Jani Are YOU INSANE
This has got to be the worst franchise rip off ever. Here is there game, they get you to buy a franchise and provide you with small accounts. They don't want you to be successful with these accounts because then they can't take them back from you and re sale them to a new franchise. The real sucker in the whole game is the costumer trying to find a cheap cleaning service. You get what you pay for! If you have the money to invest in a Jani King franchise, invest it in your own ability to get your own accounts and properly register your business. If your scared of losing assets then incorporate! Oh by the way, Coverall is no different!
Jani King the biggest rip off ever!! Start your own business and register it yourself. But stay the hell away from Jani King!!
PLEASE DON'T DO IT! JANI KING FRANCHISE IS A RIP OFF!
marsutt, welcome to A2k.
i'm curious, where do you stand on the whole jani king issue?
jani king in illinois
I've had jani-king for over 11 years and it's the worst buisness to have.Everyone's right they definantly under bid and exspect you to have the place your cleaning look like it was just built.So many people have asked me if they should get a franchise and i tell them if they want to ruin thier lives then go ahead.i just recently recieved an account and on it it said the place takes 2hrs n 42 min. to do it actually took 5hrs and with two people so divide that into two people thats ten hours,the place was huge,so after a week i sent in my 2 week notice and after a month they still didnt find someone else to take it over.so i just stopped going then they toke it serious and their in house cleaning crew toke over until they find someone.11 years ive been putting up with their bull.their always right and your always wrong.no one can ever give a straight answer.
if anyone has any questions at al just ask like i said ive been with them for 11yrs,and my cousin worked in the office for like 2 years and she quit recently cause she couldnt handle all the scamming they were doing.
Re: Thanks Cleanup - One More Question
thickhead wrote:If you care to send me a PM I will let you know how I was able to get out of the mess you also find yourself in.
Thickhead, please could you contact me at
[email protected] with details of how you managed to get out of your contract with Jani-King.
Thanks.
Tylerdurden
I will knock up some info over the weekend and e-mail you.
Jani King court case...
You guys might find this article interesting about a court case jani king lost because of a violation of US federal trade commission rules ($100,000 paid out)
http://www.ftc.gov/opa/1995/07/janiking.shtm
HellOnEarth...
Hi Guys,
I am going to be very careful here but would appreciate it if Thickhead could email me at
[email protected] with details on how to help me as may be in same situation as Tyler.
Thanks.
BigDawg
Done. I hope this might help you.
Janiking UK
Hi Guys, I to have been foolish enough to sign up for a Janiking franchise. But a week later found this site and changed my mind. Now would you believe it Janiking are taking me to court for the full franchise fee (£100+k). I have a solicitor but if anyone as information that may help it would be much appreciated.
Bigt
BigT
At least you have seen a solicitor..better late than never. Isn't there a cooling off period ?
Speak to your business manager at the bank and explain your concerns. Ask about the JK franchise failures the bank has seen. Convince your bank to withdraw their offer of the £60k business loan. Did you pay the full £40k or just a "nominal" deposit ? However much you gave them, you have lost it, unless you can prove you have been mislead.
I knew only one franchisee who was happy with JK. He has hotels in his deal, unlike other franchisees. who were stuck with a dozen or so small accounts ( pubs,clubs and restaurants).
Did you ask JK about franchisee turnover ? What did they say ?
What did they tell you about resale values ?
Have you been through the "training programme" ? This will demonstrate how inept they are.
Be brave and give them nothing more, no matter how much they threaten you.
Contact a national newspaper and seek their help. The Daily Mirror run a consumer section on Tuesdays, and they have featured JK previously. I'm sure they will be interested in your dealings with JK.
Please keep in touch with the forum and let us know how you get on. There are a couple of current franchisees actively trying to get out of their JK franchise. They have been on the site within the last few weeks. I am sure they can give you some assistance and encouragement if needed.
JK
Thanks for that, I might contact the newspaper for advice. As yet I haven't paid any money other than a small initial deposit (£1K) and training was to begin next year.
Thanks for your support, I will let you know how it goes.
Thinking about a Jani King Franchise
I am just trying to figure out if Jani King is legit or not. It seems that the management in the regional offices are what effect and influence the franchises. I am located in IL, and have spoken with a few franchisees. One of them has been a franchisee for over 14yrs, and has nothing negative to say about Jani King. No negative comments were given from anyone I talked to. I randomly called them from the back of the Jani King handbook. No one at Jani King specifically gave me their names. He explained that they offered him contracts to build his business. He broke the numbers down for me like this: 20% to Jani King (advertising, insurance, royalty, accounting, etc), 40-45% to labor costs, and the last 35-40% as net income to the owner. I guess my question is how are some franchisees successful if Jani King is a scam? Any feedback would be greatly appreciated.
Iceman24
My experience is based on the UK model. Jk are not a scam, they are legit, but the franchisee does not get what they are lead to believe.
If JK get you a contract for say $1000 invoice value per month, a rough breakdown of the costs are :
JK will take 17.5% off the top whether the customer pays or not. JK will produce and mail the invoice to the customer, but it is the job of the franchisee to ensure the invoice gets paid.The JK commission is taken from the gross monthly customer payments received.The franchisee gets whatever is left at the end of the month.So the first deduction from the invoice will be $175. If the account was won by JK they will charge $3030 ammortised over 24 months.This will cost $126 per month, again deducted automatically from the franchisees payment.If the contract is lost before the 2 years has passed, the franchisee must still pay the $3030. So far JK have taken $301.
Labour costs are usually a minimum of 55% of the monthly contract price ie $550 per month. Total costs so far $851.
The net profit at this stage is $149.
Out of this sum the franchisee needs to pay the following costs:
- Cleaning materials and equipment costs or hire charges.
- Accountancy,payroll and legal fees,
- Cost for car or van.
- Vehicle tax and insurance.
- Vehicle maintenance and fuel costs.
- Telephone/Fax/PC/Internet rental or purchase.
Whatever is left, is the net profit retained by the franchisee....not much I'm afraid.
Any complaints from the customer( valid or not) will be investigated by JK and charged to the franchisee (upto $90/hour plus travelling expenses).
So perhaps you can now appreciate that what you see, is not what you get from JK.
Thanks for the info
Thanks for the info Thickhead. I spoke with a few more franchisees yesterday. One really opened up my eyes as far as cost structure and labor costs. Thank you for your feedback as well. Based on the information that you have provided, and the information I have received from other franchisees, I am not going to purchase a Jani King franchise.
Why all the belly aching?
I have read the post on this board and I hear a lot of belly aching about Jani-King this and that! Fact is you knew what you were getting into when you signed on, if you didn't then that is your fault. I have been a JK franchise owner for 10 years now! I invested $16,750.00 for $48,000.00 of annual business. If you follow the program and work within the system you will make money. In my case I worked the business myself, I paid myself back my initial investment! Go figure, it only took me 6 months to recoup my initial investment. I learned how to bid my accounts from the sales department in the Regional Office! I could care less of the overhead 20%, I pay on a monthly basis, had it not been for Jani-King I would not be earning 10 times my initial investment on a annual basis. I have seen people come in thinking it is a get rich quick scheme, guess what this requires work, the ones belly aching on this board are probably the ones who invested 1500 bucks to start their business. Be smart people, if it was easy everyone would be doing it. For the ones who recommend going out and doing it yourself good luck! It is a tough business on your own. I enjoy not worrying about the billing and collecting, or insurance, I gladly pay my 20% I need the write off.
Re: Iceman24
thickhead wrote:My experience is based on the UK model. Jk are not a scam, they are legit, but the franchisee does not get what they are lead to believe.
If JK get you a contract for say $1000 invoice value per month, a rough breakdown of the costs are :
JK will take 17.5% off the top whether the customer pays or not. JK will produce and mail the invoice to the customer, but it is the job of the franchisee to ensure the invoice gets paid.The JK commission is taken from the gross monthly customer payments received.The franchisee gets whatever is left at the end of the month.So the first deduction from the invoice will be $175. If the account was won by JK they will charge $3030 ammortised over 24 months.This will cost $126 per month, again deducted automatically from the franchisees payment.If the contract is lost before the 2 years has passed, the franchisee must still pay the $3030. So far JK have taken $301.
Labour costs are usually a minimum of 55% of the monthly contract price ie $550 per month. Total costs so far $851.
The net profit at this stage is $149.
Out of this sum the franchisee needs to pay the following costs:
- Cleaning materials and equipment costs or hire charges.
- Accountancy,payroll and legal fees,
- Cost for car or van.
- Vehicle tax and insurance.
- Vehicle maintenance and fuel costs.
- Telephone/Fax/PC/Internet rental or purchase.
Whatever is left, is the net profit retained by the franchisee....not much I'm afraid.
Any complaints from the customer( valid or not) will be investigated by JK and charged to the franchisee (upto $90/hour plus travelling expenses).
So perhaps you can now appreciate that what you see, is not what you get from JK.
Thickhead, you need to be more clear on your thoughts. You can not compare UK v. US Jani-King Franchsie. You are way off base advising people on this board, however it is your right. As a Jani-King franchise owner in the US with 10 years of experience I have earned the right to rebut your comments.
JANIKING
hAVE ANYONE WON AGAINST J.K. ARE THEIR ANY LAWYERS THAT HAS BEAT J.K.
IT SEEMS THAT EVERYONE IS HAVING THE SAME PROBLEMS WITH J.K. NOT GETTING SUPPORT WHEN THE CONTRACTS ARE GIVEN TO US IN BAD CONDITION AND THE UNDER BIDDING. IF EVERYBODY WITH A J.K FRANCHISE WORK TOGETHER MYBE IT COULD TRIGGER A CLASS ACTION LAWSUIT
ALSO IF PEOPLE GO TO THE MEDIA AND EXPLOIT J.K IT MY BE THE ANSWER. I'AM PRETTY SURE THAT THOSE EXPENSIVE SPONSORS WOULD NOT LIKE TO BE PART OF A COMPANY THAT RIPS YOU OFF
