About Summit Building Services Franchise
Summit Building Services is a commercial cleaning franchise providing janitorial and maintenance services to a wide range of facilities including industrial businesses, offices, medical facilities, schools, multi family buildings, and government institutions.
Franchising since 2024, the brand serves commercial property owners and property managers who need reliable, professional cleaning solutions.
The initial franchise fee is $12,000 per territory, making it one of the most affordable entry points in the commercial cleaning franchise category.
Summit Building Services Franchise Cost & Fees
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $12,000 per Territory | One-time payment upon signing |
| Royalty Fee | 9% of the first $200,000 of Gross Revenue each calendar year; 8% of Gross Revenue between $200,001 and $300,000 each calendar year; and 7% of Gross Revenue over $300,001 each calendar year. of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | Up to 3% of weekly Gross Revenue. The current Brand Fund Contribution is 2% of weekly Gross Revenue. | National brand fund |
| Total Investment Range | $25,500 – $46,200 | Includes build-out, inventory, working capital |
The investment range of $26K–$46K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (9% of the first $200,000 of Gross Revenue each calendar year; 8% of Gross Revenue between $200,001 and $300,000 each calendar year; and 7% of Gross Revenue over $300,001 each calendar year.) and marketing fee (Up to 3% of weekly Gross Revenue. The current Brand Fund Contribution is 2% of weekly Gross Revenue.) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchise Fee | $9,000 | $12,000 |
| Furniture, Fixtures, and Security System | $0 | $1,000 |
| Equipment | $500 | $1,500 |
| Computer System & Software | $8,000 | $10,000 |
| Opening Inventory | $200 | $1,000 |
| Signage | $1,000 | $1,500 |
| Insurance | $300 | $700 |
| Training Expenses | $1,000 | $2,500 |
| Professional Fees | $500 | $1,000 |
| Additional funds – 3 Months | $5,000 | $15,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | 70% of the then-current initial franchise fee. For transfers to an existing franchisee in good standing, the transfer fee is 50% of the then-current initial franchise fee. For transfers among owners that do not change management control, the transfer fee is $1,500. |
| Renewal Fee | $2,000 |
| Technology Fee | Currently $125 per month. We reserve the right to increase this amount by up to 10% annually. |
| Audit Fee | Varies |
| Client Billing Fee | 2% of Gross Revenue |
| Bid assistance | Currently $75, this is an optional service |
| Telemarketing assistance (Part-time Equivalent) | $2,000 per month |
| Telemarketing assistance (Full-time Equivalent) | $4,000 per month |
| Client Collections Fee | 1% of Gross Revenue for this optional service |
| Recruiting Assistance Fee | 2% of Gross Revenue for this optional service |
| Local Advertising Marketing and Promotional Expenditures | Recommended no less than $450 per calendar month |
| Interest | 1.5% per month from due date, or maximum allowed by law |
| Late Charge | $100 |
| Non-Sufficient Funds Fee | $250 |
| Quality Review Services Fee | Up to $200 Monthly |
| Additional Training | Currently $350 per person (reasonable fee) |
| Successor Agreement Fee | 10% of the then-current franchise fee |
| Indemnification | Amount of loss or damages, plus costs. |
| Conference Fee | Current rate is $600 |
| Examination of Books and Records | Actual cost of examination plus related expenses. |
| Post-Termination or Post-Expiration Expenses | Costs and expenses |
| Reimbursement of Legal Fees and Expenses | Our costs and expenses, including but not limited to attorneys’ fees |
| Liquidated Damages | Royalty Fees and Brand Marketing Fund Contributions for the lesser of (i) 3 years, or (ii) the balance of the Term. |
| Insurance | Amount paid by us for your insurance obligations, plus a 10% administrative fee and our legal fees, if any. |
| Taxes | Amount of taxes |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 58 hours |
| Classroom Training | 54 hours |
| On-the-Job Training | 4 hours |
| Training Location | Stow, OH (for classroom), Your site (for field training) |
| Additional Training | The franchisor may offer mandatory or optional additional training programs, franchisee conferences, or annual conventions (up to 10 days per year). A reasonable fee (currently $350 per person) may be imposed for additional training programs. Franchisees are responsible for travel, lodging, meals, and wages. On-site remedial training is available upon request, with costs reimbursed by the franchisee. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Limited non-protected |
| Exclusive Territory | No |
| Territory Size | Minimum population of up to 150,000 within a geographic area defined by ZIP codes or other readily ascertainable geographic boundaries. |
| Description | The territory is located in all or a portion of a listed town, city or county, identified by contiguous ZIP codes. It's determined individually based on demographic data including household income, residential population, median home value, and commercial establishments. Franchisees can recruit clients outside their territory but must direct most recruitment dollars within their assigned territory. Cannot solicit clients more than 50 miles from the office address without approval. The franchisor reserves rights to sell products/services through alternative distribution channels within the territory. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 5 years |
| Renewal Term | Two (2) additional terms of five (5) years each |
| Renewal Fee | $2,000 |
| Renewal Conditions | Be in full compliance, have no more than three (3) events of default during current term, provide written notice at least six months before term end, execute a new franchise agreement, pay renewal fee, maintain vehicle standards, execute general release, comply with then-current qualifications and training requirements. New agreement may have materially different terms. |
| Transfer Fee | 70% of the then-current initial franchise fee. 50% for transfers to existing franchisees in good standing. $1,500 for transfers among owners that do not change management control. |
| Transfer Conditions | Transferee must meet franchisor's standards (good character, business experience, financial resources), complete initial training, franchisee must have paid all amounts owed, transferee and franchisee must execute a general release, franchisor must approve material terms, franchisee must subordinate claims against transferee, and lessor must consent to lease assignment if applicable. |
| Termination for Cause | Automatic termination for insolvency, bankruptcy, admission of inability to pay debts, receivership, levy, composition with creditors, unsatisfied final judgment for more than 30 days, or foreclosure not dismissed within 30 days. Termination upon notice for: failure to open business within required time, falsifying reports, ceasing operations for 5+ days (unless casualty), losing possession of property/vehicle, failing to restore operations within 14 days of vehicle casualty, failing to comply with laws/taxes, defaulting on leases, understating Gross Revenue 2+ times, failing to comply with insurance/indemnification, illegal transfer, failure to transfer upon death/disability, misrepresentation in application, felony conviction or crime damaging goodwill, adverse judgment for fraud/racketeering/improper trade practices, concealing revenues/false books, threat to public health/safety, refusing inspection/audit, unauthorized use of Marks/Confidential Information, failing to comply with non-competition covenants, defaulting 3+ times or 2+ times in 12 months, insufficient funds 2+ times in 12 months, default under other agreements, or failing to meet Minimum Performance Standards. |
| Non-Compete Period | During the term of the franchise agreement and for 24 months after termination or expiration. |
| Non-Compete Details | During term: cannot divert business/customers to competitors, participate in similar cleaning service business, or perform acts injurious to goodwill. Post-term (24 months): cannot divert business/customers to competitors, participate in similar cleaning service business within 25 miles of former territory or any Summit Building Services outlet, or perform acts injurious to goodwill. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | No |
| Participation Details | The franchisee must personally participate in the direct operation or designate a general manager (who may be the franchisee). The general manager must successfully complete initial management training and other required courses, and cannot have an interest in or business relationship with competitors. All owners of a business entity franchisee must personally sign the Franchise Agreement as a Principal. If married, the spouse must sign a Spousal Guaranty. |
| Required Suppliers | Franchisees must purchase all fixtures, furnishings, signs, equipment, inventory, uniforms, marketing materials, computer systems, certain software, and other supplies, products and materials from approved suppliers and contractors or in accordance with franchisor specifications. The franchisor maintains written lists of approved items and designated suppliers. Franchisees must use the bookkeeping vendor designated by the franchisor. |
| Supply Restrictions | Franchisees must use the bookkeeping vendor designated by the franchisor. Franchisees must possess a vehicle meeting franchisor specifications, which may need to be purchased or leased and outfitted. Social media platforms require written approval. |
| Franchisor Revenue from Suppliers | During the fiscal year ended December 31, 2024, neither we nor any of our affiliates earned any revenue from the sale of required purchases to our franchisees. We currently do not receive any revenue, rebates, discounts or other material consideration from any suppliers based on your required purchases of products, supplies or equipment; however, we may do so in the future, and any rebates or discounts we receive may be kept by us in our sole discretion. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | Yes |
| Description | The franchisor may offer financing for up to 75% of the Initial Franchise Fee if qualifications are met. Franchisees must sign a Promissory Note and Security Agreement. If the business is an entity, all owners and principals must personally sign. A separate Personal Guaranty is required. Conversion franchisees are not offered financing. A 10% discount on the Initial Franchise Fee is offered for lump sum payment. The interest rate is 7% over 1 year, with monthly payments of $778.74. Security is required on assets of the franchise. Default on the promissory note is a default of the franchise agreement. |
Summit Building Services Franchise Earnings — Item 19
Past financial performance does not guarantee future results. Individual results will vary.
Summit Building Services 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.
Summit Building Services System Growth
Summit Building Services currently operates 1 franchised locations and 3 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 | 2 |
| 2023 | 0 | 0 | 2 |
| 2024 | 2 | 0 | 4 |
Transfers: 0 | Closures: 0
State Registrations
Registered in 14 states: CALIFORNIA, HAWAII, ILLINOIS, INDIANA, MARYLAND, MICHIGAN, MINNESOTA, NEW YORK, NORTH DAKOTA, RHODE ISLAND, SOUTH DAKOTA, VIRGINIA, WASHINGTON, WISCONSIN
Franchisor Financials (Item 21)
Audited by Muhammad Zubairy, CPA PC for year ending December 31.
Summit Building Services Franchise — FAQ
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