The World's No. 1 Fastest Growing Franchise

Jan-Pro's Regional Franchise opportunity offers not only the comprehensive training and backup you would expect as a franchisee, but also a large territory in which to recruit your own network of sub-franchisees and build a substantial business in the role of a franchisor

(Wednesday, March 19, 2008) - With international pedigree in developing strong and professionally run franchise networks, Jan-Pro is seeking regional-level franchisees to assist in launching its award-winning concept in the UK market. The company, which was established in 1991, has been franchising in North America for over 15 years with over 7,000 franchisees now trading in the USA and Canada. Despite its well-established position in its domestic markets, Jan-Pro is still developing its network apace and recently earned first place in the Fastest-Growing Franchises category of Entrepreneur magazine's Franchise 500 listing, as well as being ranked 26th overall. Jan-Pro's domestic network grew by 26 per cent last year, its Canadian network doubled and the company began entering international markets through Master Franchises.

JAN-PRO ENTERS THE UK MARKET
Irish businessman Gavin Peacock has an established record of successful business development since 1991, and was granted the Master Franchise rights to the UK and Ireland early last year. "Commercial cleaning is a market which is as buoyant and recession-resistant as any I have ever seen and Jan-Pro sets the benchmark by which the commercial cleaning industry can be judged," says Gavin. "The business model is low tech, very sustainable and can be replicated easily - it is a perfect investment for motivated franchisees.

"In the UK the commercial cleaning sector is huge with potentially massive growth. This growth is supported by the stricter compliance requirements being brought in for professional cleaning companies driven by greener legislation. While many commercial cleaning companies suffer a very high turnover in clients (in a static market these companies turnover approximately one third of their clients every year), Jan-Pro's client retention average is seven years!"

THE FRANCHISE MODEL
Jan-Pro is seeking to establish 30 Regional Franchisees across the UK, each operating in an area with a minimum population of 500,000. While still benefiting from the initial training and ongoing support of both the Dublin-based UK & Ireland Master Franchisee and the USA head office team, Jan-Pro Regional Franchisees will set up their own regional office to sell and support sub-franchises and win regional contracts for their network. The aim for the Regional Franchisee is to have a professional sales team delivering contracts at a guaranteed level to a network of sub-franchisees concentrating on delivering the first class Jan-Pro commercial cleaning services.

"From the customer's prospective it's a win, because the cleaning teams are managed by owner-operators, which means they get typically higher standards, far more motivated cleaning personnel, and none of the staff turnover issues that are associated with the commercial cleaning industry."

Earnings will result from the Management Service Fee returned by the sub-franchisees as a percentage of their turnovers. "The Regional Franchisee will be supported in office site selection, sub-franchisee recruitment advertising, customer billing through our state-of-the-art IT system and collecting performance Key Performance Indicators," says Gavin. "The knowledge of the business is installed through a two week training course at our international head office in Atlanta, Georgia, and ongoing support from the UK & Ireland head office team, including two weeks of in-territory launch support as well as weekly telephone conferences and regular regional meetings. We are wholly focused on supporting the Regional Franchisee and helping them to grow their business."

REGIONAL EARNINGS OPPORTUNITIES
The Jan-Pro Regional Franchisee's commitment to support their growth of the sub-franchisees is rewarded via seven revenue streams: franchise fees; royalty and management fees; finance on franchise fees; supplies and consumables (which are sourced from a central supplier); insurance commission on our international insurance policy; management fees for collections and commission on third party services such as window cleaning through a pre-selected panel of professionals.

"In 2008 we will be introducing some new exciting revenue streams for both Regional Franchisees and sub-franchisees, such as air conditioning duct cleaning and tile/grout restoration services," says Gavin. "Our projections for Dublin are to be billing in excess of one million euros per month by year three. That would be across a regional network of between 150 and 200 franchisees.

Text: Stuart Anderson
COULD YOU MANAGE A REGIONAL TERRITORY?
The pilot office opened in Dublin in March 2007, and a second regional office is soon to open in the West of Ireland. "Our target for 2008 is to establish between five and seven Regional Franchisees, each with a first year target of recruiting 30 sub-franchisees," says Gavin. "We're looking for individuals with white collar background, ideally with business management skills and a sales and marketing drive, who can make an initial investment of £75,000 plus cash flow, financing guaranteed."

THE SUB-FRANCHISE OPPORTUNITY
The strength of the Jan-Pro offering for sub-franchisees is in the income guarantee they buy into. This can range from turnovers of £10,000 up to £1 million depending upon the sub-franchisee's investment, which funds the Regional Franchisee's efforts in supplying the contracts to meet this level.

"The sub-franchisee is granted a turnover within the Regional Franchisee's territory, but not an exclusive area of operations, which frees the Regional Franchisee to focus on winning business and meeting their guarantees rather than dividing business up on a postcode basis," explains Gavin. "Once we start reaching critical mass in the UK we will adopt the national accounts process that is active in the USA, which will add an extra layer of business over the top of the Regional Franchisee's efforts making this an even more attractive opportunity. For all parties the bottom line profit in the Jan-Pro business model is probably one of the most robust and truly attractive that I have seen in any business."

Franchisee Diary Roger Flannery, General Manager, Dublin

The Dublin market has reacted exceptionally well to Jan-Pro. We've found that we are able to compete and win large international Fortune 500 companies, medium-sized companies and also the smaller solicitor-type offices. The office has recruited 20 sub-franchisees through local newspaper advertising and we plan to have another 20 in place shortly.

Sub-franchisees use environmentally friendly cleaning materials, colour-coded microfibre cloths and backpack vacuum cleaners and follow a trademarked systematic clean, which provides a uniformly high standard service. The Regional Franchisee is trained in Jan-Pro's TrackerTM 50-point audit system, which allows you to set the bar far, far higher than the customer's expectations. Our ability to deliver a consistently high quality clean has enabled us to successfully bid for typically specialist jobs such as medical establishments. From our initial contact with the customer through to presentation of quotations and securing the business, our feedback is that there is no-one else in the market that delivers to the same standards through the whole sales cycle. In fact, our customers rate our service every month by completing a detailed questionnaire, and the Dublin office is averaging 8.95 out of 10!

The head office provides training, support and standards auditing for Regional Franchisees on a regional basis. The sub-franchisee is no more than an hour away from their regional office, which means there are high levels of training and communication across the network. Jan-Pro is focused on delivering support to the franchisee in terms of contract sales, franchisee recruitment and operational support.

Because we represent a growing network of cleaning teams all working in the same uniforms and to the same standards, we can negotiate centrally for large projects. For example, this year we are in the position to bid on some very lucrative one-off contracts for rock contracts. In the UK and Ireland this area is the domain of only a few companies, so that's a huge potential market to capture. Your standard cleaning company cannot handle that cost effectively.

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