In this exclusive Franchise Chatter FDD Talk post, you’ll learn the following:
Section I – Estimated initial investment (franchise costs) for a Jan-Pro regional developer franchise, based on Item 7 of the company’s 2023 FDD
Section II – Initial franchise fee, royalty fee, and marketing fee for a Jan-Pro regional developer franchise, based on Items 5 and 6 of the company’s 2023 FDD
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Section IV – News updates on the Jan-Pro regional developer franchise opportunity
Section V – Presentation and analysis of Jan-Pro’s financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2023 FDD, including information on the:
- fiscal year 2022 average, median, highest, and lowest gross contract revenue for the top third, middle third, bottom third, and all 112 Jan-Pro regional franchise developers who were in operation in the United States and Canada as of September 30, 2022 and did not commence operations during the fiscal year ended September 30, 2022
- fiscal year 2022 average, median, highest, and lowest gross contract revenue by vintage (1-5 years, 5-10 years, 10-15 years, 15-20 years, 20+ years) for the 112 Jan-Pro regional franchise developers who were in operation in the United States and Canada as of September 30, 2022 and did not commence operations during the fiscal year ended September 30, 2022
- 2021 average, median, highest, and lowest gross revenue for the top third, middle third, bottom third, and all 59 Jan-Pro regional franchise developers who provided detailed financial statements for the calendar year ending December 31, 2021
- 2021 average, median, highest, and lowest payroll costs as a percentage of gross revenue, occupancy costs as a percentage of gross revenue, and selling, general & administrative expenses as a percentage of gross revenue for the top third, middle third, bottom third, and all 56 Jan-Pro regional franchise developers who reported detailed expense categories for the calendar year ending December 31, 2021
Section VI – Key ratios, comparables, computations, and analyses for the Jan-Pro regional developer franchise opportunity (exclusive content for Platinum subscribers)
Section I – Jan-Pro Regional Developer Franchise Costs
- Jan-Pro regional developer franchise costs, based on Item 7 of the company’s 2023 FDD:
- Initial Franchise Fee: $50,000 to $600,000
- Real Estate: $1,500 to $5,000
- Initial Supplies: $1,500 to $2,000
- Equipment and Office Furniture: $10,000 to $25,000
- Business Licenses & Permits, Deposits, and Other Prepaid Expenses: $1,000 to $4,000
- Insurance: $1,000 to $3,000
- Certification: $3,000 to $5,000
- Legal Fees and Registration Expenses: $1,500 to $10,000
- Computer Hardware and Software Licensing: $5,000 to $10,000
- Initial Advertising Expenses: $3,000 to $5,000
- Additional Funds – 3 Months: $50,000 to $100,000
- Total Estimated Jan-Pro Regional Developer Franchise Costs: $127,500 to $769,000
Section II – Jan-Pro’s Initial Franchise Fee, Royalty Fee, and Marketing Fee
- Jan-Pro’s initial franchise fee, royalty fee, and marketing fee, based on Items 5 and 6 of the company’s 2023 FDD:
- Initial Franchise Fee: $50,000 to $600,000
- Contract Services Royalty Fee: 4% of Gross Monthly Revenue
- Sales Royalty Fee: 10% of (i) the total initial franchise fees for Unit Franchises; (ii) upgrade fees for additional customer accounts; (iii) transfer fees for the transfer of a Unit Franchise; and (iv) all principal and interest collected during the previous calendar month
- Advertising Fee: currently, contributions are the lesser of 0.5% of Gross Monthly Revenue or $3,500 per month. Notwithstanding the foregoing, the minimum monthly contribution is $450 per month.
- Local and Regional Advertising Cooperatives: established by cooperative members
Section III – Number of Franchised and Company-Owned Jan-Pro Regional Developer Outlets
Franchised
2020
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- Outlets at the End of the Year: 96
- Net Change: 0
2021
- Outlets at the Start of the Year: 96
- Outlets at the End of the Year: 99
- Net Change: +3
2022
- Outlets at the Start of the Year: 99
- Outlets at the End of the Year: 103
- Net Change: +4
Company-Owned
2020
- Outlets at the Start of the Year: 0
- Outlets at the End of the Year: 0
- Net Change: 0
2021
- Outlets at the Start of the Year: 0
- Outlets at the End of the Year: 0
- Net Change: 0
2022
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When I owned a UPS Store, I learned firsthand how much your ZIP code shapes your outcome. I sold my store at a premium because my territory was in a high-value area. The best areas go first, and once they're gone, they're gone. Enter your ZIP code, and a territory specialist will walk you through the franchises still available near you, drawing on information that isn't publicly accessible, saving you months of wasted research.📈Dreaming of Multi‑Unit Success? Lock In Prime Territories Before They're Gone.
Colin started as a team member at 21 and now owns 6 locations in Tampa Bay. Lisa came from marketing and built 21 in San Diego. The most successful multi-unit owners move early and secure markets with room to grow. Use our free tool to search multiple ZIP codes and find franchises where you can still stack locations, before someone else does. A franchise specialist will be in touch to present what's available.- Outlets at the Start of the Year: 0
- Outlets at the End of the Year: 0
- Net Change: 0
Section IV – News Updates on the Jan-Pro Regional Developer Franchise
Section V – Financial Performance Representations (Average Revenues and/or Profits) for the Jan-Pro Regional Developer Franchise (Item 19, 2023 FDD)
- The below data is historical data for existing Regional Franchise Developers. Actual results vary from Regional Franchise Developer to Regional Franchise Developer.
- Conduct an independent investigation of the expenses you will incur in operating your franchise. Regional Franchise Developers or former Regional Franchise Developers listed in the Franchise Disclosure Document, may be a source of this information.
- Revenues, costs, and profits can vary considerably due to a variety of other factors, such as demographics and population of the Regional Franchise Developer’s Territory; competition from other commercial janitorial service providers in or near the Regional Franchise Developer’s Territory; economic conditions in the Regional Franchise Developer’s Territory; advertising and promotional activities; and the Regional Franchise Developer’s business abilities and efforts.
Data From Regional Franchise Developers’ Audited Financial Statements
- As of September 30, 2022, there were 112 locations in operation in the United States and Canada. Four Regional Franchise Developers commenced operations during the fiscal year ended September 30, 2022, and were excluded from this Item 19.
Part 1 – Gross Contract Revenue by Regional Franchise Developers During Fiscal Year Ending September 30, 2022
Top Third
- Count: 37
- Minimum: $7,008,343
- Maximum: $26,580,220
- Median: $8,957,586
- Average: $10,271,848
- Number and Percentage Above Average: 14 / 38%
Middle Third
- Count: 37
- Minimum: $3,643,732
- Maximum: $6,982,214
- Median: $5,203,964
- Average: $5,247,692
- Number and Percentage Above Average: 17 / 46%
Bottom Third
- Count: 38
- Minimum: $239,961
- Maximum: $3,529,270
- Median: $2,230,993
- Average: $2,014,317
- Number and Percentage Above Average: 23 / 61%
Total
- Count: 112
- Median: $5,197,639
- Average: $5,810,420
- Number and Percentage Above Average: 47 / 42%
- “Gross Contract Revenue” for a Regional Franchise Developer is the total gross revenue generated by all the Unit Franchisees operating under Franchise Agreements with the respective Regional Franchise Developer.
Part 2 – Gross Contract Revenue by Regional Franchise Developers by Vintage During Fiscal Year Ending September 30, 2022
1-5 Years
- Count: 24
- Minimum: $239,961
- Maximum: $26,580,220
- Median: $2,210,552
- Average: $4,058,522
- Number and Percentage Above Average: 8 / 33%
5-10 Years
- Count: 16
- Minimum: $977,529
- Maximum: $9,006,445
- Median: $3,050,345
- Average: $3,482,302
- Number and Percentage Above Average: 7 / 44%
10-15 Years
- Count: 6
- Minimum: $2,770,839
- Maximum: $10,547,108
- Median: $5,973,820
- Average: $6,462,902
- Number and Percentage Above Average: 3 / 50%
15-20 Years
- Count: 35
- Minimum: $1,789,134
- Maximum: $11,736,343
- Median: $7,087,690
- Average: $6,785,248
- Number and Percentage Above Average: 19 / 54%
20+ Years
- Count: 31
- Minimum: $2,208,029
- Maximum: $21,418,140
- Median: $6,545,469
- Average: $7,141,437
- Number and Percentage Above Average: 12 / 39%
Total
- Count: 112
- Average: $5,810,420
- Number and Percentage Above Average: 47 / 42%
Part 3 – Gross Revenue by Reporting Regional Franchise Developers During the Calendar Year Ending December 31, 2021
- The information in the table below was reported to Jan-Pro by 59 of the 112 (53%) Regional Franchise Developers who provided detailed financial statements for the calendar year ending December 31, 2021 (“Reporting Franchisee”).
- 16 additional Regional Franchise Developers provided financial statements but these reports did not provide the necessary details for a valid and reasonable comparison. 37 Regional Franchise Developers were also excluded because they did not provide financial reports.
- Jan-Pro reviewed the composition of the 59 Reporting Franchisees and Jan-Pro reasonably believes it contains a random representative sampling of Jan-Pro franchisees on level of sales, years in the business, and geography.
Top Third
- Count: 20
- Minimum: $2,248,869
- Maximum: $6,332,748
- Median: $2,920,484
- Average: $3,112,384
- Number and Percentage Above Average: 9 / 45%
Middle Third
- Count: 19
- Minimum: $1,322,782
- Maximum: $2,223,623
- Median: $1,685,356
- Average: $1,775,806
- Number and Percentage Above Average: 9 / 47%
Bottom Third
- Count: 20
- Minimum: $145,292
- Maximum: $1,294,951
- Median: $813,105
- Average: $835,653
- Number and Percentage Above Average: 10 / 50%
Total
- Count: 59
- Median: $1,685,356
- Average: $1,910,187
- Number and Percentage Above Average: 27 / 46%
- The “Gross Revenue” represents the recurring contractual revenue between the Regional Franchise Developer and the Unit Franchisees under their Unit Franchise Agreements, and includes revenue from (1) franchise fees derived from licensing new Unit Franchises, (2) royalty fees (paid by Unit Franchisees on Gross Contract Revenues), (3) management fees paid by Unit Franchisees, (4) insurance fees paid by Unit Franchisees, (5) other regular sales, marketing, and administrative fees paid by Unit Franchisees, and (6) interest earned on financing from Unit Franchisees.
- Gross Revenue excludes the net revenues or losses that were earned from generating Gross Contract Revenues billed on behalf of Unit Franchisees net of the payments made to Unit Franchisees. Also excluded from Gross Revenue are net revenues or losses on the sales of supplies to Unit Franchisees less the cost of those supplies.
Part 4 – Payroll Costs as a Percentage of Gross Revenue During the Calendar Year Ending December 30, 2021
- The information below presents certain expense categories as a percentage of Reported Gross Revenue (as defined above) for 56 of the 59 Reporting Regional Franchise Developers in 2021. Three of the 59 reported Gross Revenue but did not report detailed expense categories presented below, and as such, those three Reporting Regional Franchise Developers have been excluded from these tables.
Top Third
- Count: 18
- Minimum: 17.4%
- Maximum: 36.4%
- Median: 29.5%
- Average: 28.3%
- Number and Percentage Above Average: 10 / 56%
Middle Third
- Count: 19
- Minimum: 36.9%
- Maximum: 48.3%
- Median: 43.1%
- Average: 42.1%
- Number and Percentage Above Average: 11 / 58%
Bottom Third
- Count: 19
- Minimum: 49.0%
- Maximum: 83.2%
- Median: 52.8%
- Average: 56.9%
- Number and Percentage Above Average: 5 / 26%
Total
- Count: 56
- Median: 43.2%
- Average: 42.7%
- Number and Percentage Above Average: 27 / 48%
- Payroll costs include all salaries, wages, commissions, payroll taxes, and benefit expenses for all employees of the Regional Franchise Developers. Additionally, payroll costs may include compensation for the owners of some Regional Franchise Developers.
Part 5 – Occupancy Costs as a Percentage of Gross Revenue During the Calendar Year Ending December 30, 2021
Top Third
- Count: 18
- Minimum: 0.1%
- Maximum: 2.3%
- Median: 1.6%
- Average: 1.6%
- Number and Percentage Above Average: 10 / 56%
Middle Third
- Count: 19
- Minimum: 2.3%
- Maximum: 3.8%
- Median: 3.3%
- Average: 3.2%
- Number and Percentage Above Average: 11 / 58%
Bottom Third
- Count: 19
- Minimum: 4.0%
- Maximum: 18.9%
- Median: 5.0%
- Average: 6.1%
- Number and Percentage Above Average: 5 / 26%
Total
- Count: 56
- Median: 3.3%
- Average: 3.6%
- Number and Percentage Above Average: 24 / 43%
- Occupancy costs include costs of rent and utilities paid on office space for operating a Regional Franchise Developer.
Part 6 – Selling, General & Administrative Expenses as a Percentage of Gross Revenue During the Calendar Year Ending December 30, 2021
Top Third
- Count: 18
- Minimum: 9.8%
- Maximum: 17.9%
- Median: 15.4%
- Average: 14.6%
- Number and Percentage Above Average: 11 / 61%
Middle Third
- Count: 19
- Minimum: 17.9%
- Maximum: 25.4%
- Median: 21.6%
- Average: 21.4%
- Number and Percentage Above Average: 11 / 58%
Bottom Third
- Count: 19
- Minimum: 26.3%
- Maximum: 133.9%
- Median: 32.2%
- Average: 39.9%
- Number and Percentage Above Average: 5 / 26%
Total
- Count: 56
- Median: 22.0%
- Average: 25.5%
- Number and Percentage Above Average: 20 / 36%
- Selling, General & Administrative expenses include ordinary operating expenses to operate a Regional Franchise Developer, and includes the following types of costs and expenses: advertising, insurance, repairs and maintenance, legal and professional fees, accounting expenses, software and technology subscriptions and licenses, phone expense, vehicle expenses, and other miscellaneous operating expenses.
- Some Regional Franchise Developers have earned this amount. Your individual results may differ. There is no assurance that you’ll earn as much.
Section VI – Jan-Pro Regional Developer Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️
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