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Business Description

We are a Massachusetts corporation incorporated in April 1995. We do business as JAN-PRO CLEANING SYSTEMS and JAN-PRO. Our principal business address is 2520 Northwinds Parkway, Suite 375, Alpharetta, Georgia 30009. Our agents for service of process are listed on Exhibit A. Our parent company is Premium Franchise Brands, LLC (formerly known as Jan-Pro Holdings, LLC), which is owned by Jan-Pro Holdings, Inc. The principal business address of both of these entities is 2520 Northwinds Parkway, Suite 375, Alpharetta, Georgia 30009. On January 28, 2005, Premium Franchise Brands, LLC acquired a majority interest in us. On September 18, 2008, Jan-Pro Holdings, Inc. acquired a majority interest in Premium Franchise Brands, LLC.

Prior Experience

We have offered Franchises since 1995. We have never operated a business similar to the Franchise; however, in the past, we have owned subsidiaries that have operated businesses similar to the Franchise. We have not offered franchises in any other line of business and have no other business activities.

Business Offered

Under our Regional Master Franchise Agreement (the “Franchise Agreement”), we grant regional master franchises (each, a “Franchise”) to qualified parties to operate under the service mark JAN-PRO and certain other trademarks, trade names, service marks, slogans and logos (the “Proprietary Marks”). Your Franchise must be operated within the geographic area stated in your Franchise Agreement (“Territory”). As a regional master franchisee (“Master Franchisee”), you will offer and grant unit franchises (“Unit Franchises”) to qualified parties that will own and operate businesses that provide commercial, industrial and institutional cleaning and maintenance services and related services (“Services”) for janitorial customers (“Customers”). You will solicit and establish Customers for Services within your Territory that your Unit Franchisees’ businesses will service. You also will provide certain support services for your Unit Franchisees.

Initial Fees

Initial Franchise Fee The initial franchise fee for a Franchise is based primarily on the population of the Territory granted, and must be paid when you sign the Franchise Agreement. All Master Franchisees do not pay the same initial franchise fee. The formula will vary according to the density of the population related to the total area, the number of business counts within the total area, or for other demographic considerations. The initial franchise fee ranges from a minimum of $50,000 to $600,000, but may be more depending on the population in your Territory. In the fiscal year ending September 30, 2018, we sold 1 Franchise and the initial franchise fee was $120,000. The initial franchise fee is not refundable. We may elect to finance a portion of the initial franchise fee over our minimum of $50,000. If we provide financing, the amount financed is payable in equal monthly installments over 24 to 48 months depending on your financial circumstances and your aptitude for the Franchise. You must sign a Promissory Note that will provide for payment of the amount due with interest at 10% per annum. Additional Attendees at Initial Training We charge no fees for our initial training program for up to 2 trainees. We may charge you $15,000 for each additional trainee. This fee is uniform for all franchisees and is not refundable. Jan-Pro VetFran Incentive We participate in the International Franchise Association’s Veterans Transition Franchise Initiative (“VetFran”) program to provide franchise opportunities to qualifying veterans. The purpose of the VetFran program is to honor those men and women who have served in the U.S. military. The VetFran program was developed to help veterans transition to civilian life. VetFran is a voluntary effort of International Franchise Association member-companies that is designed to encourage franchise ownership by offering financial incentives to honorably discharged veterans. Our VetFran incentive provides a 10% discount off the initial franchise fee due under our Franchise Agreement. This incentive may not be combined with any other incentive program and applies only to the first Franchise Agreement. To qualify, a prospective franchisee must request the Jan-Pro VetFran incentive at the time of application; must meet our then-current qualifications for new franchisees; the franchise must be at least 51% legally and beneficially owned by persons meeting our qualifying veteran status; and the prospective franchisee may not have previously received a Veterans incentive from us. You may meet our qualifying veteran status if you are a veteran who has received an honorable discharge from the U.S. Military and you must give us a copy of your Form DD 214 showing your status as an honorably discharged veteran. We may discontinue the Jan-Pro VetFran Program at any time.

Financing

The initial franchise fee is paid in full when you sign the Franchise Agreement; however, we may, at our option, finance a portion of the initial franchise fee over the minimum initial franchise fee of $50,000 to assist in the purchase of a Franchise. We do not provide financing for the payment of the minimum initial franchise fee of $50,000. If we provide financing, the amount financed will be payable in equal installments over 24 to 48 months depending on your financial circumstances and your aptitude for the Franchise. You must sign a Promissory Note in our favor that will provide for payment of the amount due with interest at 10% per annum. Our Promissory Note is attached to the Franchise Agreement as Exhibit A. If you are a partnership, limited liability company or corporation, all of your partners, members or shareholders must guarantee payment of the Promissory Note. Our Guarantee is attached to the Franchise Agreement as Exhibit B. The Promissory Note (and all of your other obligations to us under the Franchise Agreement and other agreements) is secured by all of the assets you own and use in your Franchise. We do not offer financing for any other purpose. You may prepay the Promissory Note with no prepayment penalty. If you default under the Promissory Note or the Guarantee, or if you are in default under your Franchise Agreement, we may demand immediate payment of all principal and interest due under the Promissory Note. In addition, the interest rate on the Promissory Note will increase to the highest legal rate. You also may be liable for our attorney fees in collecting under the Promissory Note. You will not waive any defenses or other legal rights under the Promissory Note. We do not receive direct or indirect payments for arranging financing. Commercial paper from franchisees has not been sold or assigned to anyone and we have no plans to do so; however, we reserve the right to do so. We do not arrange financing from other sources. We do not receive direct or indirect payments for placing financing. We do not guarantee your obligations to third parties.

Franchisee Revenue and Profit

The below data is historical data for existing master franchises. Actual results vary from master franchise to master franchise. Conduct an independent investigation of the expenses you will incur in operating your master franchise. Master franchisees or former master franchisees, listed in this disclosure document, may be a source of this information. Revenues, costs and profits can vary considerably due to a variety of other factors, such as demographics and population of the master franchisee’s territory; competition from other commercial janitorial service providers in or near the master franchisee’s territory; economic conditions in the master franchisee’s territory; advertising and promotional activities; and the master franchisee’s business abilities and efforts. On your written request, we will provide to you written substantiation of the data used in preparing these financial performance representations. Data From Master Franchisees’ Audited Financial Statements The below information is presented for our United States master franchisees that had been open and operating for all of 2017 and 2018 under the same ownership. There are 73 master franchises in the below sample. Of the 88 Master Franchises identified in Item 20, 10 were excluded because they had not been in continuous operation under the same ownership during all of 2017 and 2018, 4 were excluded because they had not submitted their current audited financial statements to us, and 1 were excluded because we could not identify the below information based on the presentation format of the master franchisee’s audited financial statements.