Verified — real FDD extraction
Not found in the SBA Franchise Directory under this name — though SBA loans to its franchisees exist; verify eligibility with your lender
Jan-Pro Cleaning Systems of Minneapolis
Other · independent · est. —
Jan-Pro is a commercial cleaning franchise system; this regional operation supports unit franchisees in the Minneapolis area. A unit franchisee runs a small janitorial business, cleaning offices and other commercial facilities on recurring contracts, with accounts and billing supported by the regional office.
Jan-Pro Cleaning Systems of Minneapolis net unit count declined -0.8% from 2013–2015 per its FDD Item 20.
New to franchising? Start here
A franchise is a business where you (the franchisee) pay a company (the franchisor) for the right to open and run a location using their brand and system — think a local Anytime Fitness or Taco John's owned by a small-business owner, not the corporation.
Before you can buy in, U.S. law requires the franchisor to give you a Franchise Disclosure Document (FDD) — a long legal filing covering its fees, finances, and history. The numbers on this page come straight from that document:
- Franchise fee — the one-time cost to buy in.
- Royalty — the ongoing cut of your sales you pay the franchisor.
- Item 20 — how many locations opened and closed, the basis for our verdict (from Proven & strong down to Distressed — or Too new to judge).
The verdict
Proven & steady
Distress
A real track record with an unremarkable region of the ledger: neither the growth nor the exits stand out, for better or worse. The main concern in the record: too many owners are failing outright rather than selling.
Exit rate · latest year
18.5%
fiscal 2015, per Item 20
Cost to open
$4K–$52K
Item 7 total investment range
SBA loan defaults
8.3%
12 loans resolved — directional only
Behind the verdict
the record, factor by factor · Item 20
3-yr trend · Item 20 Table 1
terminations + ceased-ops vs. all exits · Table 3
transfers vs. base · Table 3
actual vs. projected openings · Table 5
Item 19 disclosure + completeness
Systemwide units
2013–2015
Survival record
FDD Item 20 · outlet status by year
In fiscal 2015, 24 of 130 franchised outlets left the system — a 18.5% annualized exit rate. Not every exit is a failure — but this is the measurable floor.
Show the outlet tables ↓Hide the evidence ↑
| Status (FTC) | 2013 | 2014 | 2015 |
|---|---|---|---|
| Outlets at start | 122 | 132 | 130 |
| Opened | 17 | 20 | 25 |
| Transfers | 1 | 0 | 1 |
| Terminations | 0 | 0 | 0 |
| Non-renewals | 0 | 0 | 0 |
| Reacquired by franchisor | 0 | 0 | 0 |
| Ceased — other reasons | 7 | 22 | 24 |
| Outlets at end | 132 | 130 | 131 |
| Net change | +10 | -2 | +1 |
The lender's view
SBA 7(a)/504 loan performance · FY1991–present
Banks have made 17 SBA-backed loans to Jan-Pro Cleaning Systems of Minneapolis franchisees since 2002. Only 12 have resolved so far — too thin for a reliable default rate, but 1 of them charged off.
—
12 resolved · too thin to rate
—
avg. charged-off $ ÷ approved $
—
default rate × loss severity
$92,188
what recent franchisees borrowed
21 mo
approval → charge-off, defaulted loans
—
distinct banks lending
Charge-off rate by loan approval year (%)
Loan performance by state
SOURCE: SBA 7(a)/504 FOIA LOAN DATA (DATA.SBA.GOV), FY1991–PRESENT · MATCHED TO JAN-PRO CLEANING SYSTEMS OF MINNEAPOLIS BY FRANCHISE NAME · RESOLVED = CHARGED-OFF + PAID-IN-FULL
What it costs — and what it drags
FDD Items 5–7 · fees, investment, royalty
Buying in means a total investment of $4K–$52K (Item 7). The franchisor publishes an earnings claim (Item 19) — read its methodology closely.
To open (Item 7)
$4K–$52K
all-in investment range
Franchise fee (Item 5)
—
upfront, one-time
Royalty (Item 6)
10%
of sales, ongoing
Your figure — cross-check against this brand's Item 19 and current-owner validation.
Royalty you'd pay / yr
$100K
10% of sales, before profit
Over a 10-yr term
$1M
royalties alone, excl. ad fund
This is not profit. It's the only money the FDD actually pins down — what you put in, and the royalty you owe on every dollar of sales. Your real take-home depends on labor, rent, food cost, and ramp-to-breakeven, none of which any FDD discloses.
Build a real pro-forma for Jan-Pro Cleaning Systems of Minneapolis with an independent CPAModeled risk
FDD Risk Score · modeled from the public record
The public record puts this brand toward the riskier end of the systems we score — but the evidence is thin, so treat it as a range, not a number.
Risk percentile (range)
68–92 / 100
Directional
Modeled SBA charge-off
17.3%
Observed SBA charge-off
8.3%
Top drivers: Investment ceiling (log) (raises) · Item 20 exit rate (raises) · System size (log units) (raises) · Net unit growth (raises). Thin loan history — treat this as a range, not a number. A linear scorecard built from this brand's own disclosure figures plus the federal loan record behind its franchisees; full spec and cross-validated accuracy on the methodology page. A score is context, not a verdict.
Distress signals
news-sourced · bankruptcies, closures, lawsuits
No recent closures, bankruptcies, or major lawsuits found in the news for Jan-Pro Cleaning Systems of Minneapolis. That's a good sign — but it reflects news coverage, not a guarantee.
10 questions to ask a Jan-Pro Cleaning Systems of Minneapolis franchisee
Built from this brand's own disclosures · take it to your validation calls
The franchisor will give you a list of owners to call. Most buyers ask whether they like it. These are the questions built from what Jan-Pro Cleaning Systems of Minneapolis has actually disclosed — each one carries the number it came from, so you can tell whether the answer squares with the record.
- 01
Jan-Pro Cleaning Systems of Minneapolis’ own Item 20 shows 24 of 130 franchised outlets left the system in fiscal 2015 — about 18.5%. Do you know any of those owners, and do you know why they left?
A franchisor will call these “transitions.” An owner three doors down usually knows whether they sold at a profit or handed the keys back.
FDD Item 20 · FY2015
- 02
1 units transferred to new owners in fiscal 2015. When you look at those, were they people cashing out a good business — or getting out of a bad one?
Transfers count as neutral in every ranking. They are the single easiest place to hide distress.
FDD Item 20 · FY2015
- 03
The system went from 132 units to 131 over 3 disclosed years. What's the explanation you've been given, and do you believe it?
A shrinking system means fewer owners funding the ad fund and support staff you're paying for.
FDD Item 20 · FY2013–FY2015
- 04
You pay 10.0% royalty on gross sales, plus the ad fund, before any of your own costs. On your actual revenue last year, what did you take home as the owner — not revenue, take-home?
Royalty is charged on sales, not profit. This is the number the brochure never shows and the one your life actually runs on.
FDD Item 6
- 05
Jan-Pro Cleaning Systems of Minneapolis makes an earnings claim in Item 19. Does your unit look like that number — and do you know which units they included to build it?
Item 19 is legal to build from a flattering subset. Ask whether they excluded new units, closed units, or company stores.
FDD Item 19 · 2016
- 06
How many months did it take to cover your own costs, and how much cash did you burn getting there?
Ramp-to-breakeven working capital is the most underestimated line in any franchise purchase, and the most common reason otherwise-good units fail.
Not disclosed in any FDD — ask an owner
- 07
Item 3 discloses 2 legal matters. Do you know what those were about, and were any brought by franchisees?
Franchisee-brought suits over territory, fees or support tell you how the franchisor behaves when there's a disagreement.
FDD Item 3 · 2016
- 08
What does the franchisor charge for that you didn't expect — required tech fees, mandatory remodels, approved-supplier pricing?
Required spending appears across Items 6, 8 and 11 rather than in one place, so buyers routinely miss the total.
FDD Items 6, 8, 11
- 09
If your agreement came up for renewal tomorrow at current terms, would you sign again?
The single most predictive question you can ask. A hesitation is the answer.
Ask every owner you speak to
- 10
Who else should I call — including someone who left?
The franchisor's list is curated by definition. Former franchisees are where the unflattering truth lives, and current owners usually know how to reach them.
Ask every owner you speak to
Want this as a checklist you can take to the calls?
I'll email you the printable version, and tell you if Jan-Pro Cleaning Systems of Minneapolis’ numbers move — a new filing, a rising exit rate, a distress signal. Unsubscribe in one click.
A broker is paid by the franchisor to place you. I'm paid by you — and the job is pressure-testing Jan-Pro Cleaning Systems of Minneapolis's numbers, including talking you out of a bad deal.
This page is what buyers see before they call you for validation. If the record above is wrong — or right in a way the numbers can't show — say so. Corrections are checked against the filings; nothing you write is published with your name unless you agree to it.
Jan-Pro Cleaning Systems of Minneapolis franchise questions, answered from the filings
What percentage of Jan-Pro Cleaning Systems of Minneapolis franchises closed last year?
In Jan-Pro Cleaning Systems of Minneapolis's latest FDD Item 20 (fiscal 2015), 24 of 130 franchised outlets left the system — an annualized exit rate of 18.5%. That counts terminations, non-renewals, and "ceased operations — other reasons." There is no official failure rate, and not every exit is a failure, but this is the measurable floor.
How much does a Jan-Pro Cleaning Systems of Minneapolis franchise cost?
Per Jan-Pro Cleaning Systems of Minneapolis's 2016 FDD, buying in requires a total initial investment of $4K–$52K (Item 7).
What royalty does Jan-Pro Cleaning Systems of Minneapolis charge?
Jan-Pro Cleaning Systems of Minneapolis charges an ongoing royalty of 10.0% of gross sales, per Item 6 of its 2016 FDD.
Does Jan-Pro Cleaning Systems of Minneapolis disclose earnings (Item 19)?
Yes — Jan-Pro Cleaning Systems of Minneapolis makes a financial performance representation in Item 19 of its 2016 FDD. Read it closely: franchisors choose which units and which metrics to include.