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Security 101 Franchise Costs & Fees

Date of Incorporation: 2003
Franchising Since: 2007
Headquarters: West Palm Beach, Florida

Business Description: Security Franchisors, LLC is the franchisor. The franchise offered is for the operation of a commercial security business that will provide sales, engineering, installation and monitoring of electronic access control; closed circuit television; and intrusion detection systems for commercial enterprises under the name “Security 101.”

Franchise Offer: The franchisor grants franchises to qualified persons for the right to operate a Security 101 commercial security business, within a protected territory and under the terms of its standard Franchise Agreement.

Financial Assistance: Neither the franchisor nor its affiliates offer, either directly or indirectly, any financing to franchisees. The franchisor is unable to estimate whether franchisees will be able to obtain financing for any or all of their investment and, if so, the terms of such financing. The franchisor does not guarantee franchisees’ notes.

Training and Assistance: Franchisees may not open their Commercial Security Business until they or their general manager completes the initial training program to the franchisor’s satisfaction. There is no charge for up to two people to attend this training. No additional training programs or refresher courses are currently required, but the franchisor reserves the right to require franchisees to attend additional training programs or refresher courses in the future.

Territory: Franchisees will be granted the right to operate their Commercial Security Business in an exclusive Protected Territory. The Protected Territory will be defined by Metropolitan Statistical Areas, zip codes, county or municipal boundaries, or geographic or highway boundaries. Each franchisee’s protected territory will be designated as an “A”, “B”, or “C” market based on the population of the Protected Territory on the date the Franchise Agreement is signed. “A” markets will contain a population in excess of 1,500,000 residents. “B” markets will contain a population between 500,000 and 1,500,000 residents. “C” markets will contain less than 500,000 residents. Franchisees will operate their Commercial Security Business from a specific location that the franchisor approves inside the Protected Territory. During the term of the Franchise Agreement, the franchisor will not establish either a company-owned Security 101 business or another franchised Security 101 business inside a franchisee’s Protected Territory or modify the Protected Territory without the franchisee’s written permission, provided that the franchisee is in compliance with the terms and conditions of the Franchise Agreement.

Term of Agreement and Renewal: The length of the initial franchise term is 10 years. If franchisees are in good standing and satisfy the renewal requirements, they can renew for additional 10 year terms.

Obligations and Restrictions: While we do not require that franchisees personally supervise their Commercial Security Business, the franchise must be directly supervised, on a daily basis, by a manager who has successfully completed the training program. The manager may not have an interest or business relationship with any of the franchisor’s business competitors. The manager need not have an ownership interest in the franchisee, but he or she must sign a written agreement to maintain the confidentiality of the franchisor’s trade secrets. The franchisor requires franchisees to offer and sell only those services that it has approved and that they only utilize products approved by the franchisor. Franchisees are required to offer all the products and services as defined in the Operations Manuals. Franchisees are not permitted to install security systems in the residential market unless it is an accommodation for a referral source or a family member of a commercial customer.

Estimated Number of Units: 35

Investment Tables:
Initial Investment
Name of Fee Low High
Initial Franchise Fee $35,000 $35,000
Travel & Living Expenses While Training $2,000 $3,500
Rent $2,250 $4,500
Leasehold Improvements $500 $2,500
Furniture, Equipment & Signage $4,900 $7,500
Computer System $1,150 $3,000
Software Fee $1,500 $1,500
Initial Inventory $2,000 $3,000
Miscellaneous Opening Costs $1,500 $2,500
Security and Lease Deposits $1,500 $3,000
Additional Funds - 6 months $50,950 $140,000
ESTIMATED TOTAL $103,250 $206,000
Other Fees
Type of Fee Amount
Royalty Fee Ranges from 4% to 6%. Monthly Minimum Payment requirement ranging from $2,000 to $8,000 begins on the 13th month following the opening date of the Commercial Security Business.
Marketing and Advertising Fees 0.5% of your monthly Gross Billings.
101 Ware Software Fee $500 per month.
Cross Sales Fee 60% of Gross Billing for Cross Sale.
Late Fee $50
Interest The lesser of 18% per annum or the maximum legal rate allowed by applicable law.
Local Advertising In addition to the Marketing and Advertising Fee franchisees must spend at least 2% of your monthly Gross Billings on local advertising and marketing.
Additional Franchise Management Training Currently $750 per person.
Transfer Fee 25% of our then-current Initial Franchise Fee.
Renewal Fee 10% of our then-current Initial Franchise Fee.
Audit The expenses the franchisor incurs to audit the franchisee’s records, ranging between $750 to $3,000
Insurance $1,000 to $3,000

The above information has been taken from the FDD of Security 101. Year of FDD: 2016

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