A51/100FDD 2026
JAN-PRO Cleaning & Disinfecting — Litigation & Risk
Cleaning - Commercial & Janitorial · FDD Items 3, 4 & 5
Moderate — Review
3 cases disclosed in FDD Items 3 and 4.
Source: FDD Items 3–5
FDD Items 3 & 4
Litigation Metrics
Cases disclosed
3
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
51 / 100
FranchiseVerdict composite
Rating
STRONG
STRONG / MODERATE / CAUTION / AVOID
7(a) FOIA data · FY2020–present
SBA Loan Performance
Aggregated from public SBA 7(a) loan disclosures. Default rate is the share of loans that were charged off or settled for less than the full balance.
Total 7(a) loans
19
Government-backed loans issued
Default rate
0.0%
vs <3% typical · system-wide
5-yr default rate
—
Defaults
0 loans
Loans charged off or defaulted
FDD Items 5, 6 & 17 — what you give up
Contract Risk Indicators
Mandatory arbitration
Required
Disputes resolved outside court — limits your legal options
Jury trial waiver
Waived
You give up the right to a jury trial
Non-compete
1 yrs
Post-termination restriction on similar businesses
Franchisor can compete
Yes
Franchisor can open competing locations in or near your territory
Right of first refusal
No
Franchisor can match any purchase offer when you try to sell
Governing law
Illinois
State whose law governs disputes — relevant if you're not based there
What drove the 51/100 rating
Risk Score Breakdown
- 01HIGHActive multi-state employee misclassification litigation creating legal/compliance risk and potential liability exposure for franchisees
- 02MINORNo average revenue or net income disclosure (Item 19) prevents validation of franchise profitability claims
- 03MINORUnprotected territory with 10,314 units enables direct competition from other franchisees in same geographic area
- 04MINORModest unit growth of 2.8% YoY suggests market saturation or declining franchisee satisfaction
- 05MINOR12% royalty on gross billings is high-leverage model vulnerable to margin compression in competitive cleaning markets
- 06MINORLow franchise fee ($3,500) relative to total investment range indicates reliance on ongoing royalties rather than upfront capital
Severity inferred from FDD text — not a regulatory or legal classification
Litigation data from FDD Items 3, 4, and 5. SBA data from public 7(a) FOIA records (FY2020–present). Not legal advice — consult a franchise attorney before signing any franchise agreement.