Is the Cost to Open a JAN-PRO Cleaning Franchise Too High? (2022 FDD)
If you’re wanting to franchise a janitorial and disinfection business, JAN-PRO is a company to keep an eye on. This is the Jan pro franchise review.
Is Jan Pro Profitable?
Since 2014, JAN-revenue PRO’s has grown, according to Statista. According to reports, they made $587 million in sales in 2020. This applies to all of their franchisees worldwide.
Your income will depend on which of the numerous programs JAN-PRO offers when you franchise their firm, as well as how many accounts you can manage.
Their starter business bundle has the potential to bring in as little as $500 per month.
This would enable someone to test the company strategy on a small scale without immediately investing everything.
How Much Profit Does JAN-PRO Cleaning Make?
According to jan pro franchise review by the FDD which states that the 71 master JAN-PRO franchises’ yearly average gross profit is $1,455,074.
Although there isn’t any official information, the Trusted Cleaner estimates that a company that offers cleaning services makes an average yearly income of between $35,000 and $100,000.
However, keep in mind that this is dependent on the clientele and service fees your company has.
JAN-PRO Cleaning Franchise Benefits
You may be wondering what benefits there are to franchising JAN-PRO. Here are a few benefits this company offers:
Going Green
A company that protects the environment is quite amazing. JAN-PRO goes above and beyond to ensure that the cleaning agents they employ are secure for both the environment and individuals.
They utilize more than simply cleaning agents, too.
They use an environmentally friendly disinfecting technology as well.
There aren’t many cleaning firms that provide these alternatives, therefore by franchising JAN-PRO, you’ll improve the cleaning service sector.
Positive Customer Reviews
Customers that used JAN-services PRO’s have left a few favorable evaluations. David Hindman, a client who had his daycare facility cleaned, claims that the use of their EnviroShield disinfection system guaranteed the children’s health and safety.
According to Jan Edmonds, who is in charge of a children’s center, JAN-timely PRO’s reliable service led to a decline in contagious infections.
Diane Tinker from a school claims that whenever they ask JAN-PRO to provide more services, there is never a difficulty.
Strong Presence Globally
As previously indicated, JAN-PRO is available not just in the United States but also in 9 other nations. JAN-PRO Cleaning has a significant global footprint, which increases your reputation.
You can be sure that they have a tried-and-true business model because they have been in operation for 30 years.
Services
JAN-PRO offers more services than only housecleaning. They offer services to practically all industries.
JAN-PRO Cleaning is capable of cleaning everything from hospitals to workplaces to even schools and sizable spaces like stadiums.
It’s advantageous to run a company that offers a wide range of services since consumers will then come to you exclusively for different types of cleaning rather than looking elsewhere.
Cleaning Services
It’s great to have disinfection services in addition to cleaning services at this time of the pandemic.
Nowadays, this is typically considered a need, thus the fact that JAN-PRO included it shows how quick-witted and quick-acting they are.
The Difficulties a JAN-PRO Cleaning Franchise Faces
It sounds too good to be true. It’s inevitable that JANI-PRO will have some drawbacks. I suppose you’re right.
Every business faces unique difficulties. So that they don’t manage to catch you off guard, here are a few that you can anticipate.
Reviews from Bad Franchisees
JAN-PRO may have positive customer reviews, but this company also has a lot of negative franchisee reviews.
One complaint claimed that getting their accounts was difficult and that JAN-PRO was a scam.
Another person said that because of the low bids they get, the company was not profitable enough.
One even said they felt like they were working for JAN-PRO rather than running their own business.
Lawsuit
Jerry Vasquez, a franchisee in California, claimed that he was treated more like an employee of JAN-PRO than a franchise owner in a case that JAN-PRO was reported to have been involved in 2019.
Those who are considering franchising JAN-PRO may want to steer clear of this case.
It is best to have a lawyer review the Franchise Disclosure Document so you can determine whether the business is in your best interests or not and learn about any terms and payments you might have missed.
Lead Value and Quality
Many business owners in this sector struggle with lead quality and value. To receive the cheapest price, many firms and enterprises request quotes from various cleaning service providers.
Some janitorial service providers argue that the bids are too low to generate a profit after covering the costs of labor and cleaning products like soaps and disinfectants.
While obtaining corporate leads can be beneficial, networking and marketing on your own will boost your standing as a business owner.
Through your own efforts, you might be able to locate chances that are more lucrative. Undoubtedly, this will take more of your time.
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Work-Intensive Industries
You must be able to hire staff if you want to grow a janitorial services firm. After all, as a business owner, you have a finite amount of personal time, and you can only be present at one location at once.
According to the U.S. Chamber of Commerce, there is a severe labor shortage in the United States, as has been widely documented. More than 47 million employees left their jobs in 2021 alone.
More than 5% of employees in the leisure and hospitality sector typically leave their positions each month, making this sector particularly heavily hit.
It is difficult to run a business with such high employee turnover when you have to continually hire and train new workers to replace the ones who depart.
Is the JAN-PRO Cleaning Franchise Right for You?
Customers can choose from a variety of cleaning services provided by JAN-PRO. They appear to deal with everything, from cleaning to disinfecting.
Also, this Jan pro franchise review helps you evaluate.
But when it comes to being a fantastic franchise company, it’s challenging to claim with certainty that they’re the best, especially given that they have complaints and a lawsuit that damages their reputation.
As previously stated, it may be beneficial to have a lawyer and a financial advisor review the Franchise Disclosure Document with you.
What is an Alternative JAN-PRO Cleaning Franchise?
Stamatis is a cleaning service application that works similarly to JAN-PRO Cleaning. They provide cleaning services for homes and businesses in addition to restoration services.
They have been in business for 50 years and are present in 10 nations. Initial investments should total $120,000.
Jani-King is an alternative with beginning expenses ranging from $13,000 to $218,000. This business directly competes with JAN-PRO, although they only have 44 locations nationwide.
Do your study before making a decision because there are conflicting opinions regarding this company from previous owners.
I’m hoping that this guide will help you choose your next cleaning service franchise with greater knowledge. Be careful to give your assignment the attention it deserves.
Master JAN-PRO Franchise Review
In a master franchise system, a franchise brand collaborates with a third party to provide the latter the authority to find new franchisees in a certain area.
A Master Franchise Agreement is a document of those two signs.
The master franchisee often pays a fee to the master franchisor and assumes some or all of the cost of establishing new franchises in their region.
Because they have a similar role to the master franchisor only in a specific place, the master franchisees are occasionally referred to as sub-franchisors.
The majority of franchisors employ this tactic as a way to diversify outside of their local markets and grow internationally. A study found that 20% of US-based franchisors employ master franchising to grow outside of the US.
Cost of a JAN-PRO Franchise
Between $50,000 to $600,000 is the initial JAN PRO Master Franchise Fee. When starting a JAN PRO franchise, you must pay this up-front charge.
The size of the territory is the main source of variation.
From $127,500 to $769,000 is the projected total investment required to launch a JAN PRO Franchise. The upfront expenses that are part of the JAN PRO’s initial investment also include the following expenses.
Numerous of these are one-time costs required to start the franchise. See how much it will cost to open a JAN PRO Master franchise in 2022 by looking at the chart below.
How Much Money do Franchisees of JAN PRO Unit Make?
A total of $1,065,100 in royalties were paid to the franchisor by all the system’s franchises. The Gross Billings for the prior year would be $10,651,000 because the Royalty is a constant 10% rate.
This works out to $76,625 in AUV across the 139 units now in use (Average Unit Volume) Average Unit Volume for 2021 JAN PRO Unit Franchise: $76,625
According to the expected Wisconsin average unit volume for JAN PRO’s franchise sites, it will take approximately 2.5 years to recover your investment at a 50% profit margin. Compared to other franchise options, this is less appealing.
People who join JAN PRO have the chance to work for a company that pays its master franchisees well. Unit franchises generate substantial profits when they sell their companies.
Having said that, the master franchisor’s financial situation appears a little iffy. The annual income was projected to drop by roughly half between 2020 and 2021.
