FRANCHISE·WATCH·DESK

From the filed FDD — automated extraction, check the source

2016 FDD · 9+ years old — too old to rate

Jan-Pro Cleaning Systems of Minneapolis

Commercial janitorial & hygiene · parent company: not identified

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% over 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. Most numbers on this page come from that document; others come from federal SBA loan records and labor and census data, each labelled with its source:

  • 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, transferred and left the system, the main basis for our verdict, which rates how strong the disclosed record is, or says when the system is too new, the filing too old, or the disclosure too thin to judge.

Our rating · opinion

Filing too old to rate

The newest FDD we hold for this brand is from 2016, more than two years old. Franchise systems change a lot in that time, so we don't rate it until we have a current filing.

Exit rate · fiscal 2015

18.5%

vs 2.6% median across 10 comparable systems (commercial janitorial & hygiene)

Cost to open

$4K–$52K

Item 7 total investment range

SBA loan losses

Too few to rate

12 seasoned resolved loans; 30 needed

Market density · Utah

Dense market

22% denser than the national average

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Data as of 2026-10-29. Figures come from Jan-Pro Cleaning Systems of Minneapolis's public FDD filings (latest: MN 2016, extracted 2026-07-23) and SBA FOIA loan records (through FY2026), extracted by us and possibly containing errors. The rating is our opinion, not investment, legal, or tax advice. Franchisor or owner and see something wrong? Report a correction — we review every request.

What each source says

FDD record · SBA loans · model · auditor

Our answer: Filing too old to rate

We don't rate on an FDD more than two years old; the loan record and model are shown as context until a current filing arrives.

FDD record · Item 20

Filing too old

Latest FDD we hold is from 2016.

SBA loans · vs same-year loans

Too few seasoned loans

12 resolved loans approved by FY2020; 30 needed.

Modeled risk

Elevated

Directional only — too few seasoned loans to check it.

Auditor opinion · Item 21

Clean opinion

Unqualified audit, 2016 FDD. Says nothing about franchisee results.

Behind the verdict

the record, factor by factor · Item 20

hi-1.0.0
Net unit growth41%

latest consecutive years · Item 20 Table 1

Fair
Exit quality29%

terminations + ceased-ops vs. all exits · Table 3

Weak
Transfer / churn18%

transfers vs. base · Table 3

Strong
Promise-keeping12%

actual vs. projected openings · Table 5

Strong
Transparencynot in verdict

Item 19 disclosure + completeness · shown, not counted in the verdict

Strong

Systemwide units

2013–2015

-0.8%
132201313020141312015

Survival record

FDD Item 20 · outlet status by year

In fiscal 2015, 24 of 130 franchised outlets left the system — an exit rate of 18.5% (fiscal 2015), vs a 2.6% median across 10 comparable systems (commercial janitorial & hygiene). An exit is not a failure: this counts terminations, non-renewals and "ceased — other reasons" as reported, and excludes transfers to new owners.

Show the outlet tables ↓
Status (FTC)201320142015
Outlets at start122132130
Opened172025
Transfers101
Terminations000
Non-renewals000
Reacquired by franchisor000
Ceased — other reasons72224
Outlets at end132130131
Net change+10-2+1

The franchisor's own finances

FDD ITEM 21 · AUDITED STATEMENTS · 2016 FDD

Full read →

Ferland & Company CPAs gave an unmodified (clean) opinion on the statements in the 2016 FDD; revenue rose 27% from FY2013 to FY2015.

This is the company selling the franchise, not any franchisee. A clean opinion means the statements are fairly presented — not that the business is healthy.

Audit opinion

Unmodified (clean) opinion

Ferland & Company CPAs

Revenue · FY2015

$1.8M

extracted · not cross-checked

Net income · FY2015

$420K

extracted · not cross-checked

Where FY2015 revenue came from

26% royalties

initial-fee share not extracted

Show the statement figures ↓
Fiscal yearFY2013FY2014FY2015
Total revenue$1.4Mextracted · not cross-checked$1.3Mextracted · not cross-checked$1.8Mextracted · not cross-checked
Royalty revenue$407Kextracted · not cross-checked$380Kextracted · not cross-checked$468Kextracted · not cross-checked
Net income (loss)$388Kextracted · not cross-checked$311Kextracted · not cross-checked$420Kextracted · not cross-checked

The lender's view

SBA 7(a)/504 loan outcomes · compared with franchise loans of the same years

Banks have made 17 SBA-backed loans to Jan-Pro Cleaning Systems of Minneapolis franchisees since 2002. Only 12 of its loans approved by FY2020 have resolved — fewer than the 30 we need to compare it fairly with other franchise loans, so we don't rate it.

All-time, 1 of 12 resolved loans charged off (8.3%). That raw figure mixes every approval year since 2002 — loans made in 2006–08 failed at several times the rate of loans made in 2010–13 across all franchises — so it is shown as evidence, not as the score.

Loss vs same-year loans

—

12 seasoned resolved · 30 needed

All-time charge-off · raw

8.3%

1 of 12 resolved, every approval year

Loss given default

—

charged-off $ ÷ approved $, defaulted loans

Avg. loan · FY2020+

$92,188

what recent franchisees borrowed

Median time to default

—

shown with 10+ defaults

Lenders · FY21+ vs FY16–20

—

distinct banks lending

Charge-off rate by loan approval year (%) · dashed line = all franchise loans that 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 SBA FRANCHISE NAME/CODE · RESOLVED = CHARGED-OFF + PAID-IN-FULL · EXPECTED = SAME-YEAR RATE ACROSS ALL SBA FRANCHISE LOANS, LOANS ≥ ~6 YEARS OLD

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

If a unit does this in annual sales…$400K/yr

Starts at a placeholder of $400K — a round figure for the sector, not from Jan-Pro Cleaning Systems of Minneapolis’ filings. Set your own figure and check it against this brand's Item 19 and what owners tell you.

Royalty you'd pay / yr

$40K

10% of sales, before profit

Over a 10-yr term

$400K

royalties alone, excl. ad fund

This estimate is computed by software from the brand's public filings and any inputs you enter. No CPA prepared it for you and no assurance is provided on it. Actual results will differ, and the differences may be material.

This is not profit. It covers what the FDD fixes: what you put in, and the royalty you owe on sales. Your take-home depends on labor, vehicles, supplies, insurance, and the months to breakeven, none of which the FDD fixes for your unit (some Item 19s include cost data — read it).

Build a real pro-forma for Jan-Pro Cleaning Systems of Minneapolis with a buyer-paid CPA

How the earnings claim is built

FDD ITEM 19 · BASIS · 2016 FDD

This filing makes an Item 19 earnings claim; we have not yet read how it is built. Open Item 19 and check which units it covers, which it leaves out, and whether it shows costs.

Show the basis ↓

Modeled risk

FDD Risk Score · a prediction from disclosure and loan-file features

Elevated · directional · modeled

The model puts this brand in its elevated band — but this brand has too few seasoned SBA loans to check the score against, so read it as a band, not a number.

Risk percentile

Elevated

Directional · no point estimate

Modeled · vs same-year loans

band only

too few seasoned loans to check

Top drivers: Item 20 exit rate (raises) · Investment ceiling (log) (raises) · Royalty rate (lowers) · System size (log units) (raises). Too few seasoned SBA loans to check the score — read it as a band. A linear scorecard trained on brands' vintage-adjusted SBA loss records; full spec and cross-validated accuracy on the methodology page. A score is context, not a verdict.

Public records

Bankruptcy, closure & federal court records · coverage is selective · dockets are not scored

We have no verified public-record signals published for Jan-Pro Cleaning Systems of Minneapolis. This is not evidence that no events exist. Check PACER, the FDD's Item 3 (litigation) and Item 4 (bankruptcy), and recent news yourself.

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 questions come from what Jan-Pro Cleaning Systems of Minneapolis has disclosed. Each one carries the number it came from, so you can check the answer against the record.

  1. 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

  2. 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?

    Item 20 counts transfers as neutral, but a transfer can be a good sale or a reluctant exit — the filing does not say which.

    FDD Item 20 · FY2015

  3. 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

  4. 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

  5. 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

  6. 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

  7. 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

  8. 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

  9. 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. 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.

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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. Franchisors: send corrections with the page reference and we will review them against the filing and update or annotate the page. 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

How many Jan-Pro Cleaning Systems of Minneapolis franchised outlets left the system 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 exit rate of 18.5% — compared with a 2.6% median across 10 comparable systems (commercial janitorial & hygiene) tracked here. That counts terminations, non-renewals, and "ceased operations — other reasons" as the franchisor reported them; it excludes transfers to new owners. The FDD does not say why each outlet left, and an exit is not the same as a failure.

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.