Jan-Pro Franchise Cost & Fees

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Description

Year Business Began: 1991Franchising Since: 1992Headquarters: Alpharetta, GeorgiaEstimated Number of Units: 8,485Franchise Description: The franchisor, Jan-Pro Franchising International, Inc., has developed a system to independently own and operate a comprehensive cleaning and maintenance business that performs commercial janitorial and related services under the service mark Jan-Pro and other trademarks, trade names, service marks, slogans and logos that it may authorize from time to time. The franchisor offers franchises, typically through a regional franchisor, to independently own and operate a cleaning and maintenance business that performs commercial, industrial, and institutional cleaning and maintenance services under the service mark Jan-Pro and other trademarks, trade names, service marks, slogans and logos it authorizes.Training Overview: The franchisor will provide the Certification Program for up to four approved people for no charge, but may charge a reasonable fee for additional people that attend the Certification Program. The Certification Program includes video, classroom, and on-site expert consultation. Franchisees must attend, or cause one of their managerial personnel (satisfactory to the franchisor) to attend, and successfully complete the Certification Program as well as any other seminars, sessions, programs, consultations, and advanced instructional modules that the franchisor deems necessary. The franchisor may provide additional personal consultations, if the franchisor can reasonably accommodate the franchisee’s request to do so. Territory Granted: Franchisees will not receive an exclusive territory. Franchisees may face competition from other franchisees, from outlets that the franchisor owns, or from other channels of distribution or competitive brands that the franchisor controls. The regional franchisor may offer franchisees an Initial Plan, which consists of offering them accounts for customers in the area it oversees.Obligations and Restrictions: The franchisor requires that franchisees have at least one person actively involved in the management of the franchise, who may be the owner of an entity-franchisee or a manager the franchisee has selected (or who has been selected by the owners of an entity-franchisee). The manager and managerial employees must sign the form of confidentiality and non-competition agreement. Franchisees must offer for sale all approved services and products for which they have been certified and for which they have all necessary equipment. Franchisees must not deviate from the franchisor’s specifications for the approved services and products with the franchisor’s written consent; and must discontinue offering any services or products that it disapproves in writing.Term of Agreement and Renewal: The length of the initial franchise term is 10 years. Franchisees may renew their franchise for two additional 10-year periods if they satisfy the conditions in the Franchise Agreement.Financial Assistance: The franchisor may finance a portion of the Initial Franchise Fee for qualified franchisees. The franchisor may also finance a portion of the Sales and Marketing Fee if the franchisee accepts Additional Accounts from it. The franchisor offers no other financing. In addition, to provide support to past veterans and current veterans being released from active service, Jan-Pro offers all qualifying veterans financing of 50% of the Initial Franchise Fee for all Initial Plans FP 20 and above. Investment Tables: Estimated Initial Investment Name of Fee Low High Initial Franchise Fee $3,150 $60,000 Travel And Living Expenses While Training $50 $300 Office and Related Expenses $150 $550 Vehicle $0 $500 Real Estate $0 $550 Floor Buffing Machine $25 $900 Carpet Cleaning Machine $25 $1,500 Insurance $15 $325 Legal & Organizational Costs $50 $680 Mediation/Arbitration Waiver Fee $0 $500 Additional Funds for 3 Months $150 $550 Estimated Total Initial Investment $3,615 $66,355 Other Fees Type of Fee Amount Royalty Fee 10% of Gross Billings for the previous month. Support Fee 5% of Gross Billings for the previous month. Administrative Fee 10% of Special Services Billings for the previous month. Negotiation Fee The first month’s Gross Billings under a Negotiated Contract Complaint Fee or Standards Violation Fee and Service Fee $50 for the Complaint or Standards Violation Fee;$50 per person an hour, plus expenses (including materials, supplies, and equipment) for the Service Fee National Accounts Support Fee 1% of Gross Billings from National Accounts for the previous month. Substitution Fee The customer’s payments for the substituted services. Renewal Fee $2,000 Transfer Fee The lesser of: $2,000 or 8% of the total actual Gross Billings for the 12 full calendar months before the transfer. Advances Amount of the uncollected Advance. Advance Assurance Fee 1% of Gross Billings for the previous month. Key Return Fee $500 for each day that the franchisee does not return customer keys. Replacement Manager Training Fee $250 Interest The lesser of: (i) 18% per annum; or (ii) the maximum rate of interest permitted by law. Business Protection Program Amount of the premium, fees payable to the franchisor for administering program, and other related and incidental costs. Default Collection Expenses The franchisor’s costs. Indemnification All amounts the franchisor has to pay. Reimbursement for Performing Franchisee’s Obligations Amount the franchisor pays, plus interest at the Contract Interest Rate beginning on the 10th day after the franchisor requests reimbursement. Lost Manual Fee $200 for each replaced Manual. Testing Fee The reasonable cost of the inspection and the actual cost of the testing. Collection Costs The franchisor’s out-of-pocket costs (including, attorney’s fees and court costs) Insurance The cost of the insurance, plus interest at the Contract Interest Rate, plus a reasonable fee for the franchisor’s expenses. Liquidated Damages The total of all Royalty Fees and Support Fees for the lost Customers for 12 months. The above information has been taken from the FDD of Jan-Pro (of Milwaukee). Year of FDD: 2018Franchise Direct’s Disclaimer

Other Fees
Type of Fee Amount
Royalty Fee 10% of Gross Billings for the previous month.
Support Fee 5% of Gross Billings for the previous month.
Administrative Fee 10% of Special Services Billings for the previous month.
Negotiation Fee The first month’s Gross Billings under a Negotiated Contract
Complaint Fee or Standards Violation Fee and Service Fee $50 for the Complaint or Standards Violation Fee;
$50 per person an hour, plus expenses (including materials, supplies, and equipment) for the Service Fee
National Accounts Support Fee 1% of Gross Billings from National Accounts for the previous month.
Substitution Fee The customer’s payments for the substituted services.
Renewal Fee $2,000
Transfer Fee The lesser of: $2,000 or 8% of the total actual Gross Billings for the 12 full calendar months before the transfer.
Advances Amount of the uncollected Advance.
Advance Assurance Fee 1% of Gross Billings for the previous month.
Key Return Fee $500 for each day that the franchisee does not return customer keys.
Replacement Manager Training Fee $250
Interest The lesser of: (i) 18% per annum; or (ii) the maximum rate of interest permitted by law.
Business Protection Program Amount of the premium, fees payable to the franchisor for administering program, and other related and incidental costs.
Default Collection Expenses The franchisor’s costs.
Indemnification All amounts the franchisor has to pay.
Reimbursement for Performing Franchisee’s Obligations Amount the franchisor pays, plus interest at the Contract Interest Rate beginning on the 10th day after the franchisor requests reimbursement.
Lost Manual Fee $200 for each replaced Manual.
Testing Fee The reasonable cost of the inspection and the actual cost of the testing.
Collection Costs The franchisor’s out-of-pocket costs (including, attorney’s fees and court costs)
Insurance The cost of the insurance, plus interest at the Contract Interest Rate, plus a reasonable fee for the franchisor’s expenses.
Liquidated Damages The total of all Royalty Fees and Support Fees for the lost Customers for 12 months.