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JAN-PRO Franchise Unit Review (2021 FDD)

Written by: Patrick Findaro
Last Updated: June 27, 2022
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This article is based on its 2021 FDD.

JAN-PRO Franchise offers regional master franchises that have the ability to start unit franchises within their territory. JAN-PRO sells and supports unit franchises that will operate janitorial and building maintenance service businesses. JAN-PRO Master was incorporated in Massachusetts in 1995 and started selling franchises in 2005.

Russell Reynolds has been the President and Chief Executive Officer since October 2018. From July 2001 to October 2018, Russ was the Chief Executive Officer of Batteries Plus, L.L.C. and was a member of its Operating Committee from February 2000 to October 2018.

There are over 7,664 Unit Franchises which are controlled under 96 Regional Master Franchises, and no company owned locations.

The information provided below is from Indiana’s Regional Master Franchise, other regional master franchises information could be different.

jan pro

Initial Franchise Fee Unit Franchise

$6,750 – $52,500

The company offers 10 Franchise plans “FP”, they are listed in the chart below.

Initial Plan Account Gross Billings Total Fee If You Pay All Cash Down Payment Amount Financed Monthly Payment (24)
FP-12 Accounts totaling $1,000- per month $7,500 $6,500 $1,350 $6,150 $283.79
FP-18 Accounts totaling $1,500- per month $10,500 $9,450 $2,200 $8,300 $383.00
FP-24 Accounts totaling $2,000- per month $13,000 $11,700 $2,750 $10,250 $472.99
FP-36 Accounts totaling $3,000- per month $15,300 $13,770 $3,300 $12,000 $553.74
FP-48 Accounts totaling $4,000- per month $18,500 $16,650 $7,000 $11,500 $530.67
FP-60 Accounts totaling $5,000- per month $21,500 $19,350 $10,000 $11,500 $530.67
FP-72 Accounts totaling $6,000- per month $24,600 $22,140 $12,500 $12,100 $558.35
FP-90 Accounts totaling $7,500- per month $29,625 $26,663 $16,000 $13,625 $628.72
FP-120 Accounts totaling $10,000- per month $38,000 $34,200 $20,500 $17,500 $807.54
FP-180 Accounts totaling $15,000- per month $52,500 $47,250 $30,000 $22,500 $1,038.26

JAN-PRO Unit Franchise Cost

The total investment ranges from:

$9,875 – $66,495

Additional Cost Breakdown

Initial Franchise Fee$6,750 – $52,500
Travel and Living Expenses (Certification Program)$50 – $300
Office and Related Expenses$150 – $550
Vehicle$500 – $2,500
Initial Equipment Package$925
Real Estate$0 – $550
Floor Buffing Machine$50 – $900
Carpet Cleaning Machine$50 – $2,000
Insurance$200 – $620
Legal & Organizational Costs$1,000 – $2,000
Criminal Background Check$50 – $100
Billing Services Deposit (If applicable)$0 – $2,500
Mediation / Arbitration Waiver Fee$0 – $500
Additional Funds (3 Months)$150 – $550

Ongoing Franchise Costs and Fees

Royalty Fee: 10% of Gross Billings (Monthly)

Support Fee: 5% of Gross Billings (Monthly)

JAN-PRO Franchise Unit Sales Figures

The Regional Master Franchise in Indiana does not disclose sales figures of their 59 total units. They did include that they added 17 new JAN-PRO Unit franchisees in the fiscal year of 2019.

However, we can make an estimate based on JAN-PRO of Central Indiana‘s Income Statement:

JAN-PRO of Central Indiana had royalty fee revenues of $199,676 and charged 10% of gross billing for the previous month.

Therefore, in total, all 59 JAN-PRO units in 8 months made around $2 million. So $2 million divided by 59 units, has an average Gross Billings on a year adjusted average of roughly:

$42k

Please note this is just an estimate and actual figures are likely higher because 17 new locations opened in the fiscal year of 2019.

JAN-PRO of Central Indiana Income Statement

Statement of Income and Stockholder’s equity For the Eight Month Period Ended December 31, 2019

2019
Franchise fee revenues:
Interest on financing $7,085
Franchise fees 235,940
Royalty fees 199,676
Support fees 99,837
Business protection fees 99,838
Other fees and reimbursements 39,267
Total franchise fee revenues 681,643
Agency revenue 1,718
Supply revenue:
Sale of janitorial supplies 96,280
Cost of sales (93,846)
Net supply revenue 2,434
Total revenue 685,795
Operating expenses:
Corporate royalties 86,726
Payroll and related expenses 231,274
Occupancy 32,053
Selling, general and administrative 140,519
Total operating expenses 490,572
Income from operations 195,223
Other expenses:
Depreciation and amortization 57,516
Total other expenses 57,516
Net income 137,707
Retained earnings, beginning
Distribution (60,000)
Retained earnings, ending 77,707

Income Statement Highlights

JAN-PRO of Central Indiana posted a Net Income of $138k in 2019. The company distributed $60k of these profits and ended the year with retained earnings of $78k.

It had $682k of revenue from their 59 locations, and 17 of these locations were opened in that fiscal year.

jan pro

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 Unit Franchises are an opportunity to own a franchise in a very established cleaning service. JAN-PRO has 96 Regional Master Franchisees which control 7,664 Unit Franchises. Cleaning services and maintenance services will continue to be in high demand because of the COVID-19 pandemic and its lasting effects.

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.

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