About Stratus Building Solutions Franchise
Stratus Building Solutions is a commercial cleaning franchise that provides janitorial and facility maintenance services to offices, medical facilities, schools, and other commercial properties.
The brand has built a reputation for green cleaning practices and customizable service packages tailored to each client's needs.
Stratus Building Solutions has been franchising since 2021 and offers a tiered entry structure designed to accommodate a wide range of investment levels.
Stratus Building Solutions Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $3,600 - $62,100 | One-time payment upon signing |
| Royalty Fee | 5% of Gross Billings of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | Up to 1% of Gross Billings (currently $0) | National brand fund |
| Total Investment Range | $4,450 – $79,750 | Includes build-out, inventory, working capital |
The investment range of $4K–$80K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (5% of Gross Billings) and marketing fee (Up to 1% of Gross Billings (currently $0)) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee (1) | $3,600 | $69,000 |
| 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 Billings of Customer Contracts (minimum $750) or 10% of sales price if transfer 10% or more of ownership in Franchisee |
| Renewal Fee | $0 |
| Administration Fee | 10% of Gross Billings for the preceding calendar month |
| Business Insurance Fee (Optional) | [5%] of Gross Billings for the preceding calendar month |
| Additional Customer Contracts – Account Acquisition | $ (additional monthly billing provided by the new Customer Contract) - $ (monthly owed by you to Stratus) x (3 or 4 or 5) = Account Acquisition Fee |
| Name Changes - Additions/Deletions | Flat fee of $250 |
| Customer Contract Transfer Fee | $50 administration fee, plus the greater of $100 or 10% of prior month’s billings under Customer Contract |
| Customer Requested Troubled Transfer Fee | $50 administration and $75 complaint fee, plus the greater of $100 or 10% of prior month’s billings under Customer Contract |
| Account Abandonment Fee | Loss of all revenue owed, plus Customer Requested Troubled 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 prior month’s billings under Customer Contract |
| 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; $25 fee per Customer evaluation not completed |
| Account Cancellation for Cause Fee | $75 complaint fee, plus 50% of one month’s Gross Billings on the first Customer Contract lost; 75% of one month’s Gross Billings for the second Customer Contract lost; and one full month’s Gross Billings for every Customer Contract 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 | Our or a local Customer’s office |
| Additional Training | Additional training under the Brand Certification Program may be available, including mandatory group seminars at no cost to the franchisee. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Non-exclusive |
| Exclusive Territory | No |
| Description | Your Customers and Customer Contracts will be located in the Territory which will be described in the Franchise Agreement. The franchisor may grant other Stratus franchises in the Territory and may compete with you through company-owned outlets or other channels of distribution. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 12 years |
| Renewal Fee | $0 |
| Renewal Conditions | Notify franchisor of intent to renew 180-60 days prior to expiration, sign a new franchise agreement (potentially with different terms), no default under current agreement, and update equipment and supplies. |
| Transfer Fee | 5% of yearly Gross Billings of Customer Contracts (minimum $750) or 10% of sales price if transfer 10% or more of ownership in Franchisee |
| Transfer Conditions | New franchisee qualifies, transfer fee paid, purchase agreement approved, Brand Certification Program arranged, release signed by you and current agreement signed by new franchisee. |
| Termination for Cause | Franchisor can terminate if franchisee is in default of the Franchise Agreement. Cure period of 10 days for curable defaults; termination for failure to meet obligations, discontinuance of a Customer Contract without prior consent, attempt to assign agreement or assets without prior consent, or breach of Franchise Agreement. |
| Non-Compete Period | 2 years |
| Non-Compete Details | During the term of the franchise and for 2 years after termination/expiration, franchisee is prohibited from diverting/soliciting business/customers or providing commercial cleaning/maintenance services within the Territory or 20 miles from the Territory to customers serviced by the system within the previous 18 months, or otherwise damaging goodwill. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | The franchisee must participate in the day-to-day operation and management of the Franchised Business. One owner holding at least 50% ownership must be the managing owner and direct operations. All owners, managers, and supervisors must complete the Brand Certification Program. |
| Required Suppliers | Franchisees must use Stratus's private branded chemicals and purchase or lease equipment and certain chemicals and supplies according to franchisor specifications from approved suppliers. |
| Supply Restrictions | Franchisees must submit a 'Request for Approval' to purchase non-approved equipment, chemicals, and supplies or from non-approved suppliers. Approval is based on performance indications including cleaning efficiency, safety, ease of application, durability, and economy. |
| Franchisor Revenue from Suppliers | $21,088.66 in revenue from the sale of equipment, chemicals, supplies, insurance, or uniforms to Unit Franchisees in its most recent fiscal year. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | Yes |
| Description | Stratus of North Chicago may offer to finance a portion of the initial franchise fee and the Account Acquisition Fee. Financing for the initial franchise fee requires a down payment ($1,000-$47,000) and a promissory note for the remainder, payable over three years with 15% annual interest. Account Acquisition Fee financing can be done via a 'sweat equity' option (deducted from monthly statements with no interest) or a 'loan option' (payable over three years with 15% annual interest). |
Stratus Building Solutions Franchise Earnings — Item 19
Stratus Building Solutions 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 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.
Stratus Building Solutions System Growth
Stratus Building Solutions currently operates 63 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 |
|---|---|---|---|
| 2020 | 4 | 3 | 17 |
| 2021 | 9 | 2 | 25 |
| 2022 | 46 | 16 | 63 |
Transfers: 0 | Closures: 16
State Registrations
Registered in 14 states: CA, HI, IL, IN, MD, MI, MN, NY, ND, RI, SD, VA, WA, WI
Stratus Building Solutions Franchise — FAQ
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