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Business Description

We are a Wisconsin corporation formed on April 25, 2013. We conduct business under our corporate name FOCUS FRANCHISING, INC. D/B/A JANI-KING OF MADISON. Our principal place of business is 4009 Felland Road #105 Madison, WI 53718. Our registered agent for service of process is Jeffrey Weyker, 4009 Felland Road #105 Madison, WI 53718. On June 1, 2013, we entered into a Regional Franchise Agreement with JANI-KING FRANCHISING, INC. (“JKF”), which granted us the right to offer JANI-KING franchises in Madison and the surrounding area which includes the Wisconsin counties of Columbia, Dane, Green Rock and Sauk (the “Madison Area”). Other predecessors of the JANI-KING system in the Madison, Wisconsin area before us were Diamond Franchising, Inc. from September 2004 to June 2013, Pemoba, LLC from January 2003 to July 2004, VSK, Inc. from July 2000 to January 2003, and Marcar, Inc. from November 1997 to July 2000. JKF has assigned all franchise agreements to us purchased within the Madison market. See Item 20 for more information about JANI-KING franchisees. We consider these companies our predecessors.

Prior Experience

We are in the business of franchising comprehensive commercial cleaning and maintenance businesses like the type we are offering to you. We have been offering JANI-KING franchises in the Madison Area since July 2013. We do not engage in any other businesses, and we have not offered franchises in any other lines of business. JKF is a wholly owned subsidiary of JK International (“JK Int’l”). Both JKF and JK Int'l were incorporated in Texas on October 1, 1985. JKF shares JK Int’l’s principal business address at 16885 Dallas Parkway, Addison, Texas 75001. JK Int’l is a wholly owned subsidiary of JAC Holdings, LLC, a Texas limited liability company. In addition to wholly owning JKF, JK Int’l also wholly owns Jani-King, Inc., which was incorporated in Texas on March 11, 1983, and will be referred to in this Disclosure Document as “JKI.” JAC Holdings, LLC, JK Int’l and JKI each have their principal business address at 16885 Dallas Parkway, Addison, Texas 75001. JAC Holdings, LLC is a holding company and does not directly engage in the business of franchising comprehensive commercial cleaning businesses. Neither JK Int’l nor JKI directly engages in the business of franchising comprehensive commercial cleaning businesses, and neither offers any franchises substantially similar to our business nor in any other line of business.

Business Offered

We grant franchises for the performance of complete cleaning and/or maintenance related services, including commercial, industrial, and institutional cleaning and/or maintenance services and the distribution of related supplies and equipment under the name JANI- KING. As a JANI-KING franchisee, you have the right to solicit business and to provide cleaning services (include carpet cleaning, hard floor care, trash disposal, window washing, wall cleaning, and other specialty cleaning services) to customers located in theMadison Area on a daily, weekly, or monthly schedule. You will not have a protected territory. Other JANI-KING franchisees also will have the right to solicit business and provide cleaning services under the JANI-KING marks in the Madison Area. If you already own one of our franchises and you purchase additional franchises, you will be required to sign the then current franchise agreement and the conditions existing at the time of the purchase will control the franchise relationship. You will use the methods, procedures and products developed under the JANI-KING marks, and we will provide support services for you in the Area, described above. We will offer you within a certain number of days the right to provide service to commercial cleaning contracts obtained by us with varying amounts of gross monthly billings. We call the amount of cumulative gross monthly billings (the sum of the monthly amounts billed to all accounts to which your franchise is offered the right to service) and the contracts which we will offer to you to service the “Initial Business.” We call the number of days during which we are required to offer you the Initial Business the “Initial Offering Period.” We provide a limited guarantee for the Initial Business for a maximum of 12 months if you service the accounts properly. Under the guarantee, if you service the accounts properly, we will replace the Initial Business lost (unless it is lost due to your actions or omissions) for a time equal to 12 months less the amount of time you provided service to the account lost. See Item 11 for more information about the Initial Business offered to you, and the circumstances when we might replace an account. The Initial Business and the Initial Offering Period varies based on the level of plan (“Plan”) you decide to purchase, as does the applicable Initial Franchise Fee. (See Item 5 for more information about the different Plans and applicable fees.) We will offer you the right to perform services under the terms of commercial cleaning contracts with a cumulative total amount of InitialBusiness identified in thePlan you select,within the period of time shown as the Initial Offering Period. The Initial Offering Period will begin when you successfully complete the initial training program to our satisfaction, provide proof that your business entity is in existence and in good standing, provide proof of registration with all applicable taxing authorities (including federal, state and local taxing authorities), obtain all required equipment and supplies (including a personal digital assistant (“PDA”) or smart phone with mobile email access), and provide proof of required insurance. We do not guarantee that the amount of Initial Business of the Plan you purchase will reach that amount or remain at that amount for the entire term of the Franchise Agreement. We are under no obligation to maintain the amount of Initial Business throughout the term of the Franchise Agreement. You should also be aware that the cumulative total billing for any specific month may not equal the total sum of the Initial Business because: (1) the Initial Business may be offered to you in stages during the Initial Offering Period; (2) you may not accept all of the accounts offered; (3) accounts may cancel the contract or request a change of franchisees due to your poor performance; or (4) the account may move or go out of business before the end of the contract period. To effectively service these accounts, you must adhere to the quality standards associated with the JANI-KING marks, maintain good customer relations, and maintain industry standard commercial cleaning production rates. Each month, you may provide service to customers that have contracted for commercial cleaning services. At the beginning of each month, we will invoice each customer for the service to be provided that month. All of the customer billing and accounting for services you provide will be performed by us each month. We will issue to you, on the fifth day of each month (unless the fifth falls on a holiday or weekend), a monthly franchisee report. The report will list all services performed by you and all money collected by us for the services performed by you. We will deduct all royalty fees, accounting and sales fees, advertising fees, Business Protection Plan fees, technology fees, and any other charges such as supply purchases and equipment leases from your monthly revenue and issue you a check in the amount of the difference.

Initial Fees

The Initial Franchise Fee varies depending on the Plan you decide to purchase and is determined by the amount of Initial Business that comes with each Plan. We offer a 10% discount to qualified United States military veterans. The Initial Franchise Fee due for each Plan, except for any applicable sales tax, is the minimum total amount you must pay to us when you purchase your franchise. Sales tax is computed in accordance with state and local laws. In order to provide additional support to the veterans of the United States military, we offer a 10% discount off the Initial Franchise Fee to qualifying veterans. The program is available for those veterans who have received a discharge (other than dishonorable) as well as any active duty personnel. The franchise must be operated under a corporation or limited liability company, and the veteran participant must maintain at least a 51% ownership interest in such entity. A copy of the form DD-214, evidencing the status of a participating veteran, must be submitted with the franchise agreement. Except as described above, the Initial Franchise Fee is not refundable and is fully earned by us when paid. However, if we fail to offer you the right to provide service under contracts with cumulative total initial gross monthly billings equal to the value of the Initial Business for your Plan within the Initial Offering Period described in Item 11, we may refund an amount equal to two times the amount of Initial Business not offered to you, less any amount you owe us or our affiliates. A refund will first be applied to any current, unpaid fees or charges you owe that would result in a negative due on your Franchisee Report, and then to any other outstanding balance you owe to us or our affiliates, including any lease obligations owed to our affiliates. We will pay the remaining sum, if any, to you. A refund under this provision fulfills our obligation to offer you any remaining portion of the Initial Business used to calculate the refund. Equipment Purchases and Leases You must acquire all the required commercial cleaning equipment and supplies before you will be authorized to service any accounts as a JANI-KING franchisee. The Supply and Equipment Package may be purchased from or through us, subject to shipping restrictions, or from any other source that sells commercial grade cleaning products and equipment. You are not required to purchase the Supply and Equipment Package from us or our affiliates. However, if you choose to purchase the Supply and Equipment Package from us, the cost, based on price rates in use as of December 31, 2017 is approximately $3,500.00 and is payable in cash. The Additional Electric Equipment required may also be leased from us. If the equipment is leased from us the total approximate cost, depending on which equipment package is chosen, ranges from $1,845 to $5,481 based on the rates in use as of April 1, 2016. Total lease payments include a down payment with an approximate range from $232 to $728 and 12 monthly payments with an approximate range from $116 to $364 depending on which equipment package is chosen. Once you make the final lease payment you own the equipment.

Financing

We are not obligated to offer financing for the Initial Franchise Fee but may offer financing in the future. (See Item 5 for purchasing options). Equipment Lease We provide lease arrangements for most of the equipment you will use in your franchise. We may modify the terms and conditions of any leasing arrangement as we consider appropriate. Lease arrangements may vary depending on a particular piece of equipment leased. Our standard Equipment Lease Agreement is included in this Disclosure Document as Exhibit D. The period of repayment will depend upon the equipment leased, but is usually from 12 to 24 months. The security interest required is a personal guaranty, the equipment leased, and any insurance proceeds which may be due to you upon destruction or theft of the equipment. There is no penalty for prepayment of the remaining amount due under the Equipment Lease Agreement. Your potential liabilities upon default include our costs for correcting the default, termination of the lease, our repossession of the equipment, the application of your security deposit toward any amounts owed, legal costs, and any other remedy allowed by law, including the cancellation of your franchise agreement. As a corporation, or other limited liability entity, the lease must be guaranteed individually by all owners, members, manager, officers and directors. If you are married and your spouse is not a partner in the franchise business, your spouse must personally guarantee the lease. Once you make the final lease payment the equipment is yours. Our Guarantee of Your Supply and Equipment Purchases We negotiate purchase arrangements, including price terms and a limited, guaranteed credit line, with designated and approved suppliers on behalf of the franchisees in our region. For these designated suppliers, we guarantee on your behalf up to $300 on account for ongoing supply purchases. We also provide an automated payment service for your supply and equipment purchases from these designated suppliers. Our criteria for supplier approval are based on quality controls, the capacity to supply your needs promptly and reliability, price management, and product knowledge and support. If a supplier fails to maintain the criteria required for designated status, we will notify you prior to the reporting period in which the designation will be revoked. There is no charge to you for this guarantee, but we receive a rebate from the designated suppliers that ranges from 5% to 10% of the amounts you purchase We reserve the right to assign or factor any promissory notes or leases. Except as disclosed in the information above about our arrangements with designated suppliers, we do not receive direct or indirect payments for the placement of financing. Except as disclosed in the information above about the limited guaranty we provide to designated suppliers, we do not guarantee your obligations to third parties.

Franchisee Revenue and Profit

ANALYSIS OF ACTUAL INITIAL BUSINESS OFFERING EXPERIENCE This analysis sets forth information about our performance of the obligation to provide Initial Business for certain JaniKing franchises. The analysis is based on data as of December 31, 2017, reported for 4 franchisees that either purchased their franchise between January 1, 2017 and December 31, 2017 and their offering period ended in 2017 or they purchased their franchise prior to 2017 and their offering period ended in 2017. Under the terms of the Franchise Agreement, we agree to secure and offer you the opportunity to service signed commercial cleaning and/or maintenance contracts that in total would provide a minimum in gross monthly billings in an amount defined as the “INITIAL BUSINESS.” These contracts will be secured and offered within the number of days identified in the Franchise Summary of the Franchise Agreement as the “INITIAL OFFERING PERIOD,” such time period beginning on the date all required equipment and supplies listed in the “Supply and Equipment Package” and “Additional Electric Equipment” have been obtained and the Acknowledgment of Completion of Training is signed, or a later date as discussed later in this item. The schedule below is a sample of Plans A through E-90, other Plans with more Initial Business are available: The right to provide service to these contracts will be offered during the “INITIAL OFFERING PERIOD,” which time period begins on the date you complete the initial training program to our satisfaction, provide proof that your business entity is in existence and in good standing, provide proof of registration with all applicable taxing authorities, obtain all required equipment and supplies (including a PDA or smart phone with mobile email access), and provide proof of required insurance. Under the “A” Plan the Initial Offering Period is 180 days. Under each level of the “E” Plan, the Initial Offering Period is calculated as the total of: 900 days, plus an additional 360 days for each higher level of the “E” Plan, beginning with level E-30. Example: E-60 [900 + 360 (2nd level)] = 1260 days E-90 [900 + 720 (3rd level)] = 1620 days, etc. The franchises reported in this analysis are listed by ranges of Initial Business obligated to be offered in order to provide a more meaningful presentation of the relevant information about the offering of accounts for Initial Business by JANIKING. The time period in which the Initial Business is contractually required to be offered is the Initial Offering Period stated in the Franchise Agreement, while the average time period within which the Initial Business was offered represents the actual number of days within which JANI-KING had secured and offered cleaning contracts with gross monthly billings that equal or exceed the total obligation required under each Franchise Agreement for the specified range. Our obligation to offer you Initial Business is not a guarantee that you will actually realize gross income in the amount of the Initial Business. Our obligation is only to offer you the specified amount of Initial Business. You may decline any or all of the Initial Business offered, in which case you will realize no income from the Initial Business offered. The amount of gross income that you realize as a result of Initial Business also may be reduced as a result of it being offered in stages, or as a result of contracts being canceled by customers before the end of the contract period. The amount of gross income that you actually realize will be determined by multiple factors including your ability to solicit business on your own account, our ability to offer (and your willingness to accept) Additional Business, and the quality of your performance. Our obligation to offer you Initial Business is not a guarantee that you will realize a net profit from the operation of the Franchised Business. Your net income will be determined by the amount of your actual earned income and operating expenses including, finder’s fees, debt service, rent, employee wages, taxes, and other expenses. You should particularly note the following: THE INFORMATION CONCERNING FRANCHISEE INITIAL BUSINESS SHOULD NOT BE CONSIDERED AS THE ACTUAL OR POTENTIAL SALES, COSTS, INCOME OR PROFITS THAT YOU WILL REALIZE. YOUR SUCCESS WILL DEPEND LARGELY UPON YOUR OWN ABILITY, AND THE INDIVIDUAL FINANCIAL RESULTS ACHIEVED BY YOU MAY DIFFER FROM THE FRANCHISEE INFORMATION STATED IN THIS DISCLOSURE DOCUMENT. THEREFORE, WE DO NOT REPRESENT THAT ALL FRANCHISEES CAN EXPECT TO ACHIEVE THESE GROSS BILLINGS, OR ANY PARTICULAR LEVEL OF SALES, COSTS, INCOME OR PROFITS, OR ANY INCOME THAT EXCEEDS THE INITIAL PAYMENT FOR, OR INVESTMENT IN, THE FRANCHISED BUSINESS. WE HAVE WRITTEN SUBSTANTIATION IN OUR POSSESSION TO SUPPORT THE INFORMATION APPEARING IN THIS ITEM 19 AND SUCH SUBSTANTIATION WILL BE MADE AVAILABLE TO YOU ON REASONABLE REQUEST. THE TOTAL REVENUE, AND THE TOTAL GROSS BILLING FOR ANY SPECIFIC MONTH, REALIZED BY YOU MAY NOT BE DIRECTLY RELATED TO OUR PERFORMANCE OF OUR OBLIGATION TO OFFER THE INITIAL BUSINESS REQUIRED BY THE FRANCHISE AGREEMENT. THE AMOUNT OF REVENUE IS AFFECTED BY MANY FACTORS, SUCH AS (1) THE INITIAL BUSINESS MAY BE OFFERED IN STAGES DURING THE INITIAL OFFERING PERIOD; (2) YOU MAY NOT ACCEPT ALL OF THE ACCOUNTS OFFERED; (3) ACCOUNTS MAY CANCEL THE CONTRACT OR REQUEST A CHANGE OF FRANCHISEES DUE TO POOR PERFORMANCE BY YOU; OR (4) THE ACCOUNT MAY GO OUT OF BUSINESS BEFORE THE END OF THE CONTRACT PERIOD. Other factors that affect the amount of revenue you realize include the quality of management and service, the rate of cleaning production you achieve; the extent to which you finance the acquisition and/or operation of the franchise, your legal, accounting and other professional fees; federal state and local income, gross profits or other taxes; discretionary expenditures; labor costs, and accounting methods used. We will make a good faith effort to secure and offer accounts to you as soon as possible, but we will have the total period to offer the Initial Business under each Plan, and we are not obligated to offer any portion of the Initial Business before the end of that time. We calculate the Initial Offering Period from the date you sign the Acknowledgment of Completion of Training and you obtain all required equipment and supplies. The actual time to secure and offer the Initial Business to you may, at our sole discretion, be automatically extended under certain conditions. Item 11 of this Franchise Disclosure Document has a detailed explanation of those conditions, but they are summarized as follows: (1) upon your written request; (2) you are in default of the Franchise Agreement; (3) upon a transfer or cancellation due to non-performance of an account accepted by you as Initial Business; or (4) you fail to comply with policies or procedures. All accounts offered will apply toward the minimum amount of business as specified in your Franchise Agreement, whether or not the offered business is accepted or declined by you. Our obligation is to secure and offer those accounts to you within the specified time. However, you might choose not to accept some of the accounts offered. That is why the Franchise Agreement says that we will secure and “offer” those accounts to you. We can only make a good faith effort to offer the amount of business for the Plan specified, and you must choose to accept or decline the “offer.” Under a situation where you either decline an offer of an account or an account cancels at no fault of you, we are relieved of our obligation regarding the Initial Offering Period for that amount of gross monthly billings, however, we will at some point in the future, offer that amount of contract billings to you. If an account cancels or is transferred from you due to non-performance, theft, your failure to service the account properly, customer relations problems caused by you, or your failure to comply with JANI-KING Policies and Procedures, the account will not be replaced. If an account cancels at no fault of yours before you service the account for 12 full months, the full gross monthly billing value of that account will be replaced within a reasonable period of time by one or more accounts until a cumulative total of 12 full months of billing between both the original account and any replacement account occur (See Item 11: Transfers or Cancellation of Initial Business). There is no other obligation for us to replace the contracts if the contracts are canceled before the full term. If we are unable to secure and offer you the full amount of Initial Business within the time frame allocated for the Initial Offering Period in the Plan you purchase, an amount equal to two times the amount of Initial Business not offered to you will be refunded. Any refund will be first applied to any outstanding balance owed to us or LEASING, with the remaining sum, if any, paid to you. A refund under this provision will fulfill our obligation to offer any remaining portion of the Initial Business.