Jan-Pro FDD Item 6 is the section of the Franchise Disclosure Document that lists every ongoing fee a franchisee will pay after the initial franchise fee of $1,250 to $50,000. For most prospective Jan-Pro franchisees, this is where the true cost of operating a commercial cleaning franchise becomes apparent, particularly because Jan-Pro’s master franchise model creates a two-tier fee structure that is fundamentally different from a standard franchise. At Lopes Law LLC, we routinely review Jan-Pro FDDs for prospective franchisees, and the layered fee obligations disclosed in Item 6 are among the most critical issues we identify during the engagement.

This guide breaks down exactly what Jan-Pro discloses in Item 6, explains how the master franchise model compounds the fee burden on unit-level franchisees, and walks through the specific line items that every buyer needs to understand before committing capital to a Jan-Pro franchise. With over 8,000 franchisees operating under this system, the financial reality of Item 6 affects thousands of small business owners across the country.

What Is FDD Item 6 and Why Does It Matter for Jan-Pro?

Item 6 of any Franchise Disclosure Document is titled “Other Fees.” It is required by the FTC Franchise Rule (16 C.F.R. Part 436) and must disclose every recurring fee, contribution, or payment obligation the franchisee will owe during the term of the franchise agreement. Item 5 covers the initial fees. Item 6 covers everything that comes after.

For Jan-Pro specifically, Item 6 is critical because the master franchise model creates fee obligations that flow to two separate entities: the national Jan-Pro franchisor and the regional master franchisor. Unlike a standard franchise where you pay one royalty to one franchisor, Jan-Pro’s structure means your fees are split between layers of management, and the unit-level franchisee bears the cost of both. This is not unlike the kind of layered financial exposure we have seen lead to significant losses in other franchise systems. Consider that Dickey’s Barbecue Pit had 27 SBA loan defaults in a single year, and Patrice & Associates reported a 31% failure rate among its franchisees. When fee structures are opaque or layered, the risk of financial distress increases substantially.

Understanding every line item in Item 6 is not optional. It is the difference between making an informed investment decision and discovering, after you have committed, that your margins are thinner than you expected in a business with already tight margins.

What Fees Does Jan-Pro FDD Item 6 Disclose?

Jan-Pro’s Item 6 covers a range of ongoing fees. Here is a breakdown of the major categories disclosed:

Each of these line items deserves separate analysis. Let us walk through the most consequential ones.

The Royalty: 8% to 10% of Gross Sales

Jan-Pro charges a royalty of 8% to 10% of gross sales, which is on the higher end of the commercial cleaning franchise industry. The rate depends on the plan tier the franchisee selects, with lower-investment plans typically carrying a higher royalty percentage. For a Jan-Pro franchisee generating $5,000 per month in gross revenue, a 10% royalty equals $500 per month, or $6,000 annually. At $10,000 per month, the royalty is $1,000 monthly, or $12,000 annually.

This royalty is calculated on gross sales, not net profit. Whether you earn a healthy margin or break even in a given month, the royalty is owed on every dollar that comes through. In a business where labor is the primary cost and margins can be thin, an 8% to 10% royalty is a substantial recurring obligation.

Cleaning Supply Markups: The Fee That Looks Like a Purchase

Jan-Pro requires franchisees to purchase cleaning supplies, chemicals, and certain equipment from approved sources, which typically means buying from Jan-Pro itself or from the regional master franchisor. These supplies are sold at prices that include a markup over what the same products would cost from independent suppliers or wholesale distributors.

While this is disclosed in the FDD, many prospective franchisees underestimate the cumulative cost. If a franchisee spends $300 per month on supplies from Jan-Pro at a 30% to 50% markup over market price, the excess cost amounts to $90 to $150 per month, or $1,080 to $1,800 per year. For a low-investment franchise where annual gross revenue may be $40,000 to $80,000, this is a meaningful addition to the fee burden.

How Does the Master Franchise Model Create Extra Costs?

Jan-Pro’s master franchise model is the single most important structural feature that prospective franchisees must understand before investing. In this model, Jan-Pro International (the national franchisor) does not sell franchises directly to individual cleaning operators. Instead, Jan-Pro sells master franchise rights to regional operators, who then sell and manage unit-level franchises in their territory.

This means the unit-level franchisee’s relationship is primarily with the master franchisor, not with Jan-Pro International. The FDD the unit franchisee receives may be issued by the master franchisor, and the fee obligations in Item 6 reflect the master franchisor’s requirements, which may include charges that the master franchisor imposes on top of the national system’s requirements.

The practical effect is a two-tier cost structure. The royalty is split between Jan-Pro International and the master franchisor. Supply purchases may generate revenue for the master franchisor. Administrative fees may be set by the master franchisor rather than the national entity. The unit franchisee pays for both layers of management, and the total cost can be higher than what a single-tier franchise system would charge for a comparable business.

Account Assignment vs. Account Acquisition

One of the most significant cost-related dynamics in Jan-Pro’s model is how cleaning accounts are assigned. Unlike a franchise where the franchisee finds and wins their own customers, Jan-Pro’s model typically involves the master franchisor assigning accounts to franchisees. The franchisee pays for this account flow through the initial franchise fee and through the ongoing royalty structure.

This creates a dependency: the franchisee relies on the master franchisor to provide the work, and the quality, size, and profitability of the accounts assigned can vary significantly. If the accounts assigned generate lower revenue than projected, the franchisee’s ability to absorb the royalty and supply costs diminishes. At Lopes Law LLC, we pay close attention to how account guarantees are structured in the franchise agreement and whether the FDD provides any data on average account revenue or retention rates.

What Is the Total Fee Burden for a Typical Jan-Pro Franchisee?

To illustrate the real financial impact of Item 6 fees, let us look at a hypothetical Jan-Pro franchisee operating at the mid-tier investment level, generating approximately $60,000 in annual gross revenue. This is a reasonable estimate for a franchisee who has been in the system for one to two years and has been assigned a stable set of accounts.

That is approximately 16% to 22% of gross sales going to franchise-related fees before the franchisee pays for labor, transportation, additional supplies, or any other operating expense. For a low-margin, labor-intensive business like commercial cleaning, these percentages can significantly compress the owner’s take-home income.

Why Have Jan-Pro Franchisees Filed Class-Action Lawsuits?

Jan-Pro has been the subject of multiple class-action lawsuits, primarily in California and Massachusetts, alleging that Jan-Pro franchisees are actually misclassified employees rather than independent contractors. These lawsuits claim that the level of control exercised by Jan-Pro and its master franchisors over how franchisees perform their work, including mandated supplies, assigned accounts, set pricing, and operational requirements, crosses the legal threshold from an independent franchise relationship into an employment relationship.

This issue is directly relevant to Item 6 fees because the fees and restrictions create a control dynamic that courts have scrutinized. When a franchisor dictates which supplies to buy, which accounts to service, what prices to charge, and how to perform the work, the argument that the franchisee is an independent business owner becomes harder to sustain. California’s AB5 legislation, which codified the ABC test for independent contractor classification, has made this issue particularly acute for Jan-Pro’s California operations.

For prospective franchisees, this legal risk is not abstract. If a court determines that Jan-Pro franchisees in a given state are employees rather than independent contractors, the implications for the franchise model, the franchisee’s legal status, and the enforceability of the fee structure could be significant. This is exactly the kind of risk a franchise attorney should evaluate before you sign. If you are already in a Jan-Pro franchise and experiencing financial difficulty, our franchise exit audit can help you understand your options.

What Should Prospective Jan-Pro Franchisees Look for in Item 6?

When reviewing Jan-Pro’s FDD Item 6, focus on these specific areas:

• Royalty rate by plan tier: Determine which royalty rate applies to your selected plan. Lower-investment plans typically carry higher royalty percentages, which can make the cheapest entry point the most expensive on an ongoing basis.
• Supply purchase requirements: Identify exactly which supplies must be purchased from Jan-Pro or the master franchisor, and compare those prices to retail or wholesale alternatives. Calculate the annual markup cost as a percentage of your projected revenue.
• Master franchisor administrative fees: Review any additional charges imposed by the master franchisor that are separate from the national Jan-Pro fees. These can vary significantly between regions.
• Insurance mandates: Confirm the required coverage types and minimums. General liability, workers’ compensation (if applicable), and bonding requirements all add to the ongoing cost.
• Technology platform fees: Determine whether technology fees are fixed or subject to increase, and what platforms you are required to use for scheduling, invoicing, and client management.
• Account replacement policies: Understand what happens if an assigned account cancels. Is the master franchisor obligated to replace lost accounts, and if so, on what timeline? Lost accounts without replacement directly reduce your revenue while your fixed fee obligations remain unchanged.
• Late payment consequences: Understand the penalties for late royalty payments, including interest charges and potential default triggers that could result in termination of your franchise agreement.

How Does Jan-Pro’s Fee Structure Compare to Other Cleaning Franchises?

Jan-Pro’s 8% to 10% royalty rate is on the higher end of the commercial cleaning franchise industry. Many competitors charge royalties in the 5% to 8% range. However, Jan-Pro’s lower entry cost (as low as $1,250 for the smallest plan tier, compared to $10,000 to $30,000 for many competitors) means the system attracts franchisees who may not have the capital to absorb higher ongoing fees.

The master franchise model is another differentiator. Most cleaning franchises operate as single-tier systems where the franchisee deals directly with the national franchisor. Jan-Pro’s two-tier model introduces additional complexity and cost. When comparing Jan-Pro to a single-tier competitor with a 6% royalty and no supply markup requirements, the total ongoing cost difference can be 5% to 10% of gross sales annually.

For investors comparing cleaning franchise opportunities, the total cost of ownership, not just the initial franchise fee or the headline royalty rate, determines profitability. A franchise attorney can help you build a comprehensive cost model that accounts for all Item 6 fees across competing systems.

Why Legal Review of Jan-Pro Item 6 Is Not Optional

The fees disclosed in Jan-Pro’s Item 6 represent contractual obligations that will continue for the full term of the franchise agreement. Given Jan-Pro’s master franchise model, the misclassification lawsuits, and the layered fee structure, the legal and financial risks of signing without professional review are significant.

At Lopes Law LLC, we review cleaning franchise FDDs regularly, including Jan-Pro and its competitors. Our flat-fee FDD validation review is $3,000 and covers all 23 items of the FDD, with particular attention to the fee structure in Item 6, the sourcing restrictions in Item 8, and the financial performance data in Item 19. For a complete overview of what that process involves, see our guide on what to expect from an FDD review.

Frequently Asked Questions About Jan-Pro FDD Item 6

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Last updated: March 11, 2026