8 million is a healthy number that represents the company should have the ability to pay off any future debt or obligations.
Competition:
The market for commercial janitorial service franchises is well-developed and competitive. Unit Franchisees also must compete with national and local businesses offering the services that are the same as or similar to the Services. Other competing janitorial services include Coverall, Vanguard Cleaning Systems, and Anago.
Conclusion:
JAN-PRO is a well-established business and has been providing master franchise locations for over 14 years. They have over 90 franchise units and provide a very recession proof business model and especially sought after right now during the COVID-19 Pandemic.
While this may be the business for you, make sure to also check out other businesses offered on Vetted Biz and in the Cleaning and Maintenance Industry.
Analysis Provided by: Brooks Gammill Vetted Biz Intern