How much does a Stratus Building Solutions master franchise cost?
The 2026 Franchise Disclosure Document estimates $109,550 to $345,950 to establish a new U.S. Stratus Master Franchise. That is the verified range for the regional format offered by SBS Franchising, LLC—not a published purchase price for the existing San Jose office and not the cost of an individual janitorial franchise.
The disclosed total includes a $75,000–$210,000 Initial Franchise Fee and $25,000–$100,000 of Additional Funds for the first six months. It also includes estimated office, inventory, equipment, licensing, insurance, and training costs. Source: 2026 FDD, Item 7, pp. 8–10.
Data basis: SBS Franchising, LLC, Stratus Master Franchise FDD, issued March 16, 2026. Cost analysis uses Items 5, 6, 7, 8, 10, 11, and 17, plus cost provisions in the regional agreement. The applicable format develops a regional territory and sells and supports unit-level franchises. The official U.S. franchise overview distinguishes the regional format from the janitorial format.
Checked July 20, 2026. No matching 2026 FDD copy was located on an official franchise-controlled domain, so FDD references in this article are unlinked Item and page citations.
Key cost figures
The official Master Franchise investment page currently uses rounded figures of $110,000–$350,000 for total investment and $75,000–$200,000 for the franchise fee. The March 16, 2026 document is the controlling cost disclosure for this analysis and states the more precise $109,550–$345,950 total and a $210,000 fee ceiling.
What is included in the $109,550–$345,950 range?
The official total combines the territory-based initial fee, an approved business office, opening supplies, equipment and technology setup, licenses and deposits, insurance, training travel, and a six-month operating allowance. The FDD assumes a non-union market and warns that location, territory size, local codes, labor conditions, taxes, and material availability can change the result.
| Item 7 category | Disclosed range | When due | 2026 FDD pages |
|---|---|---|---|
| Initial Franchise Fee | $75,000–$210,000 | At signing | p. 8 |
| Real Estate, Fixtures, Leasehold Improvements, and Utility Deposits | $1,500–$15,000 | As arranged | pp. 8–9 |
| Initial Supplies and Inventory | $500–$1,000 | As incurred | pp. 8–9 |
| Equipment | $2,800–$5,450 | Before opening | pp. 8–9 |
| Licenses, Permits, Security Deposits, etc. | $750–$5,000 | Before opening | pp. 8–9 |
| Insurance | $1,000–$3,500 | As incurred | pp. 8–10 |
| Training | $3,000–$6,000 | As incurred | pp. 8 and 10 |
| Additional Funds (six months) | $25,000–$100,000 | As incurred | pp. 8 and 10 |
| Total Estimated Initial Investment | $109,550–$345,950 | Official disclosed total | |
The bars use one common $345,950 scale. “External startup costs” is a derived sum of the six compatible opening categories between the territory fee and the six-month allowance.
Interpretation: territory pricing and six-month working capital create most of the spread. Derived calculation from the 2026 disclosure, pp. 8–10: $75,000 + $9,550 + $25,000 = $109,550; $210,000 + $35,950 + $100,000 = $345,950.
The investment table states an Equipment range of $2,800–$5,450. Footnote 6 separately lists approximate cleaning equipment of $1,000–$2,500, a computer of $850–$2,000 per user, and a $1,000 CRM start-up fee; assuming one user, those components total $2,850–$5,500. This article preserves the official table range and treats the $50 endpoint difference as unresolved rounding that a buyer should ask SBS to reconcile.
Does this range disclose a price for the existing San Jose region?
No. The 2026 disclosure prices a new regional territory primarily by population. The official San Jose regional page identifies an operating office serving Santa Clara and San Benito Counties. The document does not state a resale price for that regional business, and the current Master Franchise territory page does not list California among its available or hot markets as checked July 20, 2026.
The document’s Exhibit J also lists California’s state effective date as “Pending” as of issuance. The disclosed national range therefore should not be treated as proof that a new San Jose or other California territory is currently available for sale. A California buyer should verify a later effective date, exemption, or approved transfer through the California DFPI franchise resources and the current state addenda.
How the Master Franchise fee is determined
The disclosure uses a population formula rather than one nationwide flat fee. It also says population density may cause the formula to vary, so the territory description in the proposed proposed agreement remains the decisive input.
A buyer considering an existing-region transfer would face a separate negotiated purchase price that is not disclosed in Item 7. The regional agreement also requires franchisor approval, while Item 6 states a Transfer Fee equal to 10% of sale, transfer, or assignment proceeds, with a $25,000 minimum and $75,000 maximum, subject to the disclosed family-member and controlled-corporation exceptions.
When is the money paid?
The largest fixed payment is made at signing, while office, equipment, insurance, training, and working-capital payments occur as the opening develops. The FTC states that a prospective franchisee must receive the FDD at least 14 calendar days before signing a binding agreement or paying the franchisor or an affiliate; its Consumer’s Guide to Buying a Franchise explains that disclosure timing.
- At the Master Franchise Agreement signingThe $75,000–$210,000 initial fee is due in one lump sum unless SBS approves Item 10 financing. It is fully earned when paid and non-refundable. The disclosure says no other fees for goods or services are paid to SBS or its affiliates before the regional business begins operating.
- As the approved office is securedReal estate, fixtures, leasehold improvements, and utility deposits are paid as arranged. Home operation is not allowed. The FDD describes approximately 1,400–1,800 square feet of centrally located “B-Class” office space as the ideal configuration, not a fixed nationwide lease requirement.
- Before openingEquipment and licenses or permits are due before opening. Insurance must be obtained within 10 days after the earlier of signing an office lease or hiring the first employee, and in every case at least 10 days before the Opening Date.
- During pre-opening trainingSBS does not charge tuition for initial training, but the franchisee pays travel, lodging, meals, and related living costs. The Item 7 training estimate is $3,000–$6,000. The first training phase must be completed satisfactorily before opening; the official training page provides current supplemental program information.
- During the first six monthsThe $25,000–$100,000 six-month allowance is retained by the franchisee and used as incurred for supplies, utilities, local advertising, and miscellaneous operating costs. It is already included in the disclosed total and must not be added a second time.
Which fees continue after opening?
The main continuing charges are two scaled royalties and monthly technology charges. A reserved advertising-fund charge may also begin after written notice. The disclosure says fees may be collected through ACH and are generally payable to SBS, non-refundable, and uniformly imposed.
| Continuing obligation | Amount or basis | Payment timing | 2026 FDD pages |
|---|---|---|---|
| Royalty on Contract Services and Sales | 4% below $300,000; 3.5% from $300,000 to $500,000; 3% over $500,000 in gross revenues | Monthly by the 10th day of the next month | pp. 6–7 |
| Royalty on Unit Franchise Fees | 20% / 15% / 10% of Unit Franchise Fee revenue, using the same prior-month gross-revenue bands | Monthly by the 10th day of the next month | pp. 6–7 |
| Advertising and Public Relations Fund | $150 or 1% per month of gross revenues, whichever is greater | Monthly by the 10th if activated | p. 6; not currently collected |
| Technology Costs | Currently $200–$700 per month | Monthly | pp. 6–7 |
| Additional capital for new programs or procedures | $10–$300 per month when implemented | As required | p. 8 |
| Annual Conference | Conference tuition is free; travel and lodging are paid by the franchisee | Variable | p. 7 |
For the services royalty, “gross revenues” includes total receipts collected for services performed by the regional business or its local operators, without reducing the base for amounts payable to or retained by those operators. The unit-sale royalty applies to the down payment received for each unit-franchise sale, including deferred down payments and upgrades.
The sourcing disclosure makes the franchisor the only approved supplier of the Opus ERP application and requires specified business software and approved digital platforms. The technology section separately identifies QuickBooks Online at approximately $100–$500 per month and the CRM system at approximately $80 per user per month after a $1,000 start-up fee. Because the fee table describes current aggregate technology charges of approximately $200–$700 per month, the buyer should obtain a user-by-user technology quote showing which provider charges are included and which are additional.
Fees triggered by a later event or non-compliance
- Transfer Fee10% of sale, transfer, or assignment proceeds; minimum $25,000 and maximum $75,000. Due upon transfer.
- Conference non-attendance$2,500 multiplied by the number of annual conferences missed, absent extraordinary circumstances. Due upon invoice.
- In-depth consultation after 12 months$350 per day plus actual and reasonable expenses when requested. Due upon invoice.
- Late Payment FeeThe greater of 5% of the delinquent payment or the maximum late fee allowed by applicable state law.
- Late Reporting Fee$50 per day when a required report is not received by the tenth day of the month in which it is due.
- Penalty for Non-Compliance$500 per day for failure to return required materials after purported termination or non-renewal.
- Attorney Fees and CostsActual legal fees and other expenses incurred because of a breach of the regional agreement.
- Audit cost shiftSBS generally pays for an audit, but the franchisee must pay when missing records necessitate it or a report is wrong by more than 5%, along with unpaid amounts, late charges, and related corrections. FDD Exhibit D, § X.D, agreement pp. 15–16.
The 15-year regional agreement permits renewal if the stated conditions are satisfied. The agreement says a renewing owner signs the then-current form but does not pay the franchise fee then charged to new regional owners. Other renewal compliance, training, legal, and operational costs are not reduced to a single stated renewal amount. FDD Item 17, pp. 25–28; Exhibit D, § III.B.4, agreement p. 3.
How much liquidity and net worth does Stratus say a buyer needs?
The current official investment page states $125,000–$150,000 in required liquid capital and a $250,000+ net worth requirement. Those screening figures are separate from the disclosed startup range: liquid capital is accessible funding, while net worth includes assets minus liabilities and is not the same as cash available to invest.
Common scale: $0 to $250,000. The figures are different financial tests and are not additive.
Source: official Stratus Master Franchise investment page, checked July 20, 2026. These thresholds are official supplemental facts; the 2026 FDD does not state them in Item 7.
What financing does the FDD disclose?
The franchisor may, at its sole option, finance up to 20% of the initial fee. If approved, the buyer provides an 80% down payment and signs a promissory note typically amortized over three years at 12% annual interest or the maximum lawful rate, whichever is lower. The note is secured by franchise assets, entity owners must personally guarantee it, and there is no prepayment penalty. Financing applies only to that territory fee—not the office, equipment, permits, insurance, training, or Additional Funds. Approval is not guaranteed. Source: 2026 FDD, Item 10, pp. 12–13.
The official investment page also states that qualifying veterans receive a 10% discount on the Initial Franchise Fee. The 2026 document does not describe that incentive, so a veteran should obtain written confirmation of eligibility, the fee base, current availability, and whether the discount can be combined with SBS financing before relying on it.
What does the official investment range not fully resolve?
The official range is not a San Jose-specific construction or operating budget. Several material obligations remain dependent on the territory, office lease, staffing plan, technology users, and local law, while some costs are expressly excluded.
- Exact territory population and density adjustment: obtain the proposed territory map, population basis, and written Initial Franchise Fee before comparing the FDD range with available capital.
- California or San Jose availability: the current territory page does not list California. Confirm whether the inquiry concerns a new territory, an approved transfer, or a Unit Franchise from the existing regional office.
- Union-market and local-cost exposure: the FDD estimates a non-union market and warns that union labor, local codes, taxes, material availability, and labor rates may increase cost.
- Pre-opening occupancy costs: financing charges, inflation, compensation for the buyer’s time or labor, and rent or interest payable before opening are excluded from Item 7.
- Owner living expenses: living expenses are not included in the six-month operating allowance. The six-month allowance covers business operating expenses, not personal household costs.
- Technology configuration: computer cost is per user, provider charges may change, and SBS may require upgrades or replacements at the franchisee’s expense.
- Insurance specifications: the FDD requires a $50,000 Commercial Cleaning Service Bond, $2,000,000 Comprehensive General Liability coverage, and Worker’s Compensation at the greater of $1,000,000 or statutory benefits, with SBS able to raise limits or add coverage.
- Latest disclosure status: request the current disclosure, quarterly updates, state addenda, proposed Master Franchise Agreement, and a written fee schedule before signing. The California DFPI franchise resources explain state filing and registration oversight.
What capital decision matters most?
The verified 2026 cost contract for a new regional business is $109,550–$345,950, but the buyer must keep four figures separate: the $75,000–$210,000 initial fee, the full startup investment, the official website’s liquid-capital and net-worth screening figures, and the percentage or conditional fees that continue after opening. For a San Jose-specific inquiry, the unresolved issue is not the national Item 7 range; it is whether the transaction is a new territory, a unit-level franchise, or a transfer of the existing regional business, because each has a different cost contract.
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