Jan-Pro franchise

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Jan-Pro are a franchised cleaning and janitorial services organization. They claim to be North America’s #1 commercial cleaning business and the leader in a US market worth $96 billion per year. 

Jan-Pro business details

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 has more than 8,000 franchised operators in the US and +2,000 more in overseas markets that include Canada, Brazil, Mexico and Australia. 

Jan-Pro at a glance:

  • US stores: Approximately 8000
  • Required Investor net worth: not stated
  • Required investor liquid cash: not stated
  • Min. investment: $4,900
  • Max. investment: $78,100
  • Standard franchise term: 10 years

Can I start a Jan-Pro franchise?

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. 

How much does a Jan-Pro franchise cost?

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:

  • Royalty fee: 13% of monthly gross sales
  • Support fee: 3% of monthly gross sales
  • Admin fee for special services: 10% of monthly gross sales 
  • Advertising fee: Up to 1% of monthly gross sales
  • Technology fee: Up to $60 per month
  • Complaint resolution charge: $50 per complaint, plus reimbursement to customer, plus 20% fee
  • National accounts support fee: 1% of monthly sales to national accounts
  • Renewal fee: $750
  • Transfer fee: Greater of $1,000 or 8% of last 12 months gross sales
  • Advance assurance fee: 2% of monthly gross sales
  • Key return fee: $500 per day for every day franchisee fails to return customer keys
  • Insurance review: $200
  • Insurance admin fee: Up to $50 per month
  • Lost manual fee: $200 for each lost manual

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Estimated key costs to open a Jan-Pro franchise (single-unit operator):

Key Costs GuideLowHigh
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

Are Jan-Pro franchises profitable?

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, whilst single unit operators typically make $76,000 per year.

What is the failure rate for a Jan-Pro franchise?

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.

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What are the franchise territory policies for Jan-Pro?

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.

What franchise resources does Jan-Pro offer?

Jan-Pro support for franchisees includes:

  • Training: Franchisees or their designated manager must take the Jan-Pro Certification Program before opening their store. The program includes video, classroom, and on-site consultation. Franchisees or their managerial personnel must successfully complete the Certification Program as well as any other seminars, sessions, programs, consultations, and advanced instructional modules that the franchisor deems necessary or required. Additional personal consultations may be provided, if the franchisee’s request to do so can be reasonably accommodated.
  • Marketing support: Jan-Pro provides promotional and other marketing support for their franchisees.
  • Third-party financing: Jan-Pro provides limited financial support for investors seeking franchise funding. You may also be able to obtain economical and flexible funding solutions from the many independent funders who provide business loans to franchise operators.

Why should you start a Jan-Pro franchise?

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 the US 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.

What is the process for starting a Jan-Pro franchise?

It begins with an application. Start the process here.

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Starting a new franchise can be an exciting opportunity, but it’s easy to get lost in a maze of business loan applications that can make funding your new cleaning business like too much hard work. Instead, cut out the hassle and cut to the chase. Swoop has the best lenders for the best franchises across the US. Just tell us what you need and leave the rest to us.

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Testimonials

Written by

Chris Godfrey

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 Wells Fargo Bank, Visa, Experian, Ebay, Flywire, insurers and pension funds, his words have appeared online and in print to inform, entertain and explain the complex world of US consumer and business finance.

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At Swoop we want to make it easy for SMEs to understand the sometimes overwhelming world of business finance and insurance. Our goal is simple – to distill complex topics, unravel jargon, offer transparent and impartial information, and empower businesses to make smart financial decisions with confidence.

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Article sources
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Swoop requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate.

Franchise funding: https://swoopfunding.com/us/blog/funding-your-franchise-a-guide-for-franchisees/

Profitability: https://www.quora.com/What-are-the-pros-and-cons-of-owning-a-Jan-Pro-franchise

Jan-Pro franchise application: https://jan-pro.com/franchising/

Jan-Pro: https://jan-pro.com/franchising/

Failure rate: https://www.vettedbiz.com/franchises/jan-pro/

Set-up costs: https://www.franchisedirect.com/cleaningfranchises/jan-pro-cleaning-systems-franchise-01632/ufoc/

US market: https://www.grandviewresearch.com/industry-analysis/us-contract-cleaning-services-market-report

Master franchise holders: https://jan-pro.com/victoriabc/franchising/franchisingmasterfranchiser/

Master franchise income: https://www.vettedbiz.com/cleaning-franchise-jan-pro-master-review-2020-fdd/

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