Bottom line
- Total investment $130K – $422K including a $50K franchise fee, 4.0% ongoing royalty.
- Average unit revenue of $6.1M/year (median $5.2M). Estimated payback in 0.4 years.
- Rated MODERATE with a risk score of 60/100.
- System growing at 90% CAGR over 3 years with 108 total units — strong expansion trajectory.
Item 1 · who you're contracting with
The Franchisor
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one Jan-Pro Franchise Development unit return on the cash you put in?
Unlevered ROIC · per unit
278%
Above typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Jan-Pro Franchise Development units return on equity?
Equity IRR · 5-yr
23.1%
2.82× MOIC
Year-1 DSCR
3.84×
EBITDA ÷ debt service
Equity required
$33.4M
on $54.8M purchase
Total debt
$21.4M
SBA $5.0M + senior + seller note
Overview
About
Jan-Pro franchisees operate commercial cleaning businesses serving office buildings, retail spaces, and facilities on contract. Day-to-day work involves recruiting and managing cleaning crews, scheduling jobs, managing customer relationships, invoicing clients, and ensuring service quality. The model relies heavily on subcontractor labor and territory protection to generate recurring revenue.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 7 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator — not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Jan-Pro presents meaningful litigation and growth risks masked by selective financial data; the persistent unit decline, widespread misclassification suits, and absence of Item 19 disclosures warrant deep due diligence into actual franchisee profitability and legal exposure.
Score breakdown · what drove the 60 / 100 rating
- 01MEDChronic unit decline of 0.9% YoY indicates stagnating or contracting system despite $624K avg net income claims
- 02HIGHSystemic employee misclassification litigation across multiple states (CA, WA, DC, MA) suggests structural business model vulnerability, not isolated incidents
- 03MINORDual royalty structure (4% revenue + 10% unit fees) combined with $130K-$421K investment range lacks transparency on actual franchisee costs and profitability thresholds
- 04HIGHNo Item 19 financial performance representation (Going Concern: False) prevents validation of claimed $624K net income across 108 units
- 05HIGHRegional developer involvement in litigation indicates franchisor may lack direct control over unit operations and labor compliance
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
86 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Jan-Pro Franchise Development · FDD (2026) PDF