About Stratus Building Solutions of Maryland Capital Region Franchise
Stratus Building Solutions of Maryland Capital Region is a regional commercial cleaning franchise serving the greater Maryland and Washington, D.C.
area.
As part of the SBS Franchising, LLC network, the brand provides janitorial services, facility maintenance, and green cleaning solutions to commercial properties throughout the capital region.
Stratus Building Solutions of Maryland Capital Region Franchise Cost & Fees
Minimum Investment
$5K
Average Investment
$40K
Maximum Investment
$75K
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $3,600 to $62,100 | One-time payment upon signing |
| Royalty Fee | 5% of Gross Revenues of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 1% of Gross Revenues | National brand fund |
| Total Investment Range | $5,150 – $74,850 | Includes build-out, inventory, working capital |
The investment range of $5K–$75K 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) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee (Note 1) | $3,600 | $62,100 |
| Training Expenses (Note 2) | $0 | $500 |
| Professional Costs (Note 3) | $0 | $2,000 |
| Lease Deposit (Note 4) | $0 | $750 |
| Vehicle (Note 5) | $0 | $500 |
| Insurance (Note 6) | $100 | $2,500 |
| Equipment & Supply Starter Package (Note 7) | $1,350 | $4,000 |
| Business Licenses (Note 8) | $75 | $500 |
| Additional Funds (4 months after signing Franchise Agreement) (Note 9) | $25 | $2,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | 5% of yearly Gross Revenue of customer accounts being sold/transferred (minimum $750); 10% of sales price if transfer 10% or more of ownership in Franchisee |
| Renewal Fee | No payment of an additional franchise fee or renewal fee will be required. |
| Administration | 10% of Gross Revenues |
| Business Insurance (Optional) | 5% of Gross Revenues |
| Additional 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 | $250 |
| Franchise Requested Account Transfer Fee | $50.00 administration fee plus the greater of (a) $100.00 or (b) 10% of month Gross Revenue for subject account |
| Customer requested “Trouble Transfer Fee” | $50.00 administration fee and $75.00 complaint fee plus the greater of (a) $100.00 or (b) 10% of month Gross Revenue for subject account |
| Account Abandonment Fee | Loss of all revenue owed plus Trouble Transfer Fee |
| Complaint Fees | $75.00 for the second or more complaints within a 120 calendar day period |
| Failure to Service Fee | Greater of $75.00 or 10% of monthly billing |
| Service Fees | $50.00 per hour for regional office time spent fixing issues; $50 fee for not turning in monthly statement by 10th; $25 fee per customer evaluation not completed by 10th |
| Account Cancellation for Cause Fee | Equivalence of 50% of month’s gross billing on 1st account lost, 75% for 2nd, and 1 month for every account lost thereafter in a 12-month period, plus $75 complaint fee, any pertinent Service Fee and expenses |
| Isolated Services | 10% of the price for the services stated in the contract |
| Re-Training | $75 per class |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 8.5 hours |
| Classroom Training | 8.5 hours |
| On-the-Job Training | 0 hours |
| Training Location | Greenbelt, Maryland or existing customer's buildings within Howard County, Montgomery County, or Prince George’s County, Maryland |
| Additional Training | Advisory services on promotional efforts, business/operational problems, sales/marketing/financial data analysis. Optional additional training sessions (individual or group) with no cost for group seminars. Refresher training sessions offered as needed. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Non-exclusive |
| Exclusive Territory | No |
| Description | Franchisees operate within a designated territory but do not receive an exclusive territory. The franchisor may sell other franchises and operate company-owned outlets in the same territory. The franchisee's performance of services is limited to designated customer account locations within the territory, and they may not service customers outside it. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 12 years |
| Renewal Term | 12 years |
| Renewal Fee | No payment of an additional franchise fee or renewal fee will be required. |
| Renewal Conditions | Franchisee must provide written notice of intent to renew 180-60 days prior to expiration, sign a new franchise agreement (potentially with different terms) 30 days prior to expiration, be in good standing with no default, and update equipment and supplies to current system standards. |
| Transfer Fee | 5% of yearly Gross Revenue of customer accounts being sold/transferred (minimum $750); 10% of sales price if transfer 10% or more of ownership in Franchisee. No fee for transfers to immediate family members or wholly-owned companies. |
| Transfer Conditions | Requires franchisor's written consent (not unreasonably withheld), new franchisee must meet qualifications, all franchisee obligations and debts must be paid, buyer must undergo training, and transferee must sign a new Unit Franchise Agreement with the same expiration date and no greater payments. Transferor must execute a general release. |
| Termination for Cause | Failure to perform obligations or breach of agreement, discontinuance of a customer account, franchisee insolvency/bankruptcy, unauthorized assignment/transfer, abandonment of business, abusive/threatening behavior, felony conviction, or theft from an account. Cure periods apply for some defaults, while others result in immediate termination. |
| Non-Compete Period | During the term of the Agreement and for 2 years after termination or expiration. |
| Non-Compete Details | Within the franchisee's territory or a 20-mile radius, the franchisee and its affiliates/owners may not divert/solicit business from the franchisor or other franchisees, provide commercial cleaning/maintenance services (other than approved ones using Stratus marks), or perform acts injurious to the Stratus goodwill. This does not restrict soliciting customers for Additional Business Services during the term. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | One owner holding at least 50% ownership must be named as the managing owner and be in charge of directing the operations of the franchisee business. Franchisee must participate in the day-to-day functions. |
| Required Suppliers | Franchisor (for private branded chemicals, equipment, and supplies according to specifications) |
| Supply Restrictions | Franchisees must purchase and use SBS Franchising's private branded chemicals. Equipment and certain chemicals/supplies must be purchased or leased according to franchisor specifications, as outlined in the Franchise Agreement or operations manual. Non-approved items require franchisor approval based on performance standards. |
| Franchisor Revenue from Suppliers | $61,563.72 from sale of equipment, chemicals, supplies, insurance, and uniforms (Stratus Maryland Capital Region); $5,000 in rebates from green cleaning chemicals supplier (SBS Franchising) |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | Yes |
| Description | The franchisor may offer to finance a portion of the initial franchise fee and the Account Acquisition Fee. For the initial franchise fee, financing ranges from $4,000 to $69,000, with a down payment of $1,000 to $47,000. The balance accrues 8% annual interest, repaid in 36 equal monthly installments via a promissory note. For the Account Acquisition Fee, options include cash payment (10% discount), sweat equity (monthly deductions from statements with no interest), or a loan option (balance accrues 8% annual interest, repaid in up to 12 equal monthly installments). Interest on default is 18%. |
Stratus Building Solutions of Maryland Capital Region Franchise Earnings — Item 19
Average Revenue
$5K
Sample Size
18 units
Past financial performance does not guarantee future results. Individual results will vary.
Stratus Building Solutions of Maryland Capital Region Litigation & Risk Flags
Clean Litigation RecordStratus Building Solutions of Maryland Capital Region has no pending litigation actions listed in their FDD.
Bankruptcy History DisclosedA bankruptcy disclosure is present in this FDD.
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 Maryland Capital Region System Growth
Total Units
54
Franchised
53
Company-Owned
1
Stratus Building Solutions of Maryland Capital Region currently operates 53 franchised locations and 1 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2019 | 15 | 2 | 22 |
| 2020 | 18 | 0 | 37 |
| 2021 | 18 | 2 | 54 |
Transfers: 0 | Closures: 2
State Registrations
Registered in 13 states: CA, MD, NY, SD, HI, MI, ND, VA, IL, MN, OR, RI, WI
Franchisor Financials (Item 21)
Revenue
$1.3M
Net Income
$35K
Total Assets
$987K
Audited by Matlock Clements Certified Public Accountants for year ending June 30, 2022.
Stratus Building Solutions of Maryland Capital Region Franchise — FAQ
The total investment to open a Stratus Building Solutions of Maryland Capital Region franchise ranges from $5,150 to $74,850, per their Franchise Disclosure Document. This includes the initial franchise fee of $3,600 to $62,100. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Stratus Building Solutions of Maryland Capital Region charges a royalty fee of 5% of Gross Revenues of gross sales, plus a 1% of Gross Revenues contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Stratus Building Solutions of Maryland Capital Region 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 Maryland Capital Region to ensure you have the most up-to-date version.
According to the Item 19 financial performance representation in their FDD, Stratus Building Solutions of Maryland Capital Region franchise owners report average revenue of $5K. This is based on a sample of 18 units. Past performance does not guarantee future results.
Stratus Building Solutions of Maryland Capital Region has been franchising since 2015. The FDD shows an investment range of $5,150-$74,850, a 5% of Gross Revenues royalty, and includes an 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 $3,600 to $62,100 and the total investment ranges from $5,150 to $74,850 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 Maryland Capital Region 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 Maryland Capital Region or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com