About Security Data Supply Businesses Franchise
Security Data Supply franchises are product and service distribution businesses that sell security products, low voltage Cat 5E, Cat 6, fiber optic networking, fire alarm systems, complete audio, video, CCTV, central VAC, access control and related products and services to licensed installers and re-sellers who service commercial or residential customers.
Franchisees operate from a specified headquarters location with warehouse and distribution capabilities, managing inventory, processing orders, and building relationships with licensed security installers in their designated territory.
The Security Data Supply franchise model is unique in that it serves as a wholesale distribution channel specifically targeting licensed installers and re-sellers in the security and low voltage technology industry.
Security Data Supply Businesses Franchise Cost & Fees
Minimum Investment
$433K
Average Investment
$1.4M
Maximum Investment
$2.4M
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $50,000 | One-time payment upon signing |
| Royalty Fee | 4% to 6% markup on product purchases of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | Up to 2% of Gross Sales (System Fund Fee, if established) | National brand fund |
| Total Investment Range | $433,200 – $2,393,500 | Includes build-out, inventory, working capital |
The investment range of $433K–$2.4M reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (4% to 6% markup on product purchases) and marketing fee (Up to 2% of Gross Sales (System Fund Fee, if established)) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Franchise Fee - Single Unit | $50,000 | $50,000 |
| Establishment Package Fee | $10,000 | $10,000 |
| Additional Headquarters Visit Fees | $0 | $1,000 |
| Approved/Designated Bookkeeper Fees | $1,000 | $5,000 |
| Initial Training | $0 | $0 |
| Additional Training Fees | $0 | $20,000 |
| Utility Deposits | $500 | $1,500 |
| Construction, Improvements and other build-out not included with Establishment Package | $5,000 | $150,000 |
| Professional Fees (lawyer, accountant, etc.) | $2,000 | $10,000 |
| Rent - 3 months | $5,000 | $22,500 |
| Security Deposits | $2,000 | $16,000 |
| Inventory, Equipment and Start-Up Supplies | $105,000 | $1,500,000 |
| Insurance (premium for first year) | $2,500 | $5,000 |
| State and local business licenses, permits, filing fees, etc. | $100 | $1,000 |
| Signage | $100 | $1,500 |
| Additional Funds - 3 months | $250,000 | $600,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | $5,000 plus costs and expenses of training the transferee |
| Technology Fee | $330 per month per user (Software Hosting Fee) |
| Audit Fee | Cost of attorneys, independent accountants, travel expenses, room and board, and compensation of employees |
| Product Purchases | 4% to 6% markup on sales |
| System Fund Fee | Up to 2% of Gross Sales (if established) |
| Ops Team Member Fee | $6,000 per month plus expenses |
| Software Hosting Fee | $330 per month per user |
| Additional Training or Assistance | Up to $500 per day per trainee plus travel |
| Additional Headquarters Visit Fees | $1,000 per additional visit |
| Bookkeeping Oversight Fee | $5,000+ per year |
| Administrative Fee | 15% of any amount paid on your behalf |
| Interest | Lesser of 18% per year or highest contract rate allowed by law |
| Late Payment Penalties | Up to 18% of the late amount |
| Headquarters Relocation Fee | $2,000 plus costs of relocation |
| Business Management Fee | Up to 15% of Gross Sales or $7,500 per month plus expenses |
| Fee For Breaching Non-Competition Covenants | Greater of $300,000 or actual damages |
| Local Advertising Cooperative | Voluntary participation |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 3 to 8 days classroom training and 5 to 12 days on-the-job training (total 31 to 62 hours classroom, 42 to 92 hours on-the-job) |
| Classroom Training | 31 to 62 hours |
| On-the-Job Training | 42 to 92 hours |
| Training Location | Corporate Headquarters in Mandeville, Louisiana (classroom); at or near franchisee's location (on-the-job) |
| Additional Training | Employee Training for up to 5 employees for up to 30 days as part of grand opening/training services; additional mandatory training offered 2 to 3 times per year |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Exclusive (Primary Area) with non-exclusive Marketing Area |
| Exclusive Territory | Yes |
| Territory Size | Geographic area ranging from one zip code or telephone area code to an area as large as a state, generally encompassing at least 50,000 persons |
| Description | Franchisees receive an exclusive Primary Area where the franchisor will not grant another franchise or operate a competing Security Data Supply Business, as long as the franchisee meets the MSL (minimum sales level) and MPL (minimum purchase level) requirements. Franchisees also receive a larger Marketing Area in which they may market products and services, but the Marketing Area is not exclusive. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 10 years |
| Renewal Term | 10 years (Successor Term) |
| Renewal Conditions | Must provide written notice at least 1 year prior to conclusion of the Term; must remain in compliance with all terms of the Franchise Agreement; renewal is at franchisor's sole discretion; may be required to sign a new agreement with materially different provisions |
| Transfer Fee | $5,000 plus costs and expenses of training the transferee |
| Transfer Conditions | All transfers must be approved by franchisor; new franchisee must have sufficient business experience and financial resources; all amounts due must be paid; transferee must complete training and agree to Franchise Agreement terms; $5,000 transfer fee must be paid; general release must be executed |
| Termination for Cause | Curable defaults: 5 days for discrimination/human rights/health/safety violations, 10 days for monetary defaults, 30 days for general noncompliance. Non-curable defaults include material misrepresentation, failure to complete training, abandonment, felony conviction, unauthorized transfers, and insolvency. |
| Non-Compete Period | 2 years |
| Non-Compete Details | No interest in any Competitive Business for 2 years at or within 50 miles of the Headquarters, Primary Area or Marketing Area, or within 50 miles of any other Security Data Supply Business or its territories. Also applies via electronic commerce or alternative channels of distribution. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | A full-time Business Manager is required at all times. If the franchisee is a business entity, one principal owner (at least 20% ownership) must serve as Business Manager. The Business Manager must be present at the Business for at least 50% of operating hours and have management responsibility and authority on a day-to-day basis. |
| Required Suppliers | Security Data Supply, LLC and Dealer's Choice Products, LLC serve as primary suppliers; bookkeeping/oversight services from designated supplier (currently Moyles & Associates of Slidell, Louisiana) |
| Supply Restrictions | Franchisees must purchase nearly all goods and services from the franchisor, its predecessor, or its affiliates. 100% of overall purchases must come from franchisor, affiliates, approved or designated suppliers. |
| Franchisor Revenue from Suppliers | Security Data Supply, LLC received $33,008,508 in revenues from franchised businesses in 2023 (99.6% of total revenues of $33,131,437). Dealer's Choice Products, LLC received $55,461.73 from franchised businesses in 2023 (100% of total revenues). Franchisor also receives rebates from Approved Suppliers ranging from 1% to 10% of the purchase price. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | No |
| Description | We do not offer financing arrangements of any kind to you. |
Security Data Supply Businesses Franchise Earnings — Item 19
Security Data Supply Businesses 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.
Security Data Supply Businesses 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.
Security Data Supply Businesses Litigation & Risk Flags
Clean Litigation RecordSecurity Data Supply Businesses 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.
Security Data Supply Businesses System Growth
Total Units
19
Franchised
11
Company-Owned
8
Security Data Supply Businesses currently operates 11 franchised locations and 8 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2022 | 0 | 0 | 9 |
| 2023 | 0 | 0 | 13 |
| 2024 | 2 | 0 | 20 |
Transfers: 0 | Closures: 0
State Registrations
Registered in 6 states: AL, AZ, LA, NV, OK, TX
Security Data Supply Businesses Franchise — FAQ
The total investment to open a Security Data Supply Businesses franchise ranges from $433,200 to $2,393,500, per their Franchise Disclosure Document. This includes the initial franchise fee of $50,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Security Data Supply Businesses charges a royalty fee of 4% to 6% markup on product purchases of gross sales, plus a Up to 2% of Gross Sales (System Fund Fee, if established) contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Security Data Supply Businesses 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 Security Data Supply Businesses to ensure you have the most up-to-date version.
Security Data Supply Businesses 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.
Security Data Supply Businesses has been franchising since 2010. The FDD shows an investment range of $433,200-$2,393,500, a 4% to 6% markup on product purchases 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 $50,000 and the total investment ranges from $433,200 to $2,393,500 depending on location size and market. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
Similar Business Services Franchises
Interested in Security Data Supply Businesses?
Get free info on this franchise. We will send you a detailed FDD report by email.
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 Security Data Supply Businesses and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Security Data Supply Businesses or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com