Jani-King Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$10,500 - $223,050
Franchise Fee
$5,000
Total US Locations
4,928
Business Summary
Jani-King franchisees operate businesses that provide comprehensive cleaning and maintenance-related services. This includes commercial, industrial, and institutional cleaning and maintenance, as well as the distribution of related supplies and equipment. Jani-King franchisees offer services like carpet cleaning, hard floor care, trash disposal, window washing, and other specialty cleaning services to various commercial clients on daily, weekly, or monthly schedules.
Corporate History
Focus Franchising, Inc. d/b/a Jani-King of Madison was formed as a Wisconsin corporation on April 25, 2013. It acquired the rights to offer Jani-King franchises in the Madison, Wisconsin area in June 2013 from Jani-King Franchising, Inc. Forward Franchising, Inc. d/b/a Jani-King of Green Bay was formed as a Wisconsin corporation on March 5, 2018, and acquired the rights to offer Jani-King franchises in the Green Bay, Wisconsin area in May 2018 from Jani-King Franchising, Inc. Jani-King Franchising, Inc. (JKF), a subsidiary of JK International, Inc. (JK INT'L), was incorporated in Texas on October 1, 1985, and has been developing its Regional Franchise program since that time.
Financial Overview
Investment Range
$10,500 - $223,050
Franchise Fee (Low)
$5,000
Franchise Fee (High)
$195,500
Royalty %
10%
Marketing %
1.5%
Equipment Costs (Low)
$2,700
Equipment Costs (High)
$9,750
Working Capital
$4,650
Audited Financials
Yes
Offers Financing
Yes
Audit Opinion
Going concern qualification
Financial Health Notes
The auditors have noted concerns about the ability of both Focus Franchising, Inc. d/b/a Jani-King of Madison and Forward Franchising, Inc. d/b/a Jani-King of Green Bay to continue as going concerns. For Focus Franchising, Inc., its current liabilities exceeded its current assets by $939,194. This entity has also provided cash flow assistance to an affiliated company with uncertain repayment ability and has made distributions to its stockholder that exceeded its earnings. Similarly, Forward Franchising, Inc. also has current liabilities exceeding its current assets by $109,710. The continued operation of both regional franchisors is dependent on them stabilizing their working capital situation.
Financing Details
Jani-King does not offer direct financing for the initial franchise fee, but it does provide lease arrangements for most of the commercial cleaning equipment that franchisees will use in their business. The specific terms of these equipment leases vary, but they typically have repayment periods of 12 to 24 months, with a personal guarantee required from the franchisee. Jani-King also offers a limited guarantee of up to $300 for ongoing supply purchases made by franchisees from designated and approved suppliers, and it provides an automated payment service for these purchases.
Performance Metrics
Total US Locations
4,928
Franchised Units
4,916
Corporate Units
12
Franchising Since
1985
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
15
Litigation Summary
Jani-King of Madison and Green Bay themselves report no litigation. However, Jani-King International, Inc. (JK INT'L) and its affiliates have been involved in several legal disputes. Currently, there is one pending case: The U.S. Department of Labor filed a lawsuit in 2016 against Jani-King of Oklahoma, Inc., alleging that it mischaracterized its franchisees as independent contractors and violated the Fair Labor Standards Act. Summary judgment motions in this case were still pending as of April 2024. In the past, JK INT'L and its affiliates faced several class action lawsuits, primarily concerning allegations of worker misclassification and wage violations in states like Massachusetts, Pennsylvania, California, Rhode Island, Connecticut, and Texas. Many of these cases resulted in significant settlements, for instance, $7.5 million in Massachusetts (2014), $3.7 million in Pennsylvania (2019), and $15.5 million in California (2022). There have also been individual settlements for fraud and breach of contract, such as one in Texas for $34,250 (2019) and one in Kentucky for $55,000 (2023). Additionally, Jani-King of Miami, Inc. settled a franchisor-initiated lawsuit in 2023 for $1.2 million regarding post-termination non-competition violations. Historically, JK INT'L also faced administrative orders and consent decrees, including a 1988 California Department of Corporations order regarding disclosure violations (modified in 1999) and a 1995 Federal Trade Commission (FTC) settlement for Franchise Rule violations.
Bankruptcy History
Neither Jani-King of Madison and Green Bay nor Jani-King International, Inc., nor any of their officers or directors, have been involved in any bankruptcy proceedings.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their Jani-King franchise, franchisees must be in good standing and provide written notice of their desire to renew between seven and twelve months before the current agreement ends. They will also need to sign a general release of any claims against Jani-King and its affiliates. Additionally, franchisees must sign Jani-King's then-current franchise agreement, which may have terms and conditions that are substantially different from their original agreement.
Training & Support Program
Franchisor Assistance
Before opening, Jani-King grants the right to operate and use its trademarks within a non-exclusive territory. Jani-King provides an Office Supply and Advertising Package, access to confidential operating manuals and training aids, and an initial training program covering cleaning methods, operating systems, sales, and promotional plans. They also certify franchisees after they complete training, acquire equipment, obtain insurance, and establish their business entity. Jani-King will also begin offering initial customer accounts, aiming to meet a specific gross monthly billing amount within an 'Initial Offering Period'. If a franchisee chooses to open a separate office, Jani-King must approve its appearance. Once open, Jani-King handles all customer billing and accounting, disbursing monthly payments to franchisees after deducting fees. Ongoing support includes marketing and technical assistance, consultation on operating procedures, and additional training (currently at $50 per hour plus expenses). Franchisees receive access to updated manuals and can purchase promotional materials. Jani-King conducts periodic quality control visits to customer locations and has operations representatives available for routine questions and problem-solving. They also reserve the right to modify system standards and policies, which may require additional investment from franchisees. Additional business opportunities may be offered for a Finder's Fee.
Initial Training Hours
40
Training Location
Jani-King's principal business office in Madison or Green Bay, or designated local customer locations, or a local regional office.
Ongoing Support
After opening, Jani-King provides ongoing support by offering additional customer accounts until the initial business obligation is met. Jani-King manages all customer billing and accounting, disbursing monthly payments to franchisees. They also provide continuous marketing and technical assistance, along with consultation and advice on operating procedures. Franchisees have access to updated operating manuals and can purchase promotional materials at a reasonable cost. Jani-King conducts periodic quality control visits to customer locations to evaluate service quality and offers recommendations for improvement. An operations representative is available to answer routine questions and assist with problems. Jani-King also establishes, modifies, and supplements system standards and policies for franchise operations, which may require additional investments or higher operating costs for franchisees. Additional training, seminars, and refresher courses are offered, and may be required if performance standards are not met, with an hourly rate (currently $50 plus expenses) for special assistance.
Franchise Requirements
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Hybrid
Owner Participation
Hands-On
Territory Type
Non-Exclusive
Staff Count
1
Territory Size Requirements
Jani-King territories are defined by specific Wisconsin counties. The Madison area territory includes Columbia, Dane, Green, Rock, and Sauk counties. The Green Bay area territory includes Adams, Brown, Calumet, Door, Green Lake, Juneau, Kewaunee, Manitowoc, Marathon, Marquette, Outagamie, Portage, Shawano, Waupaca, Waushara, Winnebago, and Wood counties. The territory granted will be commonly described as the Madison and/or Green Bay Standard Metropolitan Statistical Area.
Staffing Notes
Jani-King franchisees are required to hire at least one employee in addition to themselves or their principals. Franchisees are solely responsible for providing all necessary labor, materials, tools, and supplies to service customer locations, adhering to system standards and customer satisfaction. They must also comply with all federal, state, and local wage and hour laws, maintain accurate payroll records, and ensure their employees are in approved, clean uniforms with personal identifying name tags. Certain customers may require background checks for franchisees and their employees as a condition of service.