About Stratus Building Solutions of Long Island Franchise
Stratus Building Solutions of Long Island is a regional commercial cleaning franchise serving the Long Island, New York market.
Operating under the SBS Franchising, LLC umbrella, the brand provides janitorial and building maintenance services to commercial clients including offices, retail spaces, medical facilities, and educational institutions.
The company has been franchising since 2019.
Stratus Building Solutions of Long Island Franchise Cost & Fees
Minimum Investment
$4K
Average Investment
$19K
Maximum Investment
$34K
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $2,700 | One-time payment upon signing |
| Royalty Fee | 5% of Gross Revenues of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 1% of Gross Revenues for the preceding calendar month (currently not imposed) | National brand fund |
| Total Investment Range | $3,550 – $34,450 | Includes build-out, inventory, working capital |
The investment range of $4K–$34K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (5% of Gross Revenues) and marketing fee (1% of Gross Revenues for the preceding calendar month (currently not imposed)) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee (1) | $2,700 | $23,700 |
| Brand Certification Program Expenses (2) | $0 | $500 |
| Professional Costs (3) | $0 | $2,000 |
| Real Estate (4) | $0 | $750 |
| Vehicle (5) | $0 | $500 |
| Insurance (6) | $100 | $2,500 |
| Equipment & Supply Starter Package (7) | $650 | $2,000 |
| Business Licenses (8) | $75 | $500 |
| Additional Funds (4 months) (9) | $25 | $2,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | 5% of yearly Gross Revenues of Customer Accounts being sold/transferred (minimum $750) or 10% of sales price if transfer 10% or more of ownership in Franchisee. |
| Renewal Fee | $0 |
| Administration Fee | 10% of Gross Revenues for the preceding calendar month |
| Business Insurance Fee (Optional) | 2% of Gross Revenues for the preceding calendar month |
| Additional Customer Accounts - Account Acquisition | $ (additional billing provided by the new account) - $ (Business owed by you to Stratus) x (3 or 4 or 5) = Account Acquisition fee |
| Name Changes - Additions/Deletions | Flat fee of $250 |
| Franchise Requested Account Transfer Fee | $50 administration fee, plus the greater of $100 or 10% of monthly revenue |
| Customer Requested Trouble Transfer Fee | $50 administration and $75 complaint fee, plus the greater of $100 or 10% of monthly revenue |
| Account Abandonment Fee | Loss of all revenue owed, plus Customer Requested Trouble Transfer fee |
| Complaint Fees | $75 for the second or more complaints to us within 120 calendar days |
| Failure to Service Fee | Greater of $75 or 10% of monthly billing |
| Service Fee | $50 per hour for every hour we spend fixing issues at the Franchisee’s customer site; $50 fee for not turning in monthly statement by the 10th of the following month |
| Account Cancellation for Cause Fee | $75 complaint fee, plus 50% of one month’s gross billing on the first account lost; 75% of one month’s gross billing for the second account lost; and one full month’s gross billing for every account lost thereafter in a 12-month period of time |
| Isolated (Special) Services Fee | 10% of the price for the services stated in the contract |
| Re-Certification Fee | $75 per class |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 14.5 hours |
| Classroom Training | 8 |
| On-the-Job Training | 6.5 |
| Training Location | Stratus Long Island’s office or at one of its existing customer's buildings within commuting distance of your residence. |
| Additional Training | Group seminars are available from time-to-time and may be mandatory, with no cost to franchisees. Re-certification training may be requested for specific areas or in general, or may be mandatory if there are multiple customer complaints, lost accounts, or performance issues. The re-certification fee is $75 per class. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Non-exclusive |
| Exclusive Territory | No |
| Territory Size | Long Island, New York (Nassau, Suffolk, Queens and Kings Counties) |
| Description | Franchisees will conduct business within the designated Territory, servicing only Customer Accounts assigned to them within that Territory. Stratus Long Island will sell numerous Stratus janitorial franchises in the same area and may establish company-owned outlets to service overflow or special-nature cleaning. The franchisor and its parent company reserve the right to use various channels of distribution (e.g., Internet, telemarketing) within the Territory. No sales or market penetration quotas are required, and no options or rights of first refusal to acquire additional franchises are granted. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 12 years |
| Renewal Term | 12 years |
| Renewal Fee | $0 |
| Renewal Conditions | To renew, the franchisee must provide written notice of intent to renew 60 to 180 days prior to expiration, execute a new renewal agreement at least 30 days prior to expiration, execute a General Release, not be in default of the agreement, and update all equipment and supplies to then-current system standards for new franchisees. |
| Transfer Fee | 5% of yearly Gross Revenues of Customer Accounts being sold/transferred (minimum $750) or 10% of sales price if transfer 10% or more of ownership in Franchisee. |
| Transfer Conditions | Approval requires the new franchisee to qualify, payment of a transfer fee, approval of the purchase agreement, completion of the Brand Certification Program, and signing of a new franchise agreement. A general release of claims against the franchisor and its affiliates is also required from the transferor. |
| Termination for Cause | The franchisor can terminate the agreement if the franchisee defaults on obligations, breaches the agreement, discontinues customer service without consent, attempts unauthorized assignment, abandons the business, uses abusive language, is convicted of a felony impairing goodwill, or commits theft. Cure periods (typically 10 days) may apply for some defaults, while others result in immediate termination. |
| Non-Compete Period | During the term of the agreement and for a period of two (2) years from the date of expiration or termination. |
| Non-Compete Details | Within the Territory and a distance of 20 miles from the Territory, the franchisee, its affiliates, and owners are prohibited from diverting, soliciting, or attempting to divert any business or customer of the franchisor, the Franchised Business, or any other franchisee. They are also prohibited from providing commercial cleaning and maintenance services to any business or customer serviced by them or another franchisee under the System and Marks within the previous 18-month period prior to expiration or termination, or performing any act injurious to the goodwill of the Marks. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | Franchisees must participate in the day-to-day operation and management of the Franchised Business. One owner, holding at least 50% ownership, must be designated as the managing owner and be in charge of directing operations. The franchisor believes this owner/operator concept ensures consistently high quality. Franchisees have discretion over staffing, hours, and work completion methods, provided they comply with customer requirements and System Standards. All employees, including owners working in the business, must be hired by the franchisee, who is solely responsible for all employment decisions and compliance with labor laws. |
| Required Suppliers | Franchisees must use Stratus's own private branded chemicals. A basic starter package of professional quality equipment and supplies must be purchased from an approved vendor before servicing customer accounts. |
| Supply Restrictions | Franchisees must purchase or lease equipment and purchase chemicals and supplies according to Stratus Long Island's specifications, as outlined in the Franchise Agreement, Brand Standards Manual, or other directives. These specifications include standards for quality, safety, OSHA compliance, cleaning efficiency, compatibility with approved chemicals and economy. Stratus branded chemicals are mandatory. Non-approved items or suppliers require written approval from Stratus Long Island. |
| Franchisor Revenue from Suppliers | During its most recent fiscal year (ending December 31, 2021), Stratus Long Island had revenues of approximately $17,384 from the sale of equipment, chemicals, supplies, insurance, or uniforms to Unit Franchisees, representing less than 1% of its total revenues of $3,155,342. SBS Franchising (parent company) received approximately $5,000 in rebates from its supplier of green cleaning chemicals, Nyco, from purchases made by master franchisees and franchisees, which was less than 1% of its total revenues. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | Yes |
| Description | Stratus Long Island may offer to finance a portion of the initial franchise fee and the account acquisition fee. Financing decisions are made within one week based on the franchisor's judgment of business soundness. Stratus Long Island does not sell, assign, or discount notes or contracts to third parties, but reserves the right to do so in the future. For the initial franchise fee, a down payment is required, with the balance financed at 15% interest per year, repaid in 36 monthly installments. For the account acquisition fee, options include a cash payment (with a 10% discount), a sweat equity option with monthly payments over less than six months (no interest), or a loan option with a down payment and the balance financed at 15% interest per year, repaid in up to 12 monthly installments. Default on financing can lead to acceleration of payments and termination of the franchise agreement. |
Stratus Building Solutions of Long Island Franchise Earnings — Item 19
Stratus Building Solutions of Long Island 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.
Stratus Building Solutions of Long Island 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.
Stratus Building Solutions of Long Island Litigation & Risk Flags
Clean Litigation RecordStratus Building Solutions of Long Island has no pending litigation actions listed in their FDD. There is also no bankruptcy history disclosed.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Stratus Building Solutions of Long Island System Growth
Total Units
39
Franchised
39
Company-Owned
0
Stratus Building Solutions of Long Island currently operates 39 franchised locations and 0 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2019 | 3 | 8 | 57 |
| 2020 | 4 | 13 | 48 |
| 2021 | 4 | 13 | 39 |
Transfers: 0 | Closures: 34
State Registrations
Registered in 14 states: CA, HI, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI
Franchisor Financials (Item 21)
Revenue
$3.2M
Net Income
$223K
Total Assets
$970K
Audited by GRUBER PALUMBERI RAFFAELE FRIED, P.C. for year ending December 31st.
Stratus Building Solutions of Long Island Franchise — FAQ
The total investment to open a Stratus Building Solutions of Long Island franchise ranges from $3,550 to $34,450, per their Franchise Disclosure Document. This includes the initial franchise fee of $2,700. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Stratus Building Solutions of Long Island charges a royalty fee of 5% of Gross Revenues of gross sales, plus a 1% of Gross Revenues for the preceding calendar month (currently not imposed) contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Stratus Building Solutions of Long Island 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 Stratus Building Solutions of Long Island to ensure you have the most up-to-date version.
Stratus Building Solutions of Long Island 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.
Stratus Building Solutions of Long Island has been franchising since 2019. The FDD shows an investment range of $3,550-$34,450, a 5% of Gross Revenues royalty, and no Item 19 earnings disclosure. There is no pending litigation. Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $2,700 and the total investment ranges from $3,550 to $34,450 depending on location size and market. 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 Stratus Building Solutions of Long Island and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Stratus Building Solutions of Long Island or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com