Jani King Franchise in 2024: Costs, Fee & FDD
Discover the investment potential of Jani-King, one of the world’s largest commercial cleaning franchises. Learn about startup costs, support systems, and market demand to decide if this established brand aligns with your business goals.
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Jani-King, founded in 1969 by Jim Cavanaugh, is a global leader in the commercial cleaning industry. Originally established to revolutionize janitorial services, the brand has grown into one of the most recognized names in cleaning franchises, offering entrepreneurs a proven system for success. With a focus on customer satisfaction and cutting-edge cleaning techniques, Jani-King has carved a significant niche in a competitive industry.
At its core, Jani-King provides comprehensive commercial cleaning services tailored to a wide range of industries, including healthcare, education, hospitality, office spaces, and retail. Franchisees deliver services such as carpet care, restroom sanitation, floor maintenance, and disinfecting, addressing the growing demand for professional cleaning. The franchise is built on creating strong relationships with businesses that prioritize cleanliness, appealing to organizations that rely on consistent and reliable janitorial services.
Today, Jani-King boasts a robust global presence with over 9,000 franchise units spanning 10 countries. It serves thousands of clients daily, leveraging its well-established brand reputation to secure contracts with prestigious clients such as hotels, sports venues, and medical facilities. This expansive reach ensures that franchisees benefit from a diverse market and numerous revenue streams.
Franchisees with Jani-King receive comprehensive support, from initial training in cleaning techniques and business management to ongoing assistance with client acquisition and operations. The franchise also provides marketing resources, administrative support, and access to proprietary cleaning technologies, ensuring that franchise owners are well-equipped to succeed. With its strong franchisee-focused model and decades of experience, Jani-King remains a top contender for those seeking a low-cost, service-based franchise opportunity.
Jani-King Franchise Insights
- Jani-King has nearly 5,000 U.S. locations, with 4,980 franchised units and only 12 corporate-owned, demonstrating a franchise-heavy model that emphasizes franchisee success.
- Jani-King serves a wide variety of high-demand sectors, including healthcare, hospitality, and education, providing franchisees with diverse revenue streams and stable client contracts.
- Jani-King started offering franchises in 2003 and continues to provide strong franchise support, but it does not currently disclose Item 19 financials, which may limit available financial performance data for prospective franchisees.
- The franchise has been in operation since 1969, making it one of the most experienced brands in the commercial cleaning industry, giving franchisees the backing of a long-established system.
Jani-King Franchise Key indicators
Growth YOY (%)
-6%
vs industry 4%
Total U.S. Franchised Units
4,980
3-Year Failure Rate
29%
vs industry 13%
How much does it cost to open a Jani-King franchise?
Understanding the potential investment size and capital requirements is crucial when considering opening a Jani-King franchise. These financial commitments, including initial franchise fees, equipment costs, and ongoing operational expenses, impact the feasibility and profitability of the venture. Thoroughly evaluating these factors ensures that potential franchisees are prepared for the financial responsibilities and can make informed decisions about their ability to sustain and grow the business, ultimately contributing to long-term success.
Min & Max Investment
Opening a Jani-King franchise involves several key costs, which are outlined in Item 7 of the Franchise Disclosure Document (FDD). you can see a breakdown of the costs to open a Jani-King below from the most recent Item 7 below:
| Type of Expenditure | Minimum Investment | Maximum Investment |
|---|---|---|
| Initial Franchise Fee | $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 (120 days) | $800 | $8,500 |
| TOTAL | $10,500 | $223,050 |
Item 7 in the Franchise Disclosure Document (FDD) is the “Estimated Initial Investment” section. It outlines the total costs a franchisee can expect to incur when starting a franchise, including the initial franchise fee, equipment, inventory, real estate, and other startup expenses. This section is crucial because it provides potential franchisees with a detailed understanding of the financial commitment required, helping them assess affordability and plan their investment strategy effectively.
Required Capital
To open a Jani-King franchise, the required capital involves both the initial investment costs and a net worth requirement set by Jani-King. Let’s take a closer look below:
- Initial Investment As shown above, the total estimated initial investment ranges from $10,500 to $223,050. This includes all the startup costs such as the franchise fee, real estate, construction, equipment, initial inventory, and additional funds for initial operating expenses. Assuming that you will finance your franchise investment, you should plan to have 20% of the total investment amount in the form of equity (cash) for the investment.
- Liquid Assets Many franchises in the commercial cleaning industry typically require liquid assets of approximately $20,000 to $50,000 to ensure franchisees have enough cash on hand for initial and ongoing expenses. This is an estimate, as specific liquid asset requirements for Jani-King aren’t provided here.
- Net Worth Similar franchises often require a net worth between $100,000 and $300,000, providing a financial buffer for the franchisee and franchisor.
How much does a Jani-King franchise owner make?
Calculating the salary of a Jani-King franchise owner involves analyzing gross sales to determine total revenue, assessing operational efficiency to understand profit margins, and accounting for franchisor fees and additional expenses such as rent, utilities, and payroll. Effective management of these factors can significantly impact the profitability and financial success of a Jani-King franchise owner. This comprehensive financial analysis helps estimate net profits, from which the owner’s salary can be derived. A clear understanding of these factors ensures accurate salary projections and financial planning for sustainable business operations.
Jani-King Revenue & Gross Sales
Jani-King does not publicly disclose recent median gross sales. However, as a longstanding leader in the commercial cleaning industry, Jani-King franchisees can potentially benefit from stable demand, given the essential nature of cleaning services across industries like healthcare, hospitality, and office buildings. The franchise’s strong brand reputation and established client relationships often translate to a steady revenue stream for franchisees, though actual performance can vary based on location, market demand, and operational efficiency.
Which key factors impact the average revenue performance of Jani-King franchisees?
The performance of Jani-King U.S. franchisee median gross sales over the past year may have been influenced by several key factors. First, increased awareness and prioritization of hygiene and cleanliness across sectors—especially in healthcare, hospitality, and office spaces—likely boosted demand for reliable commercial cleaning services. Additionally, the franchise’s established reputation may have attracted new contracts as businesses sought trusted providers. On the other hand, rising costs for labor and cleaning supplies may have impacted profitability for franchisees, even with steady sales growth. Jani-King’s strong brand presence and diversified client base, however, continue to provide a solid foundation for consistent performance.
Jani-King Franchise Operational Costs
Here are key ongoing operational costs to consider for a Jani-King franchise:
- Labor Costs Wages, benefits, and payroll taxes for cleaning staff, which can vary depending on minimum wage requirements and employee turnover rates.
- Cleaning Supplies and Equipment Regular expenses for cleaning chemicals, disinfectants, mops, vacuums, and other equipment, with costs fluctuating based on supplier pricing and frequency of use.
- Transportation Costs related to transporting cleaning teams and equipment to client locations, including fuel, vehicle maintenance, and, if applicable, leasing of company vehicles.
- Insurance Liability insurance, workers’ compensation, and other necessary coverage to protect the business and employees.
- Uniforms and Branding Expenses for employee uniforms, ID badges, and branded materials, which help reinforce the franchise’s professional image with clients.
These costs may vary based on location, client volume, and the scale of operations.
Jani-King Franchise Fees
When considering a Jani-King franchise, it’s essential to be aware of ongoing fees that impact monthly operational expenses. Here are some relevant fees:
- Royalty Fee 10% of monthly gross revenue, with a minimum of $100 for the first 12 months and then $500 monthly, adjusted based on the Consumer Price Index.
- Accounting and Sales Fee 7% of monthly gross revenue, covering monthly revenue and expense accounting services provided by the franchisor.
- Advertising Fee Currently 1.5% of monthly gross revenue, which may increase up to 2.5%, supporting advertising and marketing initiatives to boost brand visibility.
There might also be additional fees depending on specific circumstances outlined in the franchise agreement.
Jani-King Franchise Earnings
Jani-King does not provide specific data on median gross sales or earnings. However, as one of the largest and most established commercial cleaning franchises, Jani-King has a strong client base and steady demand across industries like healthcare, hospitality, and office buildings. This provides a solid foundation for franchisees, especially those who actively manage and expand their client relationships.
For owner-operators, earnings potential can vary widely depending on factors such as local demand, the number of client contracts, operational efficiency, and cost management. Typically, commercial cleaning businesses benefit from recurring revenue streams through ongoing service contracts, offering consistent income opportunities. By actively managing expenses, such as labor and supplies, and maintaining strong client relationships, a Jani-King franchisee can achieve steady growth and potentially attractive returns in a well-managed operation.
How to Open a Jani-King Franchise
Becoming a Jani-King franchisee is a rigorous process that involves financial scrutiny, extensive training, and thorough evaluation. However, it offers the potential for a lucrative business opportunity backed by a globally recognized brand and comprehensive support system.
The full process for how to open a Jani-King franchise is outlined below:
- Initial Inquiry You or your franchise specialist submits an initial inquiry basic information about your interest and background. You should also conduct thorough research on the franchise, including seeing all of the information available on the Vetted Biz franchise intelligence platform, including access to the most recent Franchise Disclosure Document (FDD).
- Franchise Application After the initial inquiry, you’ll complete a detailed franchise application. This form provides insight into your financial qualifications and business experience, helping the franchise team assess your suitability.
- Interview and Approval Jani-King’s team may conduct an interview to discuss your goals, answer questions, and ensure alignment. If both parties agree to move forward, they’ll formally approve you as a potential franchisee.
- Signing the Franchise Agreement You’ll sign the franchise agreement and pay the initial franchise fee, formalizing your entry into the Jani-King franchise system.
- Training Program Jani-King provides a comprehensive training program that covers cleaning techniques, business management, customer service, and sales. This training ensures you’re prepared to operate your business confidently.
- Securing Initial Clients Jani-King assists with client acquisition, helping you secure initial contracts and establish a base of recurring business. This unique support gives franchisees a jumpstart with established client relationships.
- Pre-Opening Preparations You’ll finalize necessary preparations, including equipment and supply procurement, employee hiring, and any required local licenses or permits.
- Start of Operations With everything in place, you’ll officially begin operations, delivering cleaning services to clients. Jani-King’s support continues with ongoing guidance to help you grow and succeed.
Pros & Cons
Pros
Established Brand: With over 50 years in the industry, Jani-King is one of the most recognized names in commercial cleaning, which can help franchisees attract clients quickly.
Recurring Revenue Model: Jani-King’s business model focuses on long-term client contracts, providing franchisees with a stable, recurring revenue stream.
Growing Demand for Cleaning Services: The commercial cleaning industry is expected to grow, driven by an increased focus on hygiene and cleanliness, making this a potentially stable sector for investment.
Cons
High Royalty and Fees: Jani-King charges a 10% royalty fee and a 7% accounting and sales fee, which can impact profit margins, especially for new franchisees.
Limited Financial Transparency: Jani-King does not provide Item 19 financial disclosures in its FDD, making it challenging for prospective franchisees to gauge potential earnings and profitability.
Hands-On Management: Running a commercial cleaning business may require significant involvement in managing employees and ensuring service quality, which may not appeal to investors looking for a passive income model.
High 3-Year Failure Rate: The franchise has a 3-year failure rate of 29%, which may indicate challenges for new franchisees in achieving long-term success and stability.
