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JAN-Pro of the West Franchise ProfileCleaning Franchises > Commercial Cleaning |
What Are the Initial Investment Requirements for a JAN-PRO of the West Franchise?
To start a JAN-PRO of the West franchise, the initial investment ranges from $3,575 to $50,775, including a franchise fee that can vary between $2,800 and $44,000. Additionally, prospective franchisees must have a net worth of $50,000 to $1,000,000 and liquid cash available within the same range. Understanding these financial commitments is crucial for anyone considering this opportunity.
What Are the Financial Performance Metrics for JAN-PRO of the West Franchise Units?
The average annual revenue per JAN-PRO unit is reported at $25,750, with a median annual revenue of $125,000. The highest-performing units can achieve revenues up to $200,000. With a breakeven time of approximately 12 months and an investment payback period of 24 months, potential franchisees can assess the financial viability of their investment in this cleaning services franchise.
What Ongoing Fees Should Franchisees Expect with JAN-PRO of the West?
Franchisees of JAN-PRO of the West should be prepared for ongoing fees, including a royalty fee of 10% on new unit sales and a marketing fee of 3%. These fees are essential for maintaining brand standards and supporting marketing efforts, which can significantly impact the overall profitability of the franchise.
How Has the JAN-PRO of the West Franchise Grown Over Recent Years?
The JAN-PRO of the West franchise has shown steady growth, increasing from 51 franchised units in 2017 to 58 units by 2019. This consistent expansion indicates a positive trend in brand acceptance and market demand, making it an attractive option for potential franchisees looking to enter a growing industry.
JAN-Pro of the West Franchise Financial Requirements
Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.
The minimum total assets (minus liabilities) you must possess.
Net Worth Required:
The estimated period to recoup your total investment.
Investment Payback:
The initial fee paid to join the franchise system.
Franchise Fee:
Ongoing percentage of revenue paid to the franchisor.
Royalty Fee:
Regular contribution toward the franchise’s advertising fund.
Marketing Fee:
The estimated timeframe to recover your initial costs.
Breakeven Time:
The total amount required to launch the franchise.
Initial Investment:
The minimum liquid capital you must have on hand.
Cash Required:
The typical yearly revenue generated per franchise location.
Average Revenue:
The middle value of yearly revenue among franchise locations.
Median Revenue:
The largest reported annual revenue among franchisees.
Highest Revenue:
The smallest reported annual revenue among franchisees.
Lowest Revenue:
A broad sector defining similar types of franchise businesses.
Industry:
A more specific division within the broader industry.
Category:
The key individuals guiding the franchise’s strategy and growth.
Leadership:
The official business address of the franchisor’s headquarters.
Corporate Address:
Available financing options to help start the franchise.
Funding Year:
The main organization that owns the franchise brand.
Parent Company:
JAN-Pro of the West Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2017 | 2018 | 2019 |
|---|---|---|---|
| Total Units | 51 | 54 | 58 |
| Net Change YoY | 3 | 4 | |
| Franchised Units | 51 | 54 | 58 |
| Net Change YoY | 3 | 4 | |
| Corporate Units | 0 | 0 | 0 |
| Net Change YoY | 0 | 0 |
Initial Investment
The JAN-PRO of the West franchise offers a low initial investment range starting at $3,575 and going up to $50,775. This flexibility allows aspiring franchisees to enter the commercial cleaning industry with varying levels of financial commitment. The initial franchise fee ranges from $2,800 to $44,000, making it accessible for many investors looking to start their business journey.
Royalty and Marketing Fees
Franchisees are required to pay a royalty fee of 10% on gross sales, along with a marketing fee of 3%. These fees are essential for maintaining brand standards and supporting marketing efforts, which help drive customer traffic to individual units. Understanding these ongoing costs is crucial for managing cash flow and profitability.
Financial Performance
The average annual revenue per unit for JAN-PRO of the West is reported at $25,750, with a median annual revenue of $125,000. This disparity indicates potential for higher earnings based on operational efficiency and market conditions. The highest annual revenue per unit can reach up to $200,000, showcasing the franchise's revenue-generating capabilities.
Breakeven and Payback Period
Franchisees can expect to reach their breakeven point within 12 months of operation. Additionally, the investment payback period is approximately 24 months, which is relatively favorable in the franchise industry. These timelines are critical for potential investors assessing the viability of their investment.
Franchise Growth
Since 2017, JAN-PRO of the West has shown steady growth in franchised units, increasing from 51 units in 2017 to 58 units in 2019. This growth trajectory reflects the brand's expanding market presence and the increasing demand for commercial cleaning services, making it an attractive opportunity for new franchisees.
Operating Expenses
Average operating expenses for JAN-PRO of the West total approximately $1,097,118 annually, with payroll and related expenses being the largest component at $503,890. Understanding these expenses is vital for franchisees to effectively manage their budgets and optimize profitability, ensuring that they can sustain their operations while meeting financial obligations.
Frequently Asked Questions
The initial investment for a JAN-PRO of the West franchise ranges from $3,575 to $50,775, which includes the franchise fee and other startup costs.