Starting a business or buying a really bad job?
Jani-King (#8). Jan-Pro (#11). Stratus Building Solutions (#13). Vanguard Cleaning Systems(#30). ServiceMaster (#30). Bonus Building Care (#32). And Anago Cleaning Systems (#49).
Entrepreneur magazine has named 7 commercial cleaning franchises in the top 50 positions of its 2010 Franchise 500 rankings. (Coverall, which hasn’t participated since 2007, would have made 8). With low cost of entry, (often) guaranteed cleaning accounts and some of the most aggressive franchise advertising in the industry, janitorial franchises will surely continue to recruit many new franchise investors despite (and maybe because of) these tough economic times.
Are you starting a business or buying a job?
The Commercial Cleaning segment of franchising has long been a target of criticism as promoting buy-a-job scams that especially target unsophisticated, minority and/or immigrant buyers. In fact, the FTC and Maryland Attorney General issued a guide to commercial cleaning franchises. Here are some of our recent posts discussing the complaints, allegations and controversies around janitorial franchises.
FTC Guide:
FTC Guide to Buying a Janitorial Services Franchise
Jan-Pro Posts:
JAN-PRO: Janitorial Franchise Warning
JAN-PRO Franchise Complaints
JANI-KING Posts:
JANI-KING Franchise Complaints
Other Janitorial Franchises:
OCTOCLEAN Janitorial Services Franchise
CHAMPION CLEAN Using Bogus Franchise Statistics
WHAT DO YOU THINK? SHARE A COMMENT BELOW.
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I'm glad I read all this information. My hubby has been hyped and bragging and talking about this Jani-King thing for a month. Him and his friend having been "doing the blue prints" of their new business. He showed me this 10 page print out of Jani King. I love him dearly but he's the kind of guy that once you tell him something that sounds a little good he's the "SOUNDS GOOD; LET'S DO IT!" guy. Me? I'm the "WHAT'S THE CATCH?" kinda gal. Soooo, when he showed me this 10 page trash heap, I dug up my own dirt. HE WILL NOT, and I shall repeat NOT going to invest in the garbage.
Thanks for the heads up everybody!!!
I am more familiar with Jan-Pro as they hammered our local area a few years back. But recently heard the same stuff from a former Octoclean franchisee. BOUGHT a job, hired a few people, paid cash as she didn't make enough to actually pay work comp and payroll taxes. Right after she paid off all her franshise fees (which she financed) the Octoclean "family", as she called them (a father, son and daughter), pulled the plug and took the account. They said the customer was not happy. Wasn't this account purchased and thus her's to run as her own business? It's such a scam....all of them. She tried to get the business back as the customer WAS happy (she says) and was contacted by an attorney.
Here's a post we published on OctoClean. Sounds familiar:
OCTOCLEAN Janitorial Services Franchise
Pete: Amazing how you know so much about something you obviously don't have a clue about. Maybe before "jumping" into the middle of something, you might want to have a "clue" about the topic at hand.
Amazing you "don't know that much about Octoclean" but you still knew about this "lady". REALLY. Could you provide more detail, even 1st amendment at least gives a description of "his people". Of course they are all
a) illegal aliens
b) Veterans
c) Momma's ( no daughters, aunts, children)
d) Women who had bounced checks
You get the "gist" right, a little more information would be good.
To Jerry from Indiana who owns a master franchise with jan-pro.
You are still mad that jan-pro was exposed on Television on chanel 52 on a program called " Al Rojo Vivo " with reporter Maria Celeste.
Here is the link
http://msnlatino.telemundo.com/shows/Al_Rojo_Vivo/video_player?uuid=7d4cfdb4-97e0-4799-9b76-6a38d058e95f
You can also read jerry's post on the janiking section complaints Dated July 10th at 1:52 pm. You can read all about his Racist Comments !
I have talked to veterans who have been ripped-off by cleaning franchisors. One of them told me that he is getting an attorney and starting his own class action.
There is also many single Moms that have been ripped-off. Here is a link to an article that recently came out.
http://www.nytimes.com/2009/12/27/your-money/27haggler.html?_r=1
Recently a few ladies were given BAD CHECKS from jan-pro. When these checks bounced they went to jan-pros offices to see what had hapened. Then jan-pro got mad and Kicked them out of the office.
The Federal Trade commision and the Attorney General warn people about these cleaning franchisors
Jerry - Again you're a complete tool. Get a life weirdo. The individual (which I obviously made up to prove a point), contacted her former purchased account (which doesn't exist), This fake account had fired Octoclean due to the fact the attorney contacted them too (i guess in my fictious story the customer liked the franchisee but not how she was treated), the fake account fell into my companies lap. The fictious disgruntled former fired franchisee found out who got the work. And since the fake account liked the fictious franchisee we hurriedly hired her. She IS a great employee. But i made it all up so no need to follow up with your stalker-like responses.
And thats what i know about the former Octoclean San Diego operation. They are not here anymore. So, I do admit, it's only one person's opinion. (Opps fake opinion.) I am sure you know more about it than anyone else so I'll keep my thoughts to myself.
Pete: Good for you to admit that many of your stories are like those of 1st amendments and "guest". Fake and wanting to "snow ball" on those types of comments made by others.
I applaud you for your honesty. No, your opinions are certainly welcomed here, I'm sure we all feel GREAT about your recent posting of FACT in regards to the National League winning last nights game. That really helped the thirty (30) thousand plus owner/operators that performed their services for their customers all across this GREAT COUNTRY last night. I'm sure that they feel secure in you "enlightened" comments.
San Diego is certainly a great bastion of this country, has any sports team been relevant from San Diego in this past century? That's a question I personally feel you would have "valued input" on. Maybe you should find a "sports posting" site.
You have no clue about what's going on, what type of people invest in commercial cleaning franchise business, how owner/operators do/handle their business, what goes on day to day, week to week, the amount of training, amount of effort put into those owner/operators by the vast majority of "masters", what good things "corporate" have done, etc.....
Maybe you should sit on the sidelines a little longer, "guest" and 1st amendment are followers of the "disgruntled" the "SEIU supporters" the "illegal alien lovers" club.
Jerry - I'm sorry you're not a tool. You are, however, a self-indulged, passive-aggressive, narcissist. I was following the lawsuits for one reason. We are waiting for case law to help our new employee get her money back from Octoclean. She was fired for no reason. You can correct me....she had her franchise pulled, per her contract, I suppose. I am helping one person. You can keep helping the 30,000 you pontificate about. And frankly, I am giving free advice due to you pissing me off.
I've been in the game for 20+ years. Left the monster ABM to start on my own years ago. The big franchisors and the little ones like Octoclean really are running a bit scared. They don't have a LOT to lose, they have EVERYTHING to lose, based on the results of these class actions. You/they/whoever HAVE to protect this business model regardless of what I or any former franchisee may think.
In San Diego, experienced facility managers don’t turn to these types of companies. Seriously. Here is what I would say to people looking into buying a franchise.
1. Read the FTC warnings on Janitorial Franchising
2. Contact the Building Service Contractors Association International (BSCAI)and educate yourself about the industry. Ask member companies how they started, built their businesses, and then ask about whatever franchise system you are looking into. This information is free.
3. Attend a local BOMA (Building Owners and Managers) or IFMA (A professional association for facility management) meeting as a guest and ask property owners about the franchise company you are thinking about buying in to. You will get a perspective from your potential customers. Because the goal is to build a business….right? Again, totally free.
4. Contact the largest local supply company. Here the biggest is Waxie Sanitary Supply. Ask to speak to a rep and get their opinion of your possible business partner. Free.
5. VERY IMPORTANT: Don’t sign on the dotted line until you have an attorney evaluate the contract. There are pre-paid legal plans that are very affordable. Don’t let attorney costs be a factor. The janitorial franchise industry will spend to the death to protect their system, as can be seen right now! Do your due-diligence first. Ask the attorney to concentrate on a few issues…account ownership and the “outs” they have to “fire” you & how much control they have over your operations & how will you pay for the franchise. They may offer to finance this for you. Ouch. Keep in mind you bought your OWN business. Their job is to support, not run your operation.
6. Ask to see the list of all their franchisees’, current and former. This is your right. Ask to meet with a couple, that you choose, and on your own. You need honest answers. This is a huge decision. Should be no problem if these companies are run as stated.
7. What account are they trying to sell you? Try and see it first. With simple bidding techniques from BSCAI you can evaluate the account on your own. Do the numbers work in your own mind?
8. Will you have to hire employees? Who is responsible for payroll taxes, work comp, etc. These are large costs that must be considered. Do the numbers still make sense?
9. If you do make the leap….get to know your new customer. This is your livelihood. Let them know you OWN this account through the franchise agreement. Work hard, be honest, and give great customer service and that account will be yours forever. If you build a relationship with this customer you will never have to worry about getting the account pulled out from under you.
There are probably 20 more suggestions I am not thinking of. Feel free to chime in Jerry. As everything I have suggested is good sound advice…agreed?
But here is a better idea.
1. Go work for a janitorial company. See if you even like the work first. Figure out the business from the inside. The majority of our employees work part time, in the evening, supplementing another income. You can too to start out.
2. Contact your local SBA about how to open your own business. They have free training on anything a franchise would teach you business wise. Here it is done at the local community college.
3. Join BSCAI, BOMA, and IFMA – big company execs love to give free information to “little” guys. Info given by someone not trying to sell you something I will point out.
4. Get an account
5. Start off NOT $1000’s in the hole.
6. Prosper
And Please, Jerry....are you serious?!
Poll:
Even with our mediocre sports. Pick where you would choose to live.
A. San Diego
B. Wherever it is that Jerry lives
Where is Franchisylvania?
Pete: Your not quite as far off as "guest" and "1st amendment' If you had bothered to read my statements over the past month plus, they almost mirror yours in regards to "due dilligence". I have been stating that all along.
Also, I would and have suggested on numerous ocassions that they go to BSCAI website and gather information. For your information (since you already know this)
Current BSCAI members that are in the "owner/operator" business either primary or as "additional".
Office Pride
ServiceMaster
OpenWorks
Mallard Services
Bonus
Jani-King
Jan-Pro
and several others.
I'm glad to see that you are "coming around" even just a little to "my side" of things. Also, I was going to "note" that BOMA is very much a waste of time and money unless you are a "whore" such as ABM. Or unless you happen to be a minority owned/certified company.
See Pete, I can agree with you, when you agree with me. However, where you are "wrong" at and about.
Franchising in the Commercial Cleaning business has been done for over 50 Years, most only think about Jani-king, but the reality of it is, ServiceMaster was really the first true fanchise opportunity in our industry. It will be here for 50 more regardless of SEIU, Attorneys and of course the Democratic Party and OBAMA.
In regards to your supposed "friend", she doesn't have a chance of winning any lawsuit, guarantee is only in force for a period of one year, per your own statement earlier I would venture to say she had it for longer than one year. I will be the first one to admit that I don't know much about OctoClean. But if that's how they handle their business, it's no wonder they aren't a national company.