Jani-King Franchise Cost & Fees

SKU: e9787f894668 Category: Tag:

Description

Year Business Began: 1969Franchising Since: 1974Headquarters: Addison, TexasEstimated Number of Units: 9,000Franchise Description: The franchisor, Jani-King Franchising, Inc. (JKF), is in the business of franchising comprehensive commercial cleaning and maintenance businesses. The franchise is for a business that will sell and support franchise businesses that will, in turn, provide comprehensive, commercial cleaning and maintenance services. JKF is a wholly owned subsidiary of Jani-King International, Inc. The franchise granted, sometimes through regional franchisors (subfranchisors), is for the performance of complete cleaning and/or maintenance related services, including commercial, industrial, institutional cleaning and/or maintenance services, and the distribution of related supplies and equipment under the name Jani-King. The type of services franchisees will be offered to provide include carpet cleaning, hard floor care, trash disposal, window washing, wall cleaning, and other specialty cleaning services on a daily, weekly, or monthly schedule.Training Overview: The franchisor will provide initial training on the operation of the franchise business to franchisees, and franchisees must attend and complete, to the franchisor’s satisfaction, our initial training program within six months after the signing of the Franchise Agreement. Training is conducted at a local regional office and one or more designated local customer locations. The training program offered generally will consist of at least eight training sessions, held usually in the evenings and on weekends over a two-week period, and includes approximately 40 hours of instruction including self-study. The franchisor will provide additional training, seminars and refresher courses to franchisees that franchisees may attend at their option, but except in the case where they had an account transfer or cancel due to improper operation of their franchise, attendance is not required.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 owns or controls. Regional franchisors may offer the right for franchisees to provide services under their Agreement in a specific, non-exclusive, geographical territory. In these cases, franchisees must not knowingly interfere, solicit, or otherwise contact in any manner a current customer or prospect of another Jani-King franchisee of a regional office, unless the regional franchisor requests in writing that they do so.Obligations and Restrictions: Franchisees must participate personally in the direct operation of the franchise business. Franchisees must be directly involved in the day-to-day operations. The franchisee’s franchise will be responsible for the services performed at the customer locations where that franchisee provides service, and that franchisee must provide all labor, materials, tools and supplies necessary to service those premises. Franchisees must offer for sale all types of products, and perform all services, that the franchisor requires for Jani-King businesses. Franchisees may not offer for sale any types of products or perform any services that have not been authorized. Franchisees are limited in the operation of the franchise business to the offering of cleaning services and supplies to the public. The franchisor also designates some goods and services as optional for qualified franchisees. The franchisor may require special training and certification before it will allow franchisees to offer these goods and services.Term of Agreement and Renewal: The length of the franchise term is 10 years. If franchisees are in good standing, they can renew or extend the term on the franchisor’s then current terms for three additional 10-year periods.Financial Assistance: The franchisor does not offer financing for the Initial Franchise Fee. It does offer an equipment lease through an affiliate. The affiliate, LEASING, provides lease arrangements for most of the equipment franchisees will use in their franchise. LEASING determines all the terms and conditions of the leases offered by them, and they may be modified or changed without consent from the franchisor. Other financing options may be available depending on the region the franchise will be located. Investment Tables: Estimated Initial Investment Name of Fee Low High Initial Franchise Fee $9,000 $195,500 Real Estate $0 $5,000 Supplies $600 $840 Equipment $1,845 $5,814 Security deposits, etc. $100 $1,000 Business Entity Establishment Fees $100 $1,000 Additional Funds (For initial 120 day period) $800 $8,500 ESTIMATED TOTAL $12,445 $217,614 Other Fees Type of Fee Amount Contract Service and Sales Royalty 10% of monthly Gross Revenue. Accounting and Sales Fee Currently 7% of monthly Gross Revenue, but may be increased or decreased depending on monthly Gross Revenue achieved. Business Protection Plan (Optional) 4% of monthly Gross Revenue Equipment Lease Payments (Optional) Varies, depends on equipment leased, if any Charge Back Varies, depending on outstanding receivables Operations Assistance/Complaint $50 Service Currently $25 per labor hour plus expenses; may charge up to $50 per hour Advertising Currently 1.5% but may be increased to up to 2.5% of monthly Gross Revenues Technology Fee 1% of monthly Gross Revenue. Additional Training $50/hour plus expenses. Transfer of Franchise The greater of $2,000 or 10% of the sales price or exchanged value Administrative $250 Liquidated Damages $500/day Costs and Attorneys’ Fees Will vary under circumstances. Non-Reported Business Fee $25 per day. Indemnification Will vary under circumstances. Audit All costs and expenses, for example, reasonable accounting and attorney fees Replacement of Manual $25 per copy per manual The above information has been taken from the FDD of Jani-King (of Milwaukee). Year of FDD: 2018Franchise Direct’s Disclaimer

Other Fees
Type of Fee Amount
Contract Service and Sales Royalty 10% of monthly Gross Revenue.
Accounting and Sales Fee Currently 7% of monthly Gross Revenue, but may be increased or decreased depending on monthly Gross Revenue achieved.
Business Protection Plan (Optional) 4% of monthly Gross Revenue
Equipment Lease Payments (Optional) Varies, depends on equipment leased, if any
Charge Back Varies, depending on outstanding receivables
Operations Assistance/Complaint $50
Service Currently $25 per labor hour plus expenses; may charge up to $50 per hour
Advertising Currently 1.5% but may be increased to up to 2.5% of monthly Gross Revenues
Technology Fee 1% of monthly Gross Revenue.
Additional Training $50/hour plus expenses.
Transfer of Franchise The greater of $2,000 or 10% of the sales price or exchanged value
Administrative $250
Liquidated Damages $500/day
Costs and Attorneys’ Fees Will vary under circumstances.
Non-Reported Business Fee $25 per day.
Indemnification Will vary under circumstances.
Audit All costs and expenses, for example, reasonable accounting and attorney fees
Replacement of Manual $25 per copy per manual