Jan-Pro are a franchised cleaning and janitorial services organization. They claim to be North America’s #1 commercial cleaning business.
Jan-Pro was founded in 1991 and they have offered franchise opportunities since 1992. They are headquartered in Alpharetta, Georgia. The company primarily provides cleaning and disinfecting services to institutional, industrial and other commercial customers.
Jan-Pro at a glance:
With a minimum investment of less than $5k, no liquid cash or net worth requirements and no need for previous commercial experience, a Jan-Pro franchise must be one of the easiest businesses to get up and running. Many Jan-Pro franchisees operate as small, family or even single-person operations, (although you can buy a Regional Developer/Master Franchisee and have many single-unit operators under your wing and paying you each month). Jan-Pro says you can run this business and still keep your day job, so it could work well as a semi-passive investment or as a side hustle to bring in extra income.
Certainly one of the more affordable business opportunities, the set-up costs for a single Jan-Pro franchise range from $4,900 up to $78,100 depending on the size of your operating territory. This cost ranks as very low.
The franchise fee ranges from $2,520 up to $60,000. Military veterans may be eligible for 24 months interest-free financing to cover 50% of this and other franchise costs.
After opening, you are required to pay an array of ongoing fees and charges. They include:
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| Key Costs Guide | Low | High |
|---|---|---|
| Franchise fee | $2,520 | $60,000 |
| Training expenses | $50 | $300 |
| Office and related expenses | $150 | $550 |
| Vehicle | $0 | $500 |
| Initial equipment package | $950 | $950 |
| Real estate | $0 | $550 |
| Electrostatic sprayer machine | $750 | $1,500 |
| Floor buffing machine | $50 | $1,300 |
| Carpet cleaning machine | $50 | $4,400 |
| Signage and drive-thru | $0 | $186,000 |
| Insurance | $200 | $620 |
| Legal and organizational costs | $50 | $2,000 |
| Additional costs – first three months | $150 | $550 |
Yes, although you will generate far greater profits as a Regional Developer/Master Franchise holder than as a single-unit operator. Master Franchise holders receive income from single-unit operators when they award a franchise, plus monthly support fees, royalties, insurance fees and supply fees. Master Franchisees can expect a median annual gross income of $1,275,000, while single unit operators typically make $76,000 per year.
The failure rate for a single-unit Jan-Pro franchise is 13% in year one, rising to 34% by year three. This ranks as high to very high.
Franchisees do not receive an exclusive territory. They may face competition from other franchisees, from outlets that the franchisor owns, or from other channels of distribution or competitive brands that Jan-Pro controls. Regional developer/master franchisees may offer single unit franchisees an ‘Initial Plan’ which consists of potential business customers in the area it oversees.
Jan-Pro support for franchisees includes:
It depends what sort of franchisee you are. If you’re a single-unit operator, you can make acceptable income, but you’re never going to get rich. To do that, you need to buy a much more expensive Master Franchise (cost up to $600k) where you can make money by selling franchisee licenses to single-unit operators and taking a cut of their monthly income. The more single-unit operators you have in your region, the more you can make – gross income of more than $5 million per year has been quoted. For small operators, you can benefit from low start-up costs, a major brand name and a regional franchisee who finds new business for you.
However, Jan-Pro royalty fees are some of the highest in Canada franchise market and the failure rate for mom and pop Jan-Pro cleaning businesses is troubling. One third of single-unit operators do not make it past year three.
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Chris is a freelance copywriter and content creator. He has been active in the marketing, advertising, and publishing industries for more than twenty-five years. Writing for Barclays Bank, Metro Bank, Wells Fargo, ABN Amro, Quidco, Legal and General, Inshur Zego, AIG, Met Life, State Farm, Direct Line, insurers and pension funds, his words have appeared online and in print to inform, entertain and explain the complex world of consumer and business finance and insurance.
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