He Took a Second Mortgage and Built a $1M Cleaning Empire. Here’s the Model with Tom Richter
On this episode of The Ty Brady Way, Ty sits down with Tom Richter, regional developer for Jan Pro of Utah, a commercial cleaning franchise that has grown under his leadership from a second mortgage and a two-person operation into a 125-franchisee network with a multi-million dollar economic footprint across the state. Tom’s story is one that will resonate with anyone who has ever looked at a corporate career and wondered if there was something more, and then actually did something about it.
Tom grew up in Nebraska as a farmer, which he describes as the original entrepreneurial proving ground. Risk, reward, and no guaranteed outcome were baked into his upbringing. He carried that mindset into a 21-year corporate career, but after surviving three mergers, acquisitions, and hostile takeovers, the writing was on the wall. Rather than find another company to work for, Tom started looking at what it would mean to finally bet on himself. A former boss had bought into Jan Pro down in Tampa, Tom flew out to meet the founders, and something clicked. Their core values lined up. By the time the flight home landed, his mind was made up. Seven of his eight siblings were entrepreneurs, and he realized he was not supposed to be working for anyone else either.
Tom and his wife Carol took a second mortgage out on their home and purchased the rights to develop Jan Pro across the state of Utah, becoming only the 12th city to come on board with the brand and one of the first two locations in the entire Western United States. The first three to five years were exactly what you would expect from any startup. Tom was making sales calls, training new franchise owners, handling operations, and doing whatever needed doing while Carol managed the office while still working remotely for Intermountain Healthcare. Just the two of them for the first six months before bringing on their first hire. Today that team has grown to 12 support staff serving 125 franchise owners across Utah.
The Jan Pro model is something Tom explains with a lot of clarity and obvious pride. Rather than sending franchise owners out to fend for themselves, Jan Pro handles the sales, the client contracts, the audits and inspections, the invoicing, and the collections. Franchise owners come to Tom knowing how much business they want to build, they get trained, and then the regional development team goes out and gets their clients for them. Tom compares it to being the general contractor while the franchise owner supplies the labor. It removes most of the barriers that cause small cleaning operations to fail, and it is why the people who follow the model consistently succeed.
The success stories are hard to ignore. One franchise owner came in from Logan with just $950, the entry level at the time, starting with $500 a month in cleaning revenue. Twenty years later he is generating $40,000 a month and employs around 20 people, all while keeping his full-time job. Another owner arrived from Venezuela on refugee asylum status after losing three auto mechanic shops in Caracas to the political environment there. He is now Jan Pro Utah’s largest franchise owner, on track to hit a million dollars in revenue in just his fifth year with around 35 employees. These are not outliers. They are what the model produces when people commit to it.
Tom is candid about what gets people into trouble. The biggest issue is not the cleaning itself, it is management. A husband and wife team or a two-person operation can generally get to $75,000 or $100,000 in revenue on their own, but something shifts when they bring on employees. The expectation that an employee will care about the work the same way they do is where things start to fall apart. Without proper training, supervision, and ongoing engagement, it can unravel fast. His advice is direct: if you do not have strong business acumen, go get it before you need it, whether through SCORE or another resource that can fill in the gaps.
Tom also touches on what it takes mentally to make the leap into franchising or any kind of business ownership. He believes roughly 90% of people want to start something of their own, but half of them talk themselves out of it when they honestly assess their risk tolerance and their ability to push through the hard early years. That self-awareness is not weakness, it is honesty, and Tom respects it. But for those who do have that fortitude, the Jan Pro model is structured to give them as much runway as possible to succeed.
Looking ahead, Tom expects 20 to 30 percent year-over-year growth for the next five or more years and is on track to earn Gold Circle recognition among Jan Pro’s top 20 offices worldwide. His son has been part of the business for 12 years and is moving into ownership, setting up a transition that will carry the business well beyond Tom and Carol’s chapter. After 27 years of building, refining, and proving the model, the legacy looks like it is in good hands.
Connect with Tom Richter:
* Website: janpro.com/utah
* LinkedIn: linkedin.com/in/tomrichterutah
Connect with The Ty Brady Way:
* Email: thetybradyway@gmail.com
* Instagram: @thetybradyway
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