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Jan-Pro of Southern Indiana Franchise ProfileCleaning Franchises > Commercial Cleaning |
What Are the Initial Investment Requirements for a Jan-Pro of Southern Indiana Franchise?
To start a Jan-Pro of Southern Indiana franchise, you’ll need to consider a range of initial investment costs. The franchise fee is set at $2,520, while the total initial investment can vary significantly, ranging from $4,920 to $78,140. It's essential to have liquid capital available, with requirements between $4,020 and $58,170. Additionally, a net worth of $50,000 to $150,000 is necessary to qualify for franchise ownership. These figures will help you assess your financial readiness for this opportunity.
What Are the Ongoing Fees for a Jan-Pro Franchise?
Owning a Jan-Pro franchise means being prepared for ongoing fees that will impact your profitability. Franchisees are required to pay a royalty fee of 13% on their revenue, along with a marketing fee of 1%. These fees are essential for maintaining brand presence and support, but they can also affect your bottom line. Understanding these costs upfront will help you plan your financial strategy more effectively as you run your franchise.
What Is the Potential Revenue for a Jan-Pro Franchise Unit?
The revenue potential for a Jan-Pro of Southern Indiana franchise unit can be quite promising. On average, each unit generates about $120,000 in annual revenue, with a median revenue of $814,924. However, there is a broad range, with the lowest annual revenue reported at $25,000 and the highest reaching an impressive $12,854,660. This variability highlights the importance of location, management, and market demand in determining your franchise's financial success.
How Quickly Can You Expect to Break Even with a Jan-Pro Franchise?
Franchisees can anticipate a breakeven period of approximately 12 months after opening their Jan-Pro unit. This relatively quick return on investment is an attractive feature for many aspiring entrepreneurs. Furthermore, the investment payback period is around 24 months, allowing you to recover your initial costs and start generating profit. Understanding these timelines can help you set realistic financial goals as you embark on your franchise journey.
Jan-Pro of Southern Indiana 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 Southern Indiana Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2021 | 2022 | 2023 |
|---|---|---|---|
| Total Units | 88 | 90 | 90 |
| Net Change YoY | 2 | 0 | |
| Franchised Units | 87 | 89 | 89 |
| Net Change YoY | 2 | 0 | |
| Corporate Units | 1 | 1 | 1 |
| Net Change YoY | 0 | 0 |
Initial Investment
The Jan-Pro of Southern Indiana franchise offers a low initial investment range starting at $4,920 and going up to $78,140. This flexibility allows aspiring franchisees to assess their financial readiness and choose an investment level that aligns with their business goals. The initial franchise fee is set at $2,520, making it accessible for those looking to enter the cleaning services industry.
Financial Performance
Franchisees can expect an average annual revenue of approximately $120,000 per unit, with a median revenue of $814,924. The revenue range varies significantly, with the lowest annual revenue recorded at $25,000 and the highest at $12,854,660. This broad spectrum indicates the potential for both modest and exceptional earnings, depending on the franchisee's operational effectiveness and market conditions.
Ongoing Fees
Jan-Pro of Southern Indiana requires a royalty fee of 13% on gross sales, along with a marketing fee of 1%. These ongoing fees are essential for maintaining brand standards and supporting franchisee marketing efforts. Understanding these costs is crucial for franchisees as they plan their financial forecasts and operational budgets.
Required Capital
To qualify for a Jan-Pro franchise, franchisees need to have a net worth between $50,000 and $150,000. Additionally, the cash required to start can range from $4,020 to $58,170, ensuring that prospective owners have enough liquidity to cover initial expenses and operational costs during the startup phase.
Breakeven and Payback
Franchisees can anticipate a breakeven time of approximately 12 months, making it a relatively quick path to profitability. The investment payback period is estimated at 24 months, allowing franchisees to recover their initial investment in a reasonable timeframe, assuming they effectively manage their operations and client acquisition.
Franchise Growth
As of 2023, Jan-Pro of Southern Indiana has maintained 89 franchised units since 2022, with a consistent count of 1 corporate unit. This stability in unit growth reflects the brand's solid presence in the market and its ability to attract new franchisees, signaling a positive outlook for potential investors considering this franchise opportunity.
Frequently Asked Questions
The initial investment for a Jan-Pro franchise ranges from $4,920 to $78,140, depending on various factors such as location and specific business needs.