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 2024 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 2024 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 2024 FDD, including information on the:
- fiscal year 2023 average, median, highest, and lowest gross contract revenue for the top third, middle third, bottom third, and all 114 Jan-Pro regional franchise developers who were in operation in the United States and Canada as of September 30, 2023 and did not commence operations during the fiscal year ended September 30, 2023
- fiscal year 2023 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 114 Jan-Pro regional franchise developers who were in operation in the United States and Canada as of September 30, 2023 and did not commence operations during the fiscal year ended September 30, 2023
- 2022 average, median, highest, and lowest gross revenue for the top third, middle third, bottom third, and all 50 Jan-Pro regional franchise developers who provided detailed financial statements for the calendar year ending December 31, 2022
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 2024 FDD:
- Initial Franchise Fee: $50,000 to $250,000
- 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: $7,500 to $12,500
- 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: $130,000 to $421,500
Section II – Jan-Pro Regional Developer’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 2024 FDD:
- Initial Franchise Fee: $50,000 to $250,000
- 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
2021
- Outlets at the Start of the Year: 95
- Outlets at the End of the Year: 98
- Net Change: +3
2022
- Outlets at the Start of the Year: 98
- Outlets at the End of the Year: 104
- Net Change: +6
2023
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- Outlets at the End of the Year: 107
- Net Change: +3
Company-Owned
2021
- Outlets at the Start of the Year: 0
- Outlets at the End of the Year: 0
- Net Change: 0
2022
- Outlets at the Start of the Year: 0
- Outlets at the End of the Year: 0
- Net Change: 0
2023
- 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, 2024 FDD)
- The below data is historical data for existing Regional Franchise Developers, none of which participated in the Service Agreement Pilot. 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.
Data From Regional Franchise Developers’ Audited Financial Statements
- As of September 30, 2023, there were 116 locations in operation in the United States and Canada (106 in the U.S. and 10 in Canada). Two Regional Franchise Developers in the U.S. commenced operations during the fiscal year ended September 30, 2023, and were excluded from this Item 19.
Part 1 – Gross Contract Revenue by Regional Franchise Developers During Fiscal Year Ending September 30, 2023
Top Third
- Count: 38
- Minimum: $7,117,810
- Maximum: $22,448,308
- Median: $9,534,795
- Average: $10,279,042
- Number and Percentage Above Average: 16 / 42%
Middle Third
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- Minimum: $3,827,726
- Maximum: $7,080,530
- Median: $5,157,215
- Average: $5,181,424
- Number and Percentage Above Average: 19 / 50%
Bottom Third
- Count: 38
- Minimum: $182,159
- Maximum: $3,436,929
- Median: $2,267,179
- Average: $1,957,596
- Number and Percentage Above Average: 22 / 58%
Total
- Count: 114
- Median: $5,157,215
- Average: $5,806,021
- Number and Percentage Above Average: 47 / 41%
- “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, 2023
1-5 Years
- Count: 23
- Minimum: $182,159
- Maximum: $12,324,862
- Median: $2,138,962
- Average: $2,941,429
- Number and Percentage Above Average: 8 / 35%
5-10 Years
- Count: 18
- Minimum: $307,329
- Maximum: $9,410,785
- Median: $3,339,227
- Average: $3,732,456
- Number and Percentage Above Average: 9 / 50%
10-15 Years
- Count: 3
- Minimum: $2,908,405
- Maximum: $11,292,840
- Median: $3,358,304
- Average: $5,853,183
- Number and Percentage Above Average: 1 / 33%
15-20 Years
- Count: 26
- Minimum: $2,984,564
- Maximum: $12,563,325
- Median: $8,009,918
- Average: $7,396,992
- Number and Percentage Above Average: 14 / 54%
20+ Years
- Count: 44
- Minimum: $1,971,824
- Maximum: $22,448,308
- Median: $5,975,582
- Average: $7,208,362
- Number and Percentage Above Average: 19 / 43%
Total
- Count: 114
- Median: $5,157,215
- Average: $5,806,021
- Number and Percentage Above Average: 47 / 41%
Part 3 – Gross Revenue by Reporting Regional Franchise Developers During the Calendar Year Ending December 31, 2022
- The information in the table below was reported to Jan-Pro by 50 of the 104 (48%) U.S. Regional Franchise Developers who provided detailed financial statements for the calendar year ending December 31, 2022 (“Reporting Franchisee”).
- Five additional Regional Franchise Developers provided financial statements but these reports did not provide the necessary details for a valid and reasonable comparison. 49 U.S. Regional Franchise Developers and 10 Canadian Regional Franchise Developers were also excluded because they did not provide financial reports.
- Jan-Pro reviewed the composition of the 50 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: 16
- Minimum: $2,456,217
- Maximum: $5,054,064
- Median: $3,182,277
- Average: $3,215,689
- Number and Percentage Above Average: 8 / 50%
Middle Third
- Count: 17
- Minimum: $1,115,561
- Maximum: $2,422,635
- Median: $1,760,480
- Average: $1,679,446
- Number and Percentage Above Average: 10 / 59%
Bottom Third
- Count: 17
- Minimum: $364,412
- Maximum: $1,018,248
- Median: $705,235
- Average: $677,325
- Number and Percentage Above Average: 10 / 59%
Total
- Count: 50
- Median: $1,754,738
- Average: $1,830,323
- Number and Percentage Above Average: 22 / 44%
- 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.
- 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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