About Security 101 Franchise
Security 101 is a commercial security franchise that provides sales, engineering, installation, and monitoring of electronic access control, closed circuit television, and intrusion detection systems for commercial enterprises.
Franchisees operate a Commercial Security Business within a protected territory, marketing and serving commercial clients with comprehensive security solutions.
The target customers are commercial enterprises requiring security infrastructure, and franchisees handle everything from initial sales consultations to system design, installation, and ongoing service and monitoring.
Security 101 Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $59,500 | One-time payment upon signing |
| Royalty Fee | 4% to 6% of Gross Billings of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 0.5% of monthly Gross Billings (not currently collected) | National brand fund |
| Total Investment Range | $130,100 – $235,000 | Includes build-out, inventory, working capital |
The investment range of $130K–$235K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (4% to 6% of Gross Billings) and marketing fee (0.5% of monthly Gross Billings (not currently collected)) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $59,500 | $59,500 |
| Travel & Living Expenses while Training | $4,000 | $8,000 |
| Rent | $2,250 | $4,500 |
| Leasehold Improvements | $500 | $2,500 |
| Furniture, Equipment & Signage | $4,900 | $7,500 |
| Computer System | $1,500 | $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 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | 25% of then-current Initial Franchise Fee |
| Renewal Fee | 10% of then-current Initial Franchise Fee |
| Technology Fee | $500 per month (101 Ware Software Fee) |
| Audit Fee | $750 to $3,000 |
| Local Advertising | At least 2% of monthly Gross Billings |
| Cross Sales Fee | 70% of Gross Billings for Cross Sales |
| Late Fee | $50 |
| Interest | Lesser of 18% per annum or maximum legal rate |
| Additional Franchise Management Training | $750 per person |
| Insurance | $1,000 to $3,000 |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | Approximately 8 weeks total (3 weeks at headquarters, 2 weeks at Orlando franchisee location, 3 weeks at franchisee's place of business plus 1 week preparation) |
| Classroom Training | 120 hours |
| On-the-Job Training | 80 hours (plus 120 hours at franchisee's location) |
| Training Location | West Palm Beach, Florida (classroom); Orlando, Florida franchisee location (on-the-job); and franchisee's place of business |
| Additional Training | No additional training programs or refresher courses currently required, but franchisor reserves the right to require them in the future. Additional persons beyond 2 cost $750 each. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Protected |
| Exclusive Territory | No |
| Territory Size | Defined by Metropolitan Statistical Areas (MSAs), zip codes, county or municipal boundaries, or geographic or highway boundaries. Classified as A (population over 1,500,000), B (500,000-1,500,000), or C (under 500,000) markets. |
| Description | Franchisees receive a Protected Territory where the franchisor will not establish a company-owned or another franchised Security 101 business, except for National Account Sales or Cross Sales. However, the franchisor retains rights to sell through alternate channels, acquire competitive businesses, and service National Accounts within the territory. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | 10 years |
| Renewal Fee | 10% of then-current Initial Franchise Fee |
| Renewal Conditions | Must be in good standing, satisfy renewal requirements, sign new agreement (which may have different terms), pay any balances outstanding, comply with modernization and training requirements, renew lease, sign a release, and pay renewal fee. |
| Transfer Fee | 25% of then-current Initial Franchise Fee |
| Transfer Conditions | New franchisee must qualify, transfer fee paid, purchase agreement approved, training arranged, modernization requirements completed, release signed by transferor, all fees owed paid, and current agreement signed by new franchisee. |
| Termination for Cause | Franchisor can terminate only if franchisee defaults. Curable defaults include failure to open within 180 days, non-payment of fees, non-reporting, failure to meet standards. Non-curable defaults include conviction of felony, repeated defaults, abandonment, trademark misuse, unapproved transfers, bankruptcy, insolvency, or false statements. |
| Non-Compete Period | 2 years |
| Non-Compete Details | For 2 years after termination, expiration, or transfer, franchisee may not own or manage a Competitive Business (any business where 10% or more of sales include commercial security products or services) at the former premises, within 50-mile radius of Protected Territory outer boundary, or inside any Security 101 protected territory. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | No |
| Participation Details | The franchisee is not required to personally supervise the business, but the franchise must be directly supervised on a daily basis by a manager who has successfully completed the franchisor's training program. Each individual who owns 5% or greater interest must sign a Guarantee. |
| Required Suppliers | Franchisees must purchase certain equipment, products, merchandise and supplies from the franchisor, its affiliates, or approved suppliers. 101 Ware, LLC (an affiliate) is the only approved supplier for the 101 Ware software. |
| Supply Restrictions | Franchisees must use only approved products, supplies, and equipment. Products not on approved lists must be submitted for approval. Franchisees must also maintain specified insurance coverage. |
| Franchisor Revenue from Suppliers | During fiscal year ending December 31, 2021, the franchisor did not derive any revenues from the sale of products nor receive payments from third party suppliers. Affiliate 101 Ware, LLC derived $181,000 (42% of its total revenue) from licensing 101 Ware to franchisees. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | The franchisor does not offer direct or indirect financing and does not guarantee notes, leases, or obligations. |
Security 101 Franchise Earnings — Item 19
Past financial performance does not guarantee future results. Individual results will vary.
Security 101 Litigation & Risk Flags
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Security 101 System Growth
Security 101 currently operates 39 franchised locations and 10 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2019 | 4 | 0 | 45 |
| 2020 | 2 | 1 | 46 |
| 2021 | 4 | 11 | 49 |
Transfers: 1 | Closures: 1
State Registrations
Registered in 28 states: AL, AZ, CA, CO, CT, DC, FL, GA, IL, IN, LA, ME, MA, MI, MN, MO, NV, NJ, NY, NC, OH, PA, SC, TN, TX, UT, VA, WA
Franchisor Financials (Item 21)
Audited by DiSalvo & Associates, PLLC for year ending December 31.
Security 101 Franchise — FAQ
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