JAN-PRO Franchise Unit Review (2021 FDD)
Written by: Patrick Findaro
This article is based on its 2021 FDD.
JAN-PRO Franchise A franchise is when a business (franchisor) allows a party (franchisee) to acquire its know-how, procedures, processes, trademarks, intellectual property, use of its business… 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 It’s a type of franchise where there the main franchise gives a territory or franchise license to another enterprise to allow them to be…, other regional master franchises information could be different.
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 Is a fee that franchisees pay to franchisors when signing an agreement, for establishing a franchise relationship, and getting some initial services. It is… | $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 AFN = Projected increase in assets spontaneous increase in liabilities any increase in retained earnings Known as AFN or additional funds needed It is… (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 One of the major financial statements focused on a business’s revenues and expenses in a particular period. It is also known as the profit…:
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 A franchise is when a business (franchisor) allows a party (franchisee) to acquire its know-how, procedures, processes, trademarks, intellectual property, use of its business… fee revenues: | |
| Interest A payment from a borrower or deposit-taking financial institution to a lender or depositor of an amount above repayment of the principal sum, at… on financing | $7,085 |
| Franchise feesThe initial franchise fee is a fee that the franchisor charges you so you have the right to use its logo, brand name, products, and… | 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 The total amount in dollars made in the business before expenses are deducted. See also Gross Revenue. | (93,846) |
| Net supply revenue | 2,434 |
| Total revenue | 685,795 |
| Operating expenses An operating expense is an expense a business incurs through its normal business operations. Often abbreviated as OPEX, operating expenses include rent, equipment, inventory…: | |
| Corporate royalties Fees paid by a franchisee to their franchisor in order to operate a franchise location. They are usually on a weekly or monthly basis. | 86,726 |
| Payroll and related expenses | 231,274 |
| Occupancy | 32,053 |
| Selling, general and administrative | 140,519 |
| Total operating expenses | 490,572 |
| Income Income, also known as earnings or profits, is money that a person or a business receives in return for working, providing a product or… from operations | 195,223 |
| Other expenses: | |
| Depreciation A reduction in the value of an asset over time, due to wear and tear. and amortization The term œamortization? refers to: • In accounting, Amortization is very similar to depreciation, it’s a decrease in the value of an intangible asset, which… | 57,516 |
| Total other expenses | 57,516 |
| Net income | 137,707 |
| Retained earnings Total earnings received by a business based on the U.S. Income Tax Return. The financial numbers of these earnings depend on the type of…, beginning | |
| Distribution | (60,000) |
| Retained earnings, ending | 77,707 |
Income Statement Highlights
JAN-PRO of Central Indiana posted a Net Income Income, also known as earnings or profits, is money that a person or a business receives in return for working, providing a product or… of $138k in 2019. The company distributed $60k of these profits and ended the year with retained earnings Total earnings received by a business based on the U.S. Income Tax Return. The financial numbers of these earnings depend on the type of… of $78k.
It had $682k of revenue from their 59 locations, and 17 of these locations were opened in that fiscal year.
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 A franchise is when a business (franchisor) allows a party (franchisee) to acquire its know-how, procedures, processes, trademarks, intellectual property, use of its business… in a very established The year a Business for Sale was established. If the business has been running for a minimum of ten years, Vetted Biz will qualify… 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 Having put someone or something through a careful examination. At Vetted Biz, we put franchises and businesses through a careful examination and benchmarking of… Biz and in the Cleaning and Maintenance Industry A particular form or branch of economic or commercial activity. Subindustries are often referred to as categories on Vettedbiz.com.
