# Commercial cleaning franchise: how the master and unit model works, costs, and the account question

> A commercial cleaning franchise usually has three tiers: the franchisor sells a territory to a master franchisee, who sells unit franchises to the people who clean. The master signs and bills the accounts and hands them to unit owners for a fee plus royalties. Posted unit investments run from about $4,725 to $79,750 (Stratus); master territories cost far more (Anago posts $219K to $339K). Read the court cases over whether unit owners are employees before signing.

Published 2026-11-06 by Broombook · Start your cleaning business · 15 min read  
Canonical page: https://broombook.com/guides/commercial-cleaning-franchise

## Key takeaways

- Jan-Pro, Jani-King, Coverall, Anago, Stratus, Vanguard and Buildingstars all sell unit franchises through a master or regional office; Office Pride sells a conventional single-tier franchise instead.
- Posted unit investments (Entrepreneur Franchise 500, October 2026): Jan-Pro $4,830 to $58,070 with a 10% royalty and 1% ad fee; Coverall $17,986 to $64,280 with a 5% royalty; Anago $12,150 to $68,250; Stratus $4,725 to $79,750.
- In the account-selling model you pay for a volume of monthly billing that the master office signs and services; the master also handles collections, billing and invoices, so you depend on it for every dollar.
- Courts have let unit franchisees pursue claims that they were really employees: the Third Circuit upheld a class of Jani-King franchisees in 2016, and the California Supreme Court held in a Jan-Pro case (2021) that the state’s ABC test applies retroactively.
- In a 3-year example at $5,000 a month of accounts, the posted Jan-Pro royalty and ad fee alone come to $19,800, before the franchise fee and the fees listed only in the disclosure document.

## How does a commercial cleaning franchise work? The master and unit model

Most commercial cleaning franchises have three tiers. The franchisor sells a territory, often a metro area or a state, to a master franchisee (also called a regional or area franchisee). The master sells unit franchises to individuals in that territory, signs cleaning accounts with local businesses, and offers those accounts to unit franchisees, who do the cleaning. The master bills the client, collects the money, keeps its fees and pays the unit owner the rest.

The franchisors describe it in their own words:

- **Stratus Building Solutions.** Rob Lancit, its vice president of franchise development, told Entrepreneur: “We’re a three-tiered business model. So you’ve got us at the corporate level, and then we award a master franchise over a state or geographic territory, and then the master goes out and awards unit franchises,” and “the masters handle everything for the unit franchisees: collections, billing, invoices, getting contracts” ([Entrepreneur interview](https://www.entrepreneur.com/franchises/find-out-how-stratus-building-solutions-became-the/446795)). Stratus’s own site says each local business operates under an agreement with a “subfranchisor/master franchisee” and that neither the franchisor nor its regional masters provide cleaning services ([Stratus unit franchise page](https://stratusclean.com/franchising/unit-franchise/)).
- **Anago.** Master franchisees “purchase an exclusive territory, sell unit franchises to individuals looking to buy a commercial cleaning business, secure commercial cleaning contracts from local businesses,” with a posted master investment of $219K to $339K ([Anago franchise opportunities](https://anagocleaning.com/franchise-opportunities/)).
- **Vanguard.** An Area Franchise supports the janitorial franchises in its region “by managing a commercial cleaning account sales process, handling billing and collections on Vanguard accounts” ([Vanguard franchise opportunities](https://vanguardcleaning.com/franchise-opportunities/)).
- **Jani-King.** Regional offices have sales teams that sign new business for franchisees, and corporate signs national accounts; new accounts “are signed and offered to franchisees” ([Jani-King unit franchise page](https://www.janiking.com/franchising/unit-franchise/)).
- **Coverall.** “You get an initial base of customers when you buy a Coverall franchise,” and after training “you may have the opportunity to purchase customer accounts in your area” ([Coverall franchise opportunities](https://www.coverall.com/franchise-opportunities/)).
- **Buildingstars.** Regional teams “secure initial cleaning accounts for you,” and its Technician and On-Site Manager programs promise “a guaranteed volume of monthly contract revenue within your first 90 days” ([Buildingstars franchise page](https://buildingstars.com/franchise/)).

Not every brand works this way. Office Pride sells a conventional franchise with a $45,000 initial fee and a posted startup range of $71,000 to $139,500, where you build your own accounts under the brand ([Office Pride franchise site](https://officepride.com/franchise/)). That is closer to the residential maid franchises described in the general guide to a [cleaning business franchise](https://broombook.com/guides/cleaning-franchise), which covers disclosure documents, royalties and questions for franchisees in depth. This page stays on the commercial model.

## What does a unit franchisee get, and what does the master keep?

A unit franchisee gets a brand, training, a starter volume of accounts and an office that sells, bills and collects. The master keeps a royalty on every dollar, often a management or billing fee, sometimes insurance and supply charges, and the client relationship itself, because the contract is usually between the client and the master, not you.

| What you get | What it usually means in practice |
| --- | --- |
| Initial accounts | A stated monthly billing volume (for example “$2,000 a month in accounts”), supplied over a period after training. The bigger the plan you buy, the bigger the volume. |
| Sales | The master’s reps find and quote the buildings. You usually cannot set the price on an account they bring you. |
| Billing and collections | The master invoices the client and pays you, net of fees, on its schedule. If the client pays late, you wait. |
| Training and systems | Cleaning methods, inspections, sometimes software. Jan-Pro’s Entrepreneur listing shows a technology fee of up to $60 a month. |
| Brand | Useful with national and multi-site clients, who buy from the brand, not from you. |

What you give up:

- **A share of revenue for the life of the agreement.** Jan-Pro’s listing shows a 10% royalty plus 1% ad fee; Coverall’s shows 5% ([Jan-Pro](https://www.entrepreneur.com/franchises/directory/jan-pro-cleaning-disinfecting/282471), [Coverall](https://www.entrepreneur.com/franchises/directory/coverall/282253)). Management, billing, insurance and supply fees are in Item 6 of the disclosure document and are not posted on either page.
- **Control of the price and the client.** If an account is underpriced, your margin is the one that suffers. If a client leaves, the replacement terms in your agreement decide whether you get another.
- **Independence.** Non-compete and non-solicitation clauses commonly stop you from taking the accounts with you if you leave. Read yours.

## What does a commercial cleaning franchise cost?

Unit franchises are cheap to enter compared with residential maid franchises: posted initial investments run from a few thousand dollars to about $80,000, depending on the size of the account plan you buy. Master territories are a different business and cost six figures. Every figure below comes from the franchisor’s own page or its Entrepreneur Franchise 500 listing, read between October 28 and November 7, 2026; where a brand posts nothing, the row says so. On the 2025 Franchise 500, Stratus ranked 23rd, Anago 44th and Jan-Pro 77th ([Entrepreneur 2025 list](https://www.entrepreneur.com/franchises/these-are-the-top-10-cleaning-franchises-in-2025/493601)), a ranking of growth and system size, not owner earnings.

| Brand | Posted unit investment | Posted fees | Source |
| --- | --- | --- | --- |
| Jan-Pro Cleaning & Disinfecting | $4,830 to $58,070; initial franchise fee $2,520 to $44,000; 12,455 units | 10% royalty, 1% ad fee, technology fee up to $60/mo, 10-year term | [Entrepreneur Franchise 500](https://www.entrepreneur.com/franchises/directory/jan-pro-cleaning-disinfecting/282471) |
| Coverall | $17,986 to $64,280; initial franchise fee $15,570 to $40,320; 7,707 units; $4,000 cash requirement | 5% royalty, no ad or technology fee listed | [Entrepreneur Franchise 500](https://www.entrepreneur.com/franchises/directory/coverall/282253) |
| Anago Cleaning Systems | $12,150 to $68,250 (unit); 1,868 units; master territory $219K to $339K | 10% royalty, 2% ad fee | [Entrepreneur Franchise 500](https://www.entrepreneur.com/franchises/directory/anago-cleaning-systems/282095), [Anago](https://anagocleaning.com/franchise-opportunities/) |
| Stratus Building Solutions | $4,725 to $79,750; 5,176 units; its own form offers unit franchises at a $5K to $50K investment | 5% royalty, ad fee up to 1%, 12-year term | [Entrepreneur Franchise 500](https://www.entrepreneur.com/franchises/directory/stratus-building-solutions/329456), [Stratus](https://stratusclean.com/franchising/unit-franchise/) |
| Buildingstars | “Starting as low as $2,445” for the Technician program; Technician, On-Site Manager and Corporate programs | Not posted | [Buildingstars](https://buildingstars.com/franchise/) |
| Jani-King | Not posted; the page offers “a range of investment plans” | Not posted | [Jani-King](https://www.janiking.com/franchising/unit-franchise/) |
| Vanguard Cleaning Systems | Not posted; a reduced initial investment for veterans is mentioned | Not posted | [Vanguard](https://vanguardcleaning.com/franchise-opportunities/) |
| Office Pride (single-tier) | $71,000 to $139,500; initial franchise fee $45,000, $10,000 discount for qualifying military and first responders | Not posted | [Office Pride](https://officepride.com/franchise/) |

How to read the ranges:

- **The low end buys a small account plan.** A $5,000 unit franchise typically comes with a small monthly billing volume and the expectation that you clean it yourself in the evenings. The high end buys more accounts and assumes you hire.
- **Financing is often the franchisor’s.** Jan-Pro’s listing shows in-house financing; Coverall advertises “hassle-free financing.” A financed franchise fee is a loan you repay out of accounts the master controls.
- **The posted fee is not the total cost.** Royalties, management fees, insurance, supplies and equipment bought through the system are all in Items 6 and 7 of the FDD. For what an independent janitorial start-up spends on the same things, see [how to start a commercial cleaning business](https://broombook.com/guides/how-to-start-a-commercial-cleaning-business).

## How the account-selling model works, and where it goes wrong

In the account-selling model you pay for a promised volume of monthly billing, the master finds and prices the accounts, and you clean them for the net after fees. It works when the accounts are well priced, close to you and stable. It goes wrong when they are underpriced, far away, cancelled quickly or replaced with worse ones, and the fees stay the same either way.

### The questions the model raises

- **Who priced the account?** A master’s sales rep is paid to sign buildings. If a $900-a-month office takes 30 hours a month to clean, your hourly take after a 10% royalty and other fees may be below minimum wage. Price it yourself with the free [commercial cleaning calculator](https://broombook.com/tools/commercial-cleaning-calculator) before you accept it.
- **What happens when an account cancels?** Agreements differ on whether a cancelled account is replaced, within what period, and whether the client must have been lost through no fault of yours. Get the replacement clause explained in writing.
- **Can you decline an account?** Some systems count a declined offer toward the volume they promised you. Ask how many offers you may turn down.
- **Whose client is it?** If the contract is between the master and the building, you cannot take it when you leave, and a non-solicitation clause may bar you from cleaning it under your own name afterward.

### What the court record documents

The complaints that have reached courts mostly turn on one question: is a unit franchisee an independent business, or an employee of the franchisor in everything but name? Two decisions are worth reading in full:

- **Williams v. Jani-King of Philadelphia (Third Circuit, September 21, 2016).** Two Jani-King franchisees, on behalf of a class of franchisees in the Philadelphia area, claimed they were misclassified and sought unpaid wages under Pennsylvania’s Wage Payment and Collection Law. The district court certified the class, and the Third Circuit affirmed, holding that the question could be decided on common evidence, chiefly the franchise agreement and manuals ([opinion, No. 15-2049](https://www2.ca3.uscourts.gov/opinarch/152049p.pdf)). The appeal decided only that the case could proceed as a class; it did not decide whether the franchisees were employees.
- **Vazquez v. Jan-Pro Franchising International (California Supreme Court, January 14, 2021).** In a case over whether workers were employees or independent contractors under California wage orders, the Ninth Circuit asked the California Supreme Court whether its 2018 Dynamex decision, which adopted the ABC test, applied retroactively. The court held that it does ([opinion, S258191](https://www.courts.ca.gov/opinions/archive/S258191.PDF)). The court was careful to say it was not deciding how Dynamex applies to franchise arrangements in general, so the ruling settled the test, not the outcome.

Neither opinion is an accusation against the model, and franchisors have won and settled cases elsewhere. What the record shows is that the line between a unit franchisee and an employee is contested in court, state by state, and that the answer depends on how much control the master keeps over pricing, clients and the work. Your state’s test for employee status is covered, for your own cleaners, in [cleaning business W2 or 1099](https://broombook.com/guides/independent-contractor-vs-employee-cleaners); the same test is what these cases apply one level up.

## What the franchise disclosure document must tell you

Federal law requires the franchisor to give you a disclosure document at least 14 calendar days before you sign anything or pay anything, and the document must follow a fixed 23-item format. The rule is the FTC Franchise Rule, codified at [16 CFR Part 436](https://www.ecfr.gov/current/title-16/chapter-I/subchapter-D/part-436), and the same rule covers a $5,000 unit franchise and a $300,000 master territory.

The items that matter most for a commercial cleaning unit:

- **Item 6, other fees.** Royalty, management or administrative fees, billing fees, insurance, supplies, technology, transfer and renewal. This is where the real cost of the account model lives.
- **Item 7, estimated initial investment.** A table with a low-high range for each cost, which must include a category of additional funds for the initial period of operations and explain how the franchisor arrived at it.
- **Item 12, territory.** Whether you get any protected area, or whether the master can sell unit franchises next door to you without limit.
- **Item 19, financial performance representations.** If a rep tells you what franchisees earn, that claim must be in Item 19 or based on it. The rule allows information that differs from Item 19 only in narrow cases, such as the actual records of an existing outlet you are buying.
- **Item 20, outlets and franchisee information.** Tables of outlets opened, transferred, terminated and not renewed over three years, plus contact details for current and former franchisees. For a unit franchise, the turnover numbers here are the best single signal of how the accounts actually hold up.

Unit franchises are commonly sold by the master, under the franchisor’s FDD. Ask which entity you are contracting with, which entity owns the client contracts, and what happens to your accounts if the master itself is sold or terminated. The FTC’s website blocks automated reading, so this page cites the regulation text directly; the Commission’s consumer guide to buying a franchise is linked from the general [cleaning franchise guide](https://broombook.com/guides/cleaning-franchise).

## Questions to ask the master office and current unit owners

Ask the master office for numbers and ask unit owners for the story behind them. Item 20 gives you the names; call at least five current and three former franchisees before you sign.

### For the master office

1. What monthly billing volume comes with my plan, over what period, and what is the written remedy if it is late or short?
2. Every fee deducted from an account’s billing before I am paid: royalty, management, billing, insurance, supplies. Show me a real monthly statement.
3. What is the average account size and the average distance from my home for accounts offered in the last 12 months?
4. How many accounts offered last year were declined by franchisees, and does a decline count toward my volume?
5. What is the replacement policy when a client cancels, and how long did replacements take last year?
6. Who holds the contract with the client, and what can I take with me if I leave?
7. How many unit franchises did you sell in my area last year, and how many were terminated or transferred (compare with Item 20)?

### For current and former unit owners

1. How long after training did your first accounts arrive, and were they the size promised?
2. What do you clear per hour after fees on a typical account, and did anyone show you that math before you bought?
3. Have you lost accounts, and were they replaced?
4. Do you clean yourself, or employ a crew? If you employ, who handles payroll and workers’ compensation?
5. Would you buy again, and if not, what would you do instead?

Record the answers in writing. If a verbal promise about earnings or account volume is not in the FDD or your agreement, assume it is not a promise.

## Commercial cleaning franchise vs going independent: a 3-year example

Over three years at $5,000 a month of accounts, the posted Jan-Pro royalty and ad fee come to $19,800, plus a franchise fee of $2,520 to $44,000. An independent janitorial company with the same accounts pays none of that, and instead spends money and time on insurance, a bond, software and selling.

### The assumptions (hypothetical revenue, posted fees)

- Revenue: $5,000 a month of accounts for 3 years, $180,000 in total, on both paths. In reality the franchise path often starts faster because the master brings the first accounts; the independent path depends on your own selling.
- Franchise fees: Jan-Pro’s posted 10% royalty and 1% ad fee, and its posted franchise fee range. Management, billing, insurance and supply fees are not posted, so they are left out, which flatters the franchise column.
- Independent costs counted here: scheduling and billing software at $39/mo (Broombook Pro) for 3 years, $1,404. Insurance, a bond and your selling time are real costs on the independent path and are discussed below rather than guessed.

|  | Unit franchise (posted fees only) | Independent |
| --- | --- | --- |
| Revenue over 3 years | $180,000 | $180,000 |
| Franchise fee | $2,520 to $44,000 | $0 |
| Royalty (10%) and ad fee (1%) | $19,800 | $0 |
| Software | Technology fee up to $60/mo where charged | $1,404 |
| Posted fees paid to the system | $22,320 to $63,800 | $1,404 |

The gap is what the master’s selling, billing and brand have to be worth to you: between $20,916 and $62,396 over three years in this example, before the unposted fees. Put the independent path’s real costs against it honestly: general liability insurance and a [janitorial bond](https://broombook.com/guides/janitorial-bond) (a few hundred to a couple of thousand dollars a year for a small company, priced in those guides), and the evenings you will spend finding buildings. The guide to [commercial cleaning contracts](https://broombook.com/guides/commercial-cleaning-contracts) lays out where bids are posted and how long the first accounts take.

Software now replaces much of what a master office used to provide: recurring schedules per building, a crew app with checklists, photos and clock-in, invoicing or card-on-file billing, reminders and payroll exports. Broombook does that for residential and small recurring commercial accounts free to start, or a flat $39/mo on Pro (see [pricing](https://broombook.com/pricing)); janitorial-specific tools add inspections and bidding. What software does not replace is a sales team, which is the honest case for a franchise if you cannot or will not sell.

## Who is a commercial cleaning franchise a good fit for, and who should go independent?

A unit franchise fits someone who wants evening cleaning income without selling, accepts that the master sets the price and owns the client, and has read the Item 20 turnover tables and called former owners. Going independent fits anyone willing to find their own buildings, because the fee savings compound and the accounts are yours.

### A franchise may be right if

- You have never sold a commercial account and do not want to learn; the master’s sales team is the product you are buying.
- You want to start part time with one or two small accounts and keep a day job, which is how many unit franchises are sold.
- You will work national or multi-site accounts that buy from a brand, and your region has them.
- You have checked the per-hour take on real accounts offered in your area and it clears your minimum.

### Independent is usually better if

- You can sell, or can hire someone who can: a cold walk into 50 small offices a month is how independents win their first contracts.
- You plan to grow past yourself. Royalties on a $300,000 janitorial company are a full-time wage paid to someone else every year.
- You want to own the client contract, the pricing and the right to sell the business one day.
- You have, or will build, the systems a master office provides: pricing by the square foot, inspections, scheduling software and clean invoicing.

### A master franchise is a different decision

Buying a master territory (Anago posts $219K to $339K) means running a sales and billing office and selling unit franchises to others. Your income depends on selling units and accounts, and your legal exposure includes how those unit owners are classified, which is exactly what the cases above are about. It is a franchise sales business with cleaning attached, and it should be evaluated with a franchise attorney, not with this page. None of this is legal or financial advice; franchise law and employee-classification tests differ by state, so check yours.

## Frequently asked questions

### How does a commercial cleaning franchise work?

Most use a three-tier model. The franchisor sells a territory to a master (regional) franchisee, who sells unit franchises to individuals and signs cleaning accounts with local businesses. The master offers accounts to unit owners, bills the clients, collects the money and pays unit owners net of royalties and fees. Unit owners do the cleaning, usually in the evenings.

### How much does a janitorial franchise cost?

Posted unit investments on Entrepreneur’s Franchise 500 pages (October 2026) run from $4,830 to $58,070 for Jan-Pro, $17,986 to $64,280 for Coverall, $12,150 to $68,250 for Anago and $4,725 to $79,750 for Stratus; Buildingstars posts a low end of $2,445. Master territories cost far more: Anago posts $219K to $339K. Jani-King and Vanguard post no figures; ask for the FDD.

### What is the best commercial cleaning franchise?

There is no single answer, because the brand matters less than the master office in your region: its account pricing, replacement policy, fees and turnover. Compare Item 20 turnover and the fees in Item 6 across the FDDs you are offered, and call former unit owners in your own territory. Entrepreneur ranked Stratus 23rd, Anago 44th and Jan-Pro 77th on its 2025 Franchise 500, which measures growth and system size, not unit owner earnings.

### Do commercial cleaning franchises guarantee accounts?

Many sell a plan tied to a stated monthly billing volume, and some promise it within a period: Buildingstars says its Technician and On-Site Manager programs provide a guaranteed volume of monthly contract revenue within the first 90 days, and Coverall says you get an initial base of customers. The remedy if accounts are late, small or cancelled is in the agreement, so read that clause before relying on the word guarantee.

### Are janitorial franchise owners employees or independent contractors?

It has been litigated. The Third Circuit allowed a class of Jani-King franchisees in Philadelphia to pursue a misclassification claim in 2016, and the California Supreme Court held in Vazquez v. Jan-Pro (2021) that California’s ABC test applies retroactively, while saying it was not deciding how the test applies to franchise arrangements generally. The answer depends on the state and on how much control the master keeps.

### Can I buy a janitorial franchise for sale from another owner?

Yes, unit franchises are transferred, usually with the master’s approval and a transfer fee listed in Item 6 of the FDD. Before buying a resale, ask for the actual billing statements of the accounts being transferred, which the FTC rule allows a franchisor to provide for an existing outlet you are considering, and confirm the accounts move with the franchise.

### Is it better to start a commercial cleaning business independently?

If you can sell, usually yes: you keep the royalty (10% plus 1% at Jan-Pro, 5% at Coverall, per their Entrepreneur listings), own the client contracts and set your own prices, and software now covers scheduling, crew checklists, billing and payroll for a flat monthly fee. A franchise makes sense when you want accounts found and billed for you and accept paying a share of revenue for that.

## Sources

- [Entrepreneur Franchise 500: Jan-Pro Cleaning & Disinfecting (checked October 28, 2026)](https://www.entrepreneur.com/franchises/directory/jan-pro-cleaning-disinfecting/282471)
- [Entrepreneur Franchise 500: Coverall (checked October 28, 2026)](https://www.entrepreneur.com/franchises/directory/coverall/282253)
- [Entrepreneur Franchise 500: Anago Cleaning Systems (checked November 7, 2026)](https://www.entrepreneur.com/franchises/directory/anago-cleaning-systems/282095)
- [Entrepreneur Franchise 500: Stratus Building Solutions (checked November 7, 2026)](https://www.entrepreneur.com/franchises/directory/stratus-building-solutions/329456)
- [Entrepreneur: the top cleaning franchises in 2025, with Franchise 500 rankings](https://www.entrepreneur.com/franchises/these-are-the-top-10-cleaning-franchises-in-2025/493601)
- [eCFR: 16 CFR Part 436, the FTC Franchise Rule](https://www.ecfr.gov/current/title-16/chapter-I/subchapter-D/part-436)
- [Williams v. Jani-King of Philadelphia, No. 15-2049 (3d Cir. Sept. 21, 2016)](https://www2.ca3.uscourts.gov/opinarch/152049p.pdf)
- [Vazquez v. Jan-Pro Franchising International, S258191 (Cal. Jan. 14, 2021)](https://www.courts.ca.gov/opinions/archive/S258191.PDF)

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Broombook is scheduling, online booking and crew software for residential cleaning businesses. More guides for cleaning business owners: https://broombook.com/guides