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Jani-King

Jani-King of Washington, D.C., Inc.
https://www.janiking.com
1-703-922-4300
16885 Dallas Parkway, Addison, Texas 75001
FDD Version:

How much does Jani-King cost?

Initial Investment Range

$25,340 to $118,768

Franchise Fee

$19,000 to $74,000

The franchise is for a business that will provide comprehensive commercial cleaning and maintenance services.

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Jani-King April 30, 2025 FDD Risk Analysis

Free FDD Library AI Analysis Date: August 19, 2025

DISCLAIMER: Not Legal Advice - For Informational Purposes Only. Consult With Qualified Franchise Professionals.

1

Franchisor Stability Risks

Start Here
Total: 10
2
2
6

Disclosure of Franchisor's Financial Instability

Medium Risk

Explanation

The franchisor, Jani-King of Washington, D.C., Inc. (Jani-King DC), relies on a performance guaranty from its parent, Jani-King International, Inc. (JK INT'L). While the parent's audited financials show profitability, they also disclose a recent cybersecurity incident with unknown potential costs and significant past legal settlement payments. This creates uncertainty about the long-term financial stability and resources available to support your franchise.

Potential Mitigations

  • An accountant must carefully analyze the consolidated financial statements, including all footnotes regarding legal settlements, contingencies, and the cybersecurity incident.
  • Discuss the strength and enforceability of the parent company's Guaranty of Performance with your attorney.
  • Your business advisor should help you assess if the franchisor's financial resources are adequate given its extensive litigation history.
Citations: Item 21, Exhibit G

High Franchisee Turnover

High Risk

Explanation

Item 20 data reveals a consistent net decrease in operating franchises over the last three years. Critically, Item 19 separately discloses the existence of 89 "Non-Operational Franchisees" as of year-end 2024, a number far exceeding the 47 active franchises at that time. This extremely high rate of franchisee churn strongly suggests systemic problems, potential unprofitability, or significant franchisee dissatisfaction.

Potential Mitigations

  • It is imperative to contact a significant number of former franchisees listed in Exhibit I to understand why they ceased operations.
  • A franchise attorney can help you understand the gravity of the disclosed turnover and non-operational numbers.
  • Discussing these figures with your business advisor is essential before making any commitment.
Citations: Item 19, Item 20 Tables 1 & 3, Exhibit O

Rapid System Growth

Low Risk

Explanation

This risk was not identified. The data in Item 20 shows a net decrease in the number of franchised outlets over the past three years, not rapid growth. Rapid growth can strain a franchisor's ability to provide adequate support, so its absence here is notable, though the shrinkage presents its own set of risks.

Potential Mitigations

  • When evaluating any franchise, it's wise to have a business advisor help assess the franchisor's growth rate in relation to its support infrastructure.
  • Your accountant can review the franchisor's financial statements to see if they are reinvesting in support systems.
  • An attorney can review the franchisor's support obligations in the franchise agreement.
Citations: Not applicable

New/Unproven Franchise System

Low Risk

Explanation

This risk was not identified, as the Jani-King system is well-established, having been in business for several decades. An unproven system carries higher risks related to brand recognition and operational methods. You should still verify the experience of the current management team with your business advisor.

Potential Mitigations

  • For any franchise opportunity, a business advisor can help you investigate the franchisor's history and the track record of its business model.
  • Your attorney should review the experience of the key executives disclosed in Item 2.
  • An accountant can analyze the system's financial performance over time if data is available.
Citations: Not applicable

Possible Fad Business

Low Risk

Explanation

This risk was not identified. Commercial cleaning is a long-standing, essential service industry and is not considered a fad. A fad-based business carries the risk that consumer interest will decline, potentially harming your long-term investment even if your contractual obligations to the franchisor continue.

Potential Mitigations

  • With any business, it is important to have a business advisor help you research the long-term market demand for its products or services.
  • Your financial advisor can help assess the business model's resilience to economic shifts.
  • An attorney can review the franchise term and your obligations.
Citations: Not applicable

Inexperienced Management

Medium Risk

Explanation

The franchisor entity, Jani-King DC, discloses in Item 1 that it has never operated a commercial cleaning business itself; its experience is limited to selling and supporting franchises. While its executives have experience within the broader Jani-King brand, the lack of direct operational experience at the franchisor level could impact the quality and relevance of the support and guidance you receive.

Potential Mitigations

  • A thorough review of the backgrounds of the individual executives in Item 2 with your business advisor is crucial.
  • Speaking with current franchisees about the quality and practicality of the operational support they receive is highly recommended.
  • Your attorney can help clarify the specific support obligations outlined in the Franchise Agreement.
Citations: Item 1, Item 2

Private Equity Ownership

Low Risk

Explanation

The FDD discloses that the ultimate parent is a holding company, but does not state it is a private equity firm. When a franchisor is owned by a PE firm, there can be a risk that short-term investor returns are prioritized over the long-term health of the franchisees and the system.

Potential Mitigations

  • With any franchise, understanding the ownership structure is important, which a business advisor can help you research.
  • Your attorney should review the franchisor's right to assign the franchise agreement, which could impact you if the system is sold.
  • Speaking with current franchisees about any changes in system focus or support is a practical step.
Citations: Not applicable

Non-Disclosure of Parent Company

Low Risk

Explanation

This risk was not identified, as the FDD discloses the parent companies and provides consolidated financial statements for Jani-King International, Inc. It's important that a franchisor discloses parent entities and their financials when required, as this information is critical for assessing the overall stability and backing of the franchise system.

Potential Mitigations

  • Your attorney should always verify that the corporate structure disclosed in Item 1 appears complete and that required financial statements for parent companies are included.
  • An accountant can help assess the financial health of any parent company that guarantees the franchisor's performance.
Citations: Not applicable

Predecessor History Issues

Low Risk

Explanation

The franchisor does not disclose any predecessors in Item 1. When a franchisor has predecessors, it is important to review their history for any signs of trouble, such as litigation or high franchisee failure rates, as these issues could be inherited by the current franchisor.

Potential Mitigations

  • When a predecessor is disclosed, it's wise to have an attorney review their litigation and bankruptcy history in Items 3 and 4.
  • A business advisor can help you research the predecessor's reputation and track record.
  • Speaking with long-term franchisees about their experience under the predecessor is also valuable.
Citations: Not applicable

Pattern of Litigation

High Risk

Explanation

Item 3 reveals an extensive and concerning history of litigation. This includes numerous class action lawsuits brought by franchisees alleging employee misclassification, fraud, and other claims, resulting in multi-million dollar settlements. The franchisor and its affiliates have also faced actions from the Department of Labor and state regulators. This pattern suggests a high level of systemic conflict with franchisees and a business model that is subject to significant legal and regulatory challenges.

Potential Mitigations

  • It is absolutely critical that you discuss the entire litigation history disclosed in Item 3 with a franchise attorney to understand the risks.
  • Ask your attorney about the implications of the recurring franchisee misclassification claims.
  • A business advisor can help you assess how this history of conflict might affect the franchisor-franchisee relationship.
Citations: Item 3
2

Disclosure & Representation Risks

Total: 15
8
0
7

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

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3

Financial & Fee Risks

Total: 10
3
6
1

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

4

Legal & Contract Risks

Total: 16
8
5
3

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

5

Territory & Competition Risks

Total: 5
2
1
2

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

6

Regulatory & Compliance Risks

Total: 10
3
1
6

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

7

Franchisor Support Risks

Total: 4
1
3
0

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

8

Operational Control Risks

Total: 12
3
5
4

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

9

Term & Exit Risks

Total: 18
7
6
5

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.

10

Miscellaneous Risks

Total: 1
1
0
0

Example Risk: Franchisee Financial Obligations

Blue Risk

Explanation

This risk involves the financial obligations that a franchisee must meet, including initial fees, ongoing royalties, and other required payments. Understanding these obligations is crucial for long-term success.

Potential Mitigations

  • Carefully review the Franchise Disclosure Document (FDD) and consult with a franchise attorney to fully understand all financial commitments before signing.
  • Conduct regular risk assessments
  • Implement monitoring and reporting systems

Unlock Full Risk Analysis

Purchase the complete risk review to see all 102 risks across all 10 categories.