About Sonitrol Franchise
Sonitrol is a commercial security franchise that has been part of the franchise landscape since 1965, making it one of the longest running security franchise brands in the United States.
The brand, owned by Stanley Black & Decker, Inc, specializes in verified audio and video intrusion detection systems for businesses.
The franchise fee is $0, with no upfront franchise fee required.
Sonitrol Franchise Cost & Fees
Minimum Investment
$50K
Average Investment
$137K
Maximum Investment
$223K
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $0 | One-time payment upon signing |
| Royalty Fee | Varies; determined for each Renewing Type A Franchisee by dividing: (i) the aggregate amount of royalty fees due under franchisee’s existing franchise agreement for the calendar year ending December 31, 2009, by (ii) franchisee’s aggregate Gross Revenues for the Applicable Calendar Year. Royalty rate will not increase more than 0.25% in any calendar year and will never exceed 4.0%. of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | None | National brand fund |
| Total Investment Range | $50,000 – $223,200 | Includes build-out, inventory, working capital |
The investment range of $50K–$223K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (Varies; determined for each Renewing Type A Franchisee by dividing: (i) the aggregate amount of royalty fees due under franchisee’s existing franchise agreement for the calendar year ending December 31, 2009, by (ii) franchisee’s aggregate Gross Revenues for the Applicable Calendar Year. Royalty rate will not increase more than 0.25% in any calendar year and will never exceed 4.0%.) and marketing fee (None) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Optional Central Monitoring Station Equipment | $0 | $120,000 |
| Professional Fees (e.g., attorneys’ fees and accountant’s fees) | $0 | $3,200 |
| Additional Funds: First 9 Months of Operation | $50,000 | $100,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $7,500 |
| Renewal Fee | $0 |
| Technology Fee | $200 setup fee for remote setup or $600/day plus travel for on-site setup; Monthly fee of $200 for subscriber facilities 1 – 500 and $40 for each additional 100 subscriber facilities, capped at $1,200 per month per franchisee control group of two or more legal entities owned by a franchisee or franchisee’s affiliate. Approximately $1,000 per month for software licensing and servicing fees associated with the SONIP™ Equipment. |
| Audit Fee | $4,000 to $8,000 |
| Service Charges on Late Royalty Fee Payments | 0.1% per day |
| Training Fees | Program fee (if any), costs of travel, living accommodations, and/or wages for personnel. |
| National Accounts Program | 13% of Total Contract Value for each National Account system installed. Under certain circumstances, this fee may be reduced to 6.5% or 0%. |
| Proprietary Product Purchases | Prices will not exceed on an annual basis the cost of the products, plus an aggregate gross margin of fifty-three percent (53%). |
| Controlled Products | Prices will not exceed, on an annual basis, the cost of the products, plus an aggregate gross margin of fifty-three percent (53%). |
| Subscriber Contracts | $0 to $32 per pack of Subscriber Contracts. |
| Shipping Costs | 0 to 4% of the total amount of the purchase price for product purchases. |
| Restocking Fee for Returned Products | 15% of purchase price if returned within the first 90 days after shipment and 25% if returned after 90 days. |
| Monitoring Fee | Average is approximately $15 to $20 per Subscriber Account, per month, for basic monitoring. |
| Central Monitoring Station Equipment Annual Software License and Service Fees | $9,500 to $13,000 per year, depending on the number of consoles. |
| Repair of Central Monitoring Station and Other Proprietary Products | Approximately $1,000 to $2,000 annually |
| Computer Software and Technical Support Fees | $600/day, plus travel. |
| Indemnification | Varies depending on the circumstances. |
| Attorneys’ fees, costs and expenses and damages | We may recover damages, costs and expenses and attorneys’ fees that we incur as a result of your default under the Franchise Agreement, or as a result of our enforcement of the provisions of the Franchise Agreement. |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | Initial Orientation Training: 24-40 hours; Initial Technical Training: 24-40 hours; Initial Sales Training: 24-40 hours; SONIP™ Training: 4 hours classroom, 45-55 hours on-the-job. Ongoing training varies. |
| Classroom Training | Initial Orientation Training: 24-40 hours; Initial Technical Training: 24-40 hours; Initial Sales Training: Not Applicable; SONIP™ Training: 4 hours. Ongoing Technical Training: Varies; Ongoing Sales Training: Varies; New Product Training: Varies; Ongoing Management Training: Varies; Financial and Accounting Assistance: Not Applicable; "Sonitrol U" Basic Sales Training: 40 hours (5 days); Supplemental Training: Not Applicable; Manufacturer Product Training: Varies; Technical Sales Training: Not Applicable. |
| On-the-Job Training | Initial Orientation Training: Not Applicable; Initial Technical Training: Not Applicable; Initial Sales Training: 24-40 hours; SONIP™ Training: 45-55 hours. Ongoing Technical Training: Not Applicable; Ongoing Sales Training: Not Applicable; New Product Training: Not Applicable; Ongoing Management Training: Not Applicable; Financial and Accounting Assistance: Not Applicable; "Sonitrol U" Basic Sales Training: Not Applicable; Supplemental Training: Not Applicable; Manufacturer Product Training: Not Applicable; Technical Sales Training: Varies, usually 2-3 days. |
| Training Location | Initial Orientation Training: Various field locations; Initial Technical Training: Various locations; Initial Sales Training: Your location; SONIP™ Training: Your location. Ongoing Technical Training: Various locations; Ongoing Sales Training: Various locations; New Product Training: Various locations; Ongoing Management Training: Dallas, Texas, Naperville, Illinois; Financial and Accounting Assistance: Your location or telephone; "Sonitrol U" Basic Sales Training: Dallas, Texas, Naperville, Illinois; Supplemental Training: Your location or remotely; Manufacturer Product Training: Various locations; Technical Sales Training: Your location. |
| Additional Training | Sonitrol provides continuing education seminars for personnel on Sonitrol Products, installation, servicing and monitoring (voluntary, $200-$300 fee per person, travel/living expenses extra, minimum every two years). Periodically offers sales and management seminars (optional, $1,000-$1,200 fee, travel/living expenses extra). Arranges regional seminars for new product introductions (voluntary, no fees, travel/living expenses extra). Maintains financial staff for consultation on accounting and financial subjects (no fee). |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Non-exclusive |
| Exclusive Territory | No |
| Territory Size | Specific geographic boundary defined by zip codes. |
| Description | You will be granted a territory defined by zip codes. You will not receive an exclusive territory and may face competition from other franchisees, company-owned outlets, or other distribution channels. The franchisor will not establish another franchise or company-owned outlet within your territory for Sonitrol Products and Services as long as you comply with the Franchise Agreement terms. The franchisor retains rights to sell non-Sonitrol Products and Services within your territory to any potential customer and may sell Sonitrol Products and Services to the U.S. Government and certain national chain account Subscribers within your territory. You must purchase at least $10,000 of Proprietary Products annually; failure to meet this for two consecutive years may result in the franchisor establishing company-owned locations or additional franchisees in your territory. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 15 years |
| Renewal Term | 15 years |
| Renewal Fee | $0 |
| Renewal Conditions | Franchisee must provide written notice of intent to renew 180-365 days prior to the end of the Initial Term, there must be no continuing or uncured Event of Default, and both parties must execute a mutual general release. Following the Renewal Term, the franchisee may be provided the right to continue under a new agreement with current terms and conditions offered to new franchisees, provided conditions are met and a new agreement is executed. |
| Transfer Fee | $7,500 |
| Transfer Conditions | Transferee must meet franchisor's standards for a new Sonitrol franchisee, no uncured Event of Default exists, all outstanding amounts due to franchisor are paid, franchisee executes a mutual general release, transferee accepts terms of agreements and manuals, and transferee pays a $7,500 transfer fee. |
| Termination for Cause | Franchisor can terminate for various defaults including failure to pay monies owed, criminal conviction of key personnel, material misrepresentation, failure to meet Minimum Performance Requirements (MPRs) for two consecutive years, or repeated failure to comply with agreement provisions. Cure periods apply for most defaults (e.g., 10 business days for payment, 30 days for other defaults), but some events allow immediate termination. |
| Non-Compete Period | 2 years |
| Non-Compete Details | During the term of the agreement, franchisee (including all entities owned by franchisee, parent corporations, immediate family members, and holders of 25% or more equity) cannot directly or indirectly own, manage, operate, join, control, or participate in any competitive business. After termination or expiration, for a period of two years, the franchisee cannot engage in a competitive business within the Exclusive Territory and any area within 100 miles of its outside boundaries, with exceptions for operating a non-competitive security-related business or monitoring accounts under certain conditions. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | No |
| Participation Details | We recommend personal participation, but it is not required. The Sonitrol Business must be supervised "on premises" by a general manager or principal operating person who is of good moral character and capable of performing all duties and obligations. This person must successfully complete initial sales and technical training. Owners of the franchise entity and/or certain employees may be required to enroll in training programs at their expense. |
| Required Suppliers | You must buy Proprietary Products from us or from suppliers designated by us. You must buy Controlled Products from us or from suppliers designated by us. You are required to use Subscriber Contracts in the forms we prescribe. The Subscriber Contracts must be purchased from us and no other source. |
| Supply Restrictions | You may not contract with alternative suppliers for Proprietary Products. If you would like to contract with alternative suppliers for Controlled Products, at your expense, you must submit a request to us, which must include sufficient specifications, photographs, or other information or samples for examination and testing, so that we may determine whether the proposed supplier and product meets our requirements. |
| Franchisor Revenue from Suppliers | We received $5,408,938 during 2021 for the sale or lease of equipment and inventory to Sonitrol franchisees which revenue is included on the financial statements of our indirect parent company Stanley Black & Decker, Inc. The percentage of our total revenues represented by required purchases by Sonitrol franchisees in fiscal year 2021 was 51%. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | Stanley Convergent and its affiliates do not offer direct or indirect financing to you. From time to time, we may provide you with the name of one or more third party lenders that may provide financing to qualified applicants seeking to purchase or lease equipment and other personal property and services (the “SONIP™ Equipment”) for the operation of the SONIP™ platform. |
Sonitrol Franchise Earnings — Item 19
Sonitrol does not make an Item 19 financial performance representation in their FDD. This means they do not disclose revenue, profit, or earnings data for franchised locations. Before investing, ask the franchisor directly for franchisee contact information so you can speak with existing owners about their actual financial performance.
Sonitrol does not include an Item 19 financial performance representation in their FDD. Contact information for current and former franchisees is listed in Item 20 of the FDD.
Sonitrol Litigation & Risk Flags
1 Pending Action ListedReview the full FDD for details on pending litigation.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Sonitrol System Growth
Total Units
133
Franchised
73
Company-Owned
60
Sonitrol currently operates 73 franchised locations and 60 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2019 | 3 | 3 | 133 |
| 2020 | 7 | 8 | 133 |
| 2021 | 1 | 3 | 133 |
Transfers: 0 | Closures: 14
State Registrations
Registered in 22 states: CA, CT, FL, HI, IL, IN, IA, KY, MD, MI, MN, NE, NY, ND, OR, RI, SD, TX, UT, VA, WA, WI
Franchisor Financials (Item 21)
Revenue
$10.5M
Net Income
$1600.3M
Total Assets
$28180.0M
Audited by Ernst & Young LLP for year ending January 1.
Sonitrol Franchise — FAQ
The total investment to open a Sonitrol franchise ranges from $50,000 to $223,200, per their Franchise Disclosure Document. This includes the initial franchise fee of $0. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Sonitrol charges a royalty fee of Varies; determined for each Renewing Type A Franchisee by dividing: (i) the aggregate amount of royalty fees due under franchisee’s existing franchise agreement for the calendar year ending December 31, 2009, by (ii) franchisee’s aggregate Gross Revenues for the Applicable Calendar Year. Royalty rate will not increase more than 0.25% in any calendar year and will never exceed 4.0%. of gross sales, plus a None contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Sonitrol Franchise Disclosure Document free on this page. The FDD is a public document filed with state franchise registries. Always also request the current FDD directly from Sonitrol to ensure you have the most up-to-date version.
Sonitrol does not provide an Item 19 financial performance representation in their FDD, which means they do not disclose franchisee revenue or earnings data. Prospective investors should contact existing franchisees directly (listed in Item 20 of the FDD) to gather real-world financial performance information.
Sonitrol has been franchising since 1965. The FDD shows an investment range of $50,000-$223,200, a Varies; determined for each Renewing Type A Franchisee by dividing: (i) the aggregate amount of royalty fees due under franchisee’s existing franchise agreement for the calendar year ending December 31, 2009, by (ii) franchisee’s aggregate Gross Revenues for the Applicable Calendar Year. Royalty rate will not increase more than 0.25% in any calendar year and will never exceed 4.0%. royalty, and no Item 19 earnings disclosure. There are 1 pending litigation action(s). Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $0 and the total investment ranges from $50,000 to $223,200 depending on location size and market. A minimum of $50,000 in liquid capital is required. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
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Data Source & Disclaimer: This website is for informational purposes only. It is not an offer to sell or buy a franchise. This profile is based on publicly available FDD data sourced from state franchise registry filings. All information is for research purposes only and does not constitute legal, financial, or investment advice. Data may be outdated or contain errors. Always obtain the current FDD directly from Sonitrol and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Sonitrol or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com