For the truly ambitious: a wealth creation opportunity with the world's fastest growing franchise
Jan-Pro has been ranked among the top franchises in the USA for years, and last year's decision to take it into international markets has quickly benefited the UK where its Regional Franchise opportunity to become both a franchisor and a franchisee is now being launched
Text: Stuart Anderson
The concept of franchising has assisted tens of thousands of people in the UK to become business owners by investing in a franchise licence and enjoying the support of a franchisor, but have you ever considered the benefits of entering the other side of the relationship... as a franchisor? This is the opportunity being offered by global franchise brand Jan-Pro Cleaning Systems, which is seeking Regional Franchisees across the UK to take on substantial territories and establish their own sub-networks of franchisees.
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. Earnings will result from the Management Service Fee returned by the sub-franchisees as a percentage of their turnovers.
ONE OF THE WORLD'S LEADING FRANCHISES
Jan-Pro was established in 1991 and has been franchising in North America for over 15 years, with over 7,000 franchisees now trading in the USA and Canada. The company has built a strong reputation for franchising and was recently ranked 26th in Entrepreneur magazine's Franchise 500 listing. The same report ranked Jan-Pro as number one in its Fastest-Growing Franchises category after its domestic network grew by 26 per cent, its Canadian network doubled and the company began entering international markets through Master Franchises.
The UK & Ireland Master Franchise was awarded to Irish businessman Gavin Peacock, who has operated a successful IT business in both countries since 1991. 'I was looking at commercial cleaning franchising as a new investment because it is a market which is as buoyant and recession-resistant as any I have ever seen,' reflects Gavin. 'The Jan-Pro business sets the benchmark by which the commercial cleaning industry can be judged. The business model is low tech, very sustainable and can be replicated easily - it is a perfect investment for motivated franchisees.'
Gavin launched his Dublin office last March, which is reported to be performing 'very well' with 20 sub-franchisees operating by the end of 2007 and a further 20 due to launch by the end of its first 12 months. 'This success is more than replicable in the UK,' he comments. 'We have a Regional Franchisee signed up to develop the West of Ireland who will start recruiting sub-franchisees in the Summer, and there are three more regions available to develop.
'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!'
MULTIPLE INCOME STREAMS
While Regional Franchisees can service accounts themselves, the business concept is designed around achieving success through a sub-franchisee network and the recruitment process kicks off as soon as the Regional Franchisee's office is ready to open. 'What's amazing about this concept is that your recruitment period of franchisees is probably one of the quickest in the business,' says Gavin. 'Normally fishing for them in a very diverse pool through local newspaper advertising will yield exceptional results, as has been the case with our office in Dublin.'
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 States, 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.'
Jan-Pro's target for 2008 is to establish between five and seven Regional Franchisees, each with a first year target of recruiting 30 sub-franchisees. 'We're looking for individuals with white collar background, ideally with business and marketing skills, who can make an initial investment of £75,000 plus cash flow, financing guaranteed,' says Gavin. 'This opportunity is truly a three way win: for the customers who get an exceptional quality service; for the sub-franchisees who get to run their own operations with a guaranteed income; and for the Regional Franchisee who gets an office-based, nine-to-five service sector wealth creation business.'