Stratus Building Solutions
Date Incorporation: 2004
Franchising Since: 2005
Headquarters: Missouri
Description: Stratus Building Solutions provides cleaning and maintenance related services, including, but not limited to, commercial, industrial, institutional and residential cleaning services on a daily, weekly, or monthly basis. They also provide specialty services as carpet care, floor care, window washing, wall cleaning, or programs of cleaning, sanitizing, deodorizing, and other related cleaning and/or maintenance services.
Franchise Offer: The franchise offer is the right to operate a Stratus master franchise. The franchisee will be granted the license to, license independent unit franchisees to use the Stratus trademarks, trade names, service marks, programs, materials, and procedures.
Financial Assistance: The franchisor may finance a portion (up to $50,000) of the initial franchise fee. If Stratus elects this option, the franchisee will be required to sign a promissory note. The promissory note will obligate the franchisee to pay the unpaid principal balance in monthly installments over a three-year period at an interest rate of 12% per annum.
Training and Assistance: The franchisee is required to attend the initial training program, consisting of two phases: Phase I and Phase II. Phase I consists of two consecutive weeks of training at the headquarters located in St. Louis, Missouri. Phase II is one week of training and takes place at the franchisee’s office in their territory.
Territory: The franchisee will be granted an exclusive territory.
Term of Agreement and Renewal: The length of the franchise term is 15 years, with an option to renew.
Obligations and Restrictions: The franchisee is required to participate in the direct operation of the business. The franchisee must be involved in the day to day operations of the business either through full time participation or by the management of a full time Regional Director who has completed the training program.
Total Number of franchises Units: 3,520 units
Investment Tables - (For a Master Franchise):
Initial Investment:
| Expenditures | Low | High |
|---|---|---|
| Initial Franchisee | $100,000 | $1,000,000 |
| Real Estate | $1,500 (varies depending on the market) | $15,000 |
| Initial Supplies | $500 | $1,000 |
| Equipment | $1,000 | $2,500 |
| Licenses, Permits, Security deposits etc. | $750 | $5,000 |
| Insurance | $1,000 | $3,500 |
| Training | $500 | $2,000 |
| Additional Funds (3 - 6 months) | $25,000 | $50,000 |
| Totals | $130,250 | $1,790,000 |
Ongoing fees:
| Name of Fee | Amount |
|---|---|
| Royalty | 4% of gross monthly revenues |
| Marketing/Advertising and Public Relations Fund | $150 or 1% per month of gross billing, whichever is greater |
| Franchise Sales | 10% of total down payment of the sale of each unit franchise, including deferred down payments (financing) and upgrades on unit franchisees |
| Transfer | 10% of all proceeds given as consideration for the sale, transfer or assignment with a minimum of $25,000 |
| Web Hosting Fee | Approximately $30 per month |
| Annual Conference | The conference is free. However, Master franchisees must pay for their own travel and lodging. |
| Lead Sources | Approximately $100 per month |
Date of FDD: 2009
The above information has been taken from the UFOC/FDD and online sources of Stratus Building Solutions
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