According to the Federal Trade Commission (FTC), buyers seeking a good investment should seriously consider janitorial service franchises. The suggestion has a lot to do with the fact that franchises provide owners with customers, marketing, billing and collection services, right off the bat and for a minimal fee.

The FTC continues to explain how janitorial services franchises work and emphasize that although there are many success stories, franchises carry no guarantee. Problems that investors may face include:

  • Accounts offered versus accounts received
  • Rejected accounts
  • Franchisor-selected accounts
  • Lost accounts
  • Integration clauses
  • First year time lag for receiving accounts
  • Ongoing fees
  • Franchisor-owned accounts
  • Training
  • Contract bidding procedures
  • Short-term accounts
  • Performance obligations
  • Payment for services
  • Personal guarantees
  • Anti-competition rules
The FTC Web site also lists franchise rules that buyers should be aware of, as well as procedures investors can take to protect themselves.