Stratus Building Solutions Franchise in 2024: Costs, Fee & FDD

Stratus Building Solutions is a leading commercial cleaning franchise, recognized for its innovative approach to green cleaning and comprehensive range of janitorial services. Founded in 2004 by Dennis Jarrett and Pete Frese, the company quickly gained prominence for its commitment to environmentally responsible cleaning solutions and exceptional customer service. The franchise offers services to a wide array of businesses, including office buildings, medical facilities, schools, and retail spaces, catering to a growing market that values cleanliness and sustainability.

Stratus Building Solutions primarily offers commercial cleaning services, but they also provide additional services such as hard floor care, carpet cleaning, and post-construction cleanup. These services are delivered by highly trained franchisees who use eco-friendly products and state-of-the-art equipment. The franchise’s core customer base includes small to medium-sized businesses, educational institutions, and healthcare facilities, where maintaining a clean and healthy environment is paramount.

As of today, Stratus Building Solutions has expanded significantly, with over 3,000 franchise units across the United States and Canada. The company’s growth is fueled by the increasing demand for green cleaning services and its reputation for high-quality service. Stratus continues to expand its presence by attracting franchisees who are passionate about sustainable business practices and providing outstanding customer service.

Stratus Building Solutions offers robust support for its franchisees, including comprehensive training programs that cover all aspects of running the business, from operational procedures to marketing strategies. The franchise provides ongoing support, including a proprietary software system for managing daily operations, continuous training opportunities, and marketing support. Franchisees also benefit from the company’s strong brand reputation and extensive network of industry contacts, making it a compelling opportunity for those looking to invest in a growing industry.

Stratus Building Solutions Franchise Insights

1. Stratus Building Solutions has consistently ranked among the top commercial cleaning franchises, thanks to its commitment to green cleaning and sustainability, which appeals to environmentally conscious clients.
2. The franchise has seen rapid growth, with over 3,000 units currently in operation, highlighting its strong market presence and the increasing demand for commercial cleaning services.
3. Stratus franchisees benefit from a lower startup cost compared to many other service franchises, making it an accessible option for entrepreneurs looking to enter the commercial cleaning industry.
4. The franchise offers a recurring revenue model, which is attractive to potential investors due to the steady demand for cleaning services, especially in sectors like healthcare and education.

Stratus Building Solutions Franchise Key indicators

How much does it cost to open a Stratus Building Solutions franchise?

Understanding the potential investment size and capital requirements is crucial when considering opening a Stratus Building Solutions franchise. These financial commitments, including initial franchise fees, equipment costs, and ongoing operational expenses, impact the feasibility and profitability of the venture. Thoroughly evaluating these factors ensures that potential franchisees are prepared for the financial responsibilities and can make informed decisions about their ability to sustain and grow the business, ultimately contributing to long-term success.

Min & Max Investment

Opening a Stratus Building Solutions franchise involves several key costs, which are outlined in Item 7 of the Franchise Disclosure Document (FDD). You can see a breakdown of the costs to open a Stratus Building Solutions below from the most recent Item 7 below:

Item 7 in the Franchise Disclosure Document (FDD) is the “Estimated Initial Investment” section. It outlines the total costs a franchisee can expect to incur when starting a franchise, including the initial franchise fee, equipment, inventory, real estate, and other startup expenses. This section is crucial because it provides potential franchisees with a detailed understanding of the financial commitment required, helping them assess affordability and plan their investment strategy effectively.

Required Capital

To open a Stratus Building Solutions franchise, potential franchisees need to be prepared for both initial and ongoing financial commitments. Here’s what you need to know:

• Initial Investment The initial investment required to start a Stratus franchise ranges from $4,000 to $80,000, depending on the size and location of the franchise. This investment covers the franchise fee, equipment, training, and initial marketing costs. Assuming that you will finance your franchise investment, you should plan to have 20% of the total investment amount in the form of equity (cash) for the investment.
• Liquid Assets Requirement Stratus requires potential franchisees to have a minimum of $4,000 in liquid assets. This ensures that the franchisee has enough cash on hand to cover unexpected expenses and maintain the business during the startup phase.
• Net Worth Requirement While Stratus does not specify a strict net worth requirement, having a higher net worth will make it easier to secure financing and ensure long-term financial stability.

How much does a Stratus Building Solutions franchise owner make?

Calculating the salary of a Stratus Building Solutions franchise owner involves analyzing gross sales to determine total revenue, assessing operational efficiency to understand profit margins, and accounting for franchisor fees and additional expenses such as rent, utilities, and payroll. Effective management of these factors can significantly impact the profitability and financial success of a Stratus Building Solutions franchise owner. This comprehensive financial analysis helps estimate net profits, from which the owner’s salary can be derived. A clear understanding of these factors ensures accurate salary projections and financial planning for sustainable business operations.

Stratus Building Solutions Revenue & Gross Sales

Based on the most recent data, Stratus Building Solutions franchises have shown significant financial performance in recent years. The franchise has reported gross sales of $2,320,216. This growth reflects the strong demand for commercial cleaning services and the franchise’s ability to attract and retain clients.

Which key factors impact the average revenue performance of Stratus Building Solutions franchisees?

Several factors contributed to the improvement in Stratus Building Solutions’ franchisee gross sales. The increasing awareness and demand for eco-friendly cleaning services have positioned Stratus as a preferred provider for businesses seeking sustainable solutions. Additionally, the franchise’s diversified service offerings, such as disinfection and specialized cleaning, have become increasingly important in the post-pandemic world, driving higher client acquisition and retention rates. The franchise’s commitment to continuous support and training for its franchisees has also played a crucial role in enhancing operational efficiency and service quality, ultimately leading to higher sales and profitability.

Stratus Building Solutions Franchise Operational Costs

For a Stratus Building Solutions franchise, ongoing operational costs are crucial to maintaining smooth operations and ensuring profitability. Key primary operational costs include:

• Labor Costs Wages and benefits for cleaning staff, including costs for hiring, training, and managing employees.
• Supplies and Inventory The cost of purchasing cleaning supplies, equipment, and eco-friendly products used in daily operations.
• Transportation Costs Expenses related to the transportation of cleaning staff and equipment to various client locations.
• Insurance Costs for liability insurance, worker’s compensation, and other necessary coverage to protect the business and its employees.
• Technology and Software Expenses for maintaining and upgrading scheduling, billing, and customer relationship management (CRM) systems that streamline operations.
• Maintenance and Repairs Regular maintenance and unexpected repairs of equipment, vehicles, and office facilities.
• Licensing and Permits Costs for obtaining and renewing necessary business licenses and permits to operate legally in your area.
• Utilities Monthly expenses for electricity, water, internet, and other essential utilities to keep your business running smoothly.

Effective management of these operational costs is essential for the long-term success of your Stratus Building Solutions franchise. By carefully planning and budgeting for these expenses, you can ensure your franchise remains financially healthy and capable of delivering high-quality services to your clients. Balancing cost efficiency with exceptional service delivery will help you maximize profitability while maintaining a strong reputation in the competitive commercial cleaning industry.

Stratus Building Solutions Franchise Fees

Owning a Stratus Building Solutions franchise requires paying ongoing fees, which contribute to the franchise system’s overall support and brand development. The fees include:

• Royalty Fee 5% of Gross Billings, due on the last workday of the following month. This fee helps cover the support and resources provided by the franchisor.
• Administration Fee 10% of Gross Billings, also deducted on the last workday of the following month. This fee covers administrative support and operational assistance.
• Advertising Fee Although currently not being collected, there is an advertising fee of 1% of Gross Billings, intended for future marketing initiatives.
• Additional Fees Franchisees may also be responsible for other fees such as technology support fees, training fees for new services or programs, and fees for optional services like call center support or customer lead generation.

These fees are critical to maintaining the franchise’s brand visibility and operational consistency across all locations. By adhering to these financial obligations, franchisees can leverage the comprehensive support and resources provided by Stratus Building Solutions, helping to ensure the success and growth of their business.

Stratus Building Solutions Franchise Earnings

The median gross sales for Stratus Building Solutions franchises have shown consistent growth, reflecting the strong demand for commercial cleaning services and the effectiveness of the franchise model. Recent data indicates that the median gross sales across franchise locations have grown in recent years, reaching $2,320,216. This upward trend in gross sales not only highlights the potential for profitability but also underscores the stability and resilience of the Stratus brand in a competitive industry. For potential franchisees, these figures suggest a solid opportunity for financial success and long-term growth.

The earnings potential for Stratus Building Solutions franchisees is closely tied to their level of involvement and the performance of their operations. According to the most recent data, owner-operator franchisees have estimated median earnings of $348,032, demonstrating significant opportunity for would-be franchisees.

How to Open a Stratus Building Solutions Franchise

Becoming a franchisee with Stratus Building Solutions involves a structured process designed to ensure that franchisees are well-prepared and positioned for success. Here are the steps involved:

1. Initial Inquiry You or your franchise specialist submits an initial inquiry basic information about your interest and background. You should also conduct thorough research on the franchise, including seeing all of the information available on the Vetted Biz franchise intelligence platform, including access to the most recent Franchise Disclosure Document (FDD).
2. Application Once your initial inquiry is reviewed, you’ll be invited to complete a detailed franchise application. This application will ask for comprehensive information about your personal and professional background, financial status, and reasons for wanting to join the Stratus franchise network.
3. Initial Interview After your application is reviewed, you will participate in an initial interview with a Stratus Building Solutions representative. This interview aims to assess your compatibility with the franchise’s values, your business acumen, and your motivation for pursuing a franchise.
4. Discovery Day If you advance through the initial stages, you’ll be invited to a Discovery Day. This is an opportunity to visit the Stratus Building Solutions headquarters, meet with key members of the franchise team, and gain a deeper understanding of the business model, support system, and what it takes to succeed as a franchisee.
5. Background and Financial Check Following Discovery Day, Stratus will conduct thorough background and financial checks to ensure you meet the franchise’s standards. This includes reviewing your credit history, verifying financial information, and confirming that you have the necessary capital to invest in the franchise.
6. Franchise Agreement If you pass the background and financial checks, you’ll be offered a Franchise Disclosure Document (FDD) and a franchise agreement. The FDD provides detailed information about the franchise, including fees, obligations, and expectations. You’ll review this document carefully and, if satisfied, sign the franchise agreement.
7. Training Program Before you begin operations, you will undergo comprehensive training provided by Stratus Building Solutions. This training covers everything from service delivery and customer management to business operations and marketing strategies. The goal is to equip you with the knowledge and skills necessary to successfully run your franchise.
8. Site Selection and Setup Stratus will assist you in selecting the appropriate territory or location for your franchise. Once the location is determined, you’ll work on setting up your operations, which includes acquiring necessary equipment, setting up an office, and preparing for business launch.
9. Pre-Opening Preparation In the lead-up to your grand opening, you’ll continue final preparations, such as hiring and training staff, finalizing marketing plans, and setting up your service schedule. Stratus provides ongoing support during this phase to ensure everything is in place for a smooth launch.
10. Grand Opening Once all preparations are complete, you’ll have your grand opening, officially starting operations as a Stratus Building Solutions franchisee. During this time, Stratus will provide additional support to help you attract initial clients and establish a strong market presence.
11. Ongoing Support After opening, you’ll receive ongoing support from Stratus Building Solutions, including operational guidance, marketing assistance, and regular evaluations to help you grow and maintain your business. This support is crucial in helping you navigate the challenges of running a successful franchise.

Pros & Cons

Pros

Eco-Friendly Focus: Stratus Building Solutions emphasizes green cleaning solutions, which appeal to environmentally conscious clients and set the franchise apart in the commercial cleaning industry.

Diverse Service Offerings: With a wide range of services, including general janitorial work, carpet cleaning, and disinfection, franchisees can tap into multiple revenue streams, increasing profitability.

Scalability: Stratus Building Solutions provides opportunities for franchisees to expand their business by adding more units or offering additional services, making it a scalable investment.

Cons

Competitive Industry: The commercial cleaning market is highly competitive, with many established players. New franchisees may face challenges in securing market share and building a client base.

Operational Demands: Running a cleaning services franchise requires hands-on involvement, attention to detail, and effective management of staff, which can be demanding for franchise owners.

Variable Revenue: Earnings can be variable and are influenced by factors such as location, competition, and the ability to attract and retain clients, which can affect the financial stability of the franchise.