Jan-Pro Cleaning & Disinfecting Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$130,000 - $421,500
Franchise Fee
$45,000
Total US Locations
107
Business Summary
Jan-Pro Franchising International, Inc. operates as a regional developer franchise, where it sells and supports unit franchises. These unit franchises then operate businesses offering janitorial and building maintenance services under the name "JAN-PRO Cleaning & Disinfecting."
Corporate History
Jan-Pro Franchising International, Inc. was incorporated in Massachusetts on April 6, 1995. Since that time, the company has offered Jan-Pro Regional Franchise Development franchises. While Jan-Pro Franchising International, Inc. has not directly operated businesses like those of its unit franchisees, it previously owned subsidiaries that did. The company is a wholly-owned subsidiary of Empower Brands Franchising, LLC, which has undergone name changes over the years (formerly Lynx Franchising LLC and Premium Franchise Brands, LLC). Empower Brands is, in turn, owned by Lynx-JP Holdings, Inc., which was acquired by MidOcean BCAT Holdings, Inc. in December 2020. This structure means Jan-Pro Franchising International, Inc. is part of a larger portfolio of franchise systems under the Empower Brands umbrella.
Financial Overview
Investment Range
$130,000 - $421,500
Franchise Fee (Low)
$45,000
Franchise Fee (High)
$250,000
Royalty %
4%
Marketing %
0.5%
Equipment Costs (Low)
$1,500
Equipment Costs (High)
$25,000
Working Capital
$75,000
Audited Financials
Yes
Offers Financing
Yes
Audit Opinion
Unqualified opinion
Financial Health Notes
Jan-Pro Franchising International, Inc.'s auditors issued an unqualified opinion on its financial statements. The company reported a net income of over $9 million in 2024, recovering from a net loss of over $14 million in 2023 that was primarily due to a $30 million legal settlement. The company is involved in significant transactions with its related parent companies and affiliates, including guaranteeing approximately $294 million in credit facilities for its parent, Empower Brands. Jan-Pro also carries notes receivable from its regional franchisees and maintains cash balances that sometimes exceed federal insurance limits, which could be impacted by global market liquidity issues.
Financing Details
Jan-Pro Franchising International, Inc. may offer financing for a portion of the initial franchise fee to qualifying existing franchisees under specific circumstances. The financing can cover up to 80% of the franchise fee for up to 48 months, depending on the franchisee's financial situation and aptitude. The interest rate is typically 10% per annum, with no prepayment penalty. The promissory note is secured by all assets used in the franchise, and all owners of the franchisee entity must personally guarantee the loan. Financing is not available for any other purpose. If a franchisee defaults, the entire amount becomes immediately due, and the interest rate may increase to the highest legal rate, potentially incurring attorney fees for collection.
Performance Metrics
Total US Locations
107
Franchised Units
107
Corporate Units
0
Avg Square Footage
1,750
Franchising Since
1995
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
4
Litigation Summary
Jan-Pro Franchising International, Inc. has a history of legal disputes, primarily concerning employee misclassification. In a federal court case (Roman, Vazquez and Aguilar), Jan-Pro was accused of misclassifying unit franchisees as employees, denying them wages and benefits. After a complex legal process that involved appeals and a ruling by the California Supreme Court on the retroactive application of a key employment test, Jan-Pro agreed to a $30 million settlement in October 2023, which received final court approval in May 2024. Additionally, Jan-Pro is involved in an ongoing case in Washington, DC Superior Court, filed in July 2022, where it is alleged to be a joint employer of a regional developer's unit franchisees, violating wage and sick leave laws. Jan-Pro and the regional developer filed motions for summary judgment in late 2024, with a court decision pending. Prior actions included a Massachusetts state court case (Claudio Brandao and Rommel Lima) filed in 2013, which was dismissed in 2016 for arbitration. Subsequently, individual arbitration proceedings for former franchisees Barros and Brandao, stemming from the Massachusetts case, were settled in September 2019 and August 2019 for $13,000 and $22,000, respectively.
Bankruptcy History
Jan-Pro Franchising International, Inc. has no bankruptcy history to report.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
Jan-Pro Franchising International, Inc. franchisees wishing to renew their agreement must provide written notice 6 to 12 months before the term expires. They must have fully complied with their franchise agreement, manuals, and other agreements, and be in good standing, meaning they are not in default of any obligations. Franchisees also need to pay all amounts owed, sign the then-current franchise agreement (which may have significantly different terms), meet current certification requirements, pay a $20,000 renewal fee, and sign a general release of claims against Jan-Pro and its affiliates.
Training & Support Program
Franchisor Assistance
Jan-Pro Franchising International, Inc. provides comprehensive support to its regional developer franchisees. Before opening, the franchise allows them to use its brand marks and system, supplies a standard opening package including office forms and marketing materials, provides operation manuals and training aids, and conducts an initial certification program for up to two individuals at no charge. It also furnishes template documents for the unit franchise agreement and disclosure document that regional developers use to sell unit franchises. Ongoing assistance includes additional consulting services upon request (which may incur a fee for personnel travel and meals), sub-licenses for proprietary MasterView software, Customer Portal, and JanHubSM solutions, and administration of a system-wide advertising fund. Jan-Pro also conducts periodic advanced training programs (which may have fees) and audits for brand standard compliance.
Initial Training Hours
71
Training Location
Alpharetta, Georgia
Ongoing Support
Jan-Pro Franchising International, Inc. provides additional consulting services upon reasonable request from its regional developer franchisees, which may incur a fee for personnel travel, lodging, and meals. It also grants sub-licenses for its proprietary MasterView software, Customer Portal, and JanHubSM solutions for ongoing operations. The franchisor maintains and administers a system-wide advertising fund for the benefit of all regional franchisees. Periodically, Jan-Pro conducts advanced or additional certification programs, for which it may charge a reasonable fee. Furthermore, it audits regional developer franchises to ensure brand standard compliance. Franchisees are also required to attend franchise conventions, meetings, and teleconferences, with Jan-Pro covering meeting arrangement and material costs, while franchisees bear their own travel, lodging, meals, and wages.
Franchise Requirements
Ideal Candidate Profile
Jan-Pro Franchising International, Inc. looks for regional developer franchisees who will serve as the initial Manager of their franchised business, dedicating their full time and best efforts to its operation. Candidates should possess strong business and personal skills, a good reputation, and sufficient financial capacity to manage and operate a subfranchisor business. All owners of the regional developer entity, their officers, directors, and spouses are bound by non-competition and confidentiality agreements.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
commercial
Owner Participation
full-time
Territory Type
exclusive
Territory Size Requirements
Jan-Pro Franchising International, Inc. defines its regional developer territories by the boundaries of designated Standard Metropolitan Statistical Areas, or by county or city borders. Each territory is designed to encompass a minimum population of 300,000 people.
Staffing Notes
Jan-Pro Franchising International, Inc. requires that the individual owning the largest share of the regional developer franchise serve as the initial Manager, dedicating their full time and best efforts to the business. Regional developer franchisees are solely responsible for hiring, maintaining, and making all employment decisions for their staff, including compensation and benefits. All employees, unit franchisees, and other representatives who will have access to Jan-Pro Franchising International, Inc.'s confidential information must sign a confidentiality agreement. The franchisor explicitly states that sample employment policies are optional and not a requirement, emphasizing the franchisee's independent responsibility for their employees.