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JAN PRO - FDD UFOC ITEM 1 Detail

ITEM 1

THE FRANCHISOR AND ANY PARENTS,�� PREDECESSORS AND AFFILIATES

To simplify the language in this Disclosure Document, "us", "we", "our" or "the Company" means JAN-PRO FRANCHISING INTERNATIONAL INC., the franchisor of this business. "You" means the person who buys the franchise. We are a Massachusetts corporation that was incorporated in April, 1995. We were acquired by JAN-PRO Holdings, LLC, a Delaware limited liability company formed to acquire us, on January 28, 2005. We do business as JAN-PRO CLEANING SYSTEMS and JAN-PRO. Our principal business address is 11605 Haynes Bridge Road, Suite 425, Alpharetta, Georgia 30004-8695. Our predecessor, JAN-PRO Cleaning Systems, Inc., a Massachusetts corporation, was dissolved in September 1997. We list our agents for service of process on Exhibit A.

 

The Regional Master Franchise

 

Under this Disclosure Document, we grant regional master franchises {"Regional Master Franchises") to qualified parties to solicit and supervise unit franchises within an exclusive geographic territory (the "Territory") under the terms of our Regional Master Franchise Agreement (the "Regional Master Franchise Agreement"), a copy of which is attached as Exhibit B. As a Regional Master Franchisee, you must sell unit franchises ("Unit Franchises") in your Territory and provide your unit franchisees ("Unit Franchisees") with support services for the Unit Franchisees'' operation of their JAN-PRO Unit Franchise businesses. You will also establish commercial, industrial and institutional cleaning accounts for customers of these services ("Janitorial Customers") in your Territory to sell to your Unit Franchisees. You must prepare and use a separate Disclosure Document for the sale of Unit Franchises to prospective Unit Franchisees in your Territory and comply with all laws regulating the offer and sale of franchises. You will provide Unit Franchisees with customer accounts, and assist Unit Franchisees within your Territory, including on-site assistance, periodic and regular visits and calls, continuous advisory services to Unit Franchisees and on-going training and updates to insure that all Unit Franchisees within your Territory are in compliance with our policies and procedures. You will enter into a Unit Franchise FDD (a "Unit Franchise FDD") with each Unit Franchisee.

 

The Unit Franchise

 

You must prepare and use a separate Disclosure Document (a "Unit Franchise Disclosure Document") and a Unit Franchise FDD to grant Unit Franchisees the right to use the JAN-PRO trademarks, trade names and service marks (the "Proprietary Marks"), and the JAN-PRO programs, materials, and procedures (the "System") in the performance of complete cleaning and maintenance related services, including industrial and institutional cleaning services on a daily, weekly, or monthly basis, and the performance of specialty services such as carpet care, floor care, window washing, wall cleaning, or programs of cleaning, sanitizing, deodorizing and other related cleaning and maintenance services. The current form of Unit Franchise FDD is attached as Exhibit C.

The market for janitorial service franchises is well developed. You will compete with brokers, franchisors, sub-franchisors, independent businesses and other individuals, corporations or entities offering and selling franchises or other business�� opportunities��� in��� similar�� businesses�� with�� similar�� capital investment


 

requirements. Unit Franchisees must also compete with national and local businesses offering the same services.

We have never operated a business similar to this business. Parents and Affiliates

Although we are owned by Jan-Pro Holdings, LLC, we do not have any parent that shapes our policies or controls franchise sales or operations. We make all decisions concerning policies and franchise sales and operations internally.

We have four affiliates that sell Jan-Pro franchises: Jan-Pro of North Chicago, LLC. ; Jan-Pro of Phoenix, LLC; Jan-Pro Enterprises, LLC,; and Jan-Pro of San Antonio, LLC.

 

Jan-Pro of North Chicago, LLC ("JPNC"), is an affiliate that is a Regional Master Franchisee for Chicago, Illinois. JPNC is a Delaware limited liability Company, with principal offices located at 11605 Haynes Bridge Road, Suite 425, Alpharetta, Georgia 30004-8695. JPNC has never offered franchises for any other line of business. JPNC has never operated a business similar to the one franchisees will operate. As of September 30, 2007, it has sold 13 Jan-Pro franchises and has acquired 27 Jan-Pro franchises from its predecessor.

Jan-Pro of Phoenix, LLC (" JPP"), is a Delaware limited liability company organized on April 10, 2 0 07, and conducts business as Jan-Pro of Phoenix. Its principal business address is 11605 Haynes Bridge Road, Suite 425, Alpharetta, Georgia 30004-8695. It is the Jan-Pro regional master franchisee for Phoenix, Arizona, operating under a Regional Master Franchise Agreement entered with the Master Franchisor on May 1, 2007. It has never operated a business similar to the Franchised Business or sold franchises in any other line of business. As of September 30, 2007, it has sold 47 Jan-Pro franchises and has acquired 138 Jan-Pro franchises from its predecessor.

 

Jan-Pro Enterprises, LLC ("JPE"), is a Delaware limited liability company organized on February 15, 2005, and conducts business as Jan-Pro and Jan-Pro Cleaning Systems. Its principal business address is 116 05 Haynes Bridge Road, Suite 425, Alpharetta, Georgia 30004-8695. It has never operated a business similar to the Franchised Business or sold franchises in any other line of business. As of September 30, 2007, it has sold 2 International Country Master Jan-Pro franchises and no U.S. Jan-Pro franchises.

Jan-Pro of San Antonio, LLC {"JPSA"), is a Delaware limited liability company, organized on August 7, 2007, and conducts business as Jan-Pro Cleaning Systems of San Antonio. Its principal business address is 116 05 Haynes Bridge Road, Suite 425, Alpharetta, Georgia 30004-8695. It has never operated a business similar to the Franchised Business or sold franchises in any other line of business. As of September 30,� 2007,� it has not yet sold any Jan-Pro franchises.

 

Industry-Specific Regulations

 

As a Regional Master Franchisee, you should examine the federal and various states''■ laws for the sale of franchises. The Federal Trade Commission and various states regulate the sale of franchises and the relationship between franchisors� (or master

6012\FranDocs-CA\Agt-FDD-RegionalMaster-CA-TST.doc 1.29.2008� 14:00\1.11.2007 14.26 2 franchisees) and franchisees. You must comply with these regulations before and when you solicit Unit Franchisees. You are advised to examine these and other laws before purchasing a Regional Master Franchise.

 





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