Franchise Database (Updated ) | FranChimp

Stratus Building Solutions of San Jose

Company Information

920 Saratoga Avenue San Jose, California 95129

[email protected]

SBS Franchising is the owner of the Stratus Marks and System described above. SBS Franchising is a Delaware limited liability company with its principal place of business at 10530 Victory Blvd., North Hollywood, CA 91606, (888) 479 7575. SBS Franchising acquired the Stratus franchise system from its predecessor, Stratus Franchising, LLC on January 30, 2015. SBS Franchising has two affiliates required to be disclosed in this Item. Stratus Building Solutions Canada, Inc. (“Stratus Canada”) is an affiliate of SBS Franchising that offers master franchise agreements to master franchisees in Canada to operate businesses selling and servicing comprehensive cleaning and maintenance service franchises, as well as the sale, leasing or distribution of related supplies and equipment for commercial cleaning services and building maintenance care.

Not Available

1 Directors with Prior Bankruptcies

3 Ongoing Lawsuits

FDD Effective Date Action

Franchise Rating

Franchimp Summary Rating

7/10

Earning Transparency

7/10

Franchise System Development

Year Units at Start of Year Units Opened Units Terminated Non-Renewals Re-Acquired by Franchisor Ceased Operations Units at End of Year

Employee Contact Database

# Name Position Email Phone

Summary of Investment Costs

Upfront Franchise Fees

Minimum: $3,600 Maximum: $69,000

Upfront franchise fees are the one-time payments required to secure rights to operate under an established brand, typically ranging from $20,000 to $100,000+ depending on brand value.

These fees grant access to proprietary business systems, training programs, intellectual property rights, and often territorial exclusivity—essentially purchasing the blueprint for a proven business model.

While separate from ongoing royalties, investors should evaluate these fees against expected returns, comparing fee-to-earnings ratios across opportunities and assessing how effectively franchisors reinvest these funds into system improvements.

Total Investment Costs

Minimum: $4,450 Maximum: $79,750

Ongoing Fees

Ongoing franchise fees, typically structured as royalties ranging from 4-8% of gross sales, represent the continuous payments franchisees make to maintain brand affiliation and support services.

These recurring fees fund the franchisor's operational assistance, marketing initiatives, technology updates, and continued brand development—creating a partnership where the franchisor's revenue grows alongside the franchisee's success. In addition to royalties, franchisees often contribute to national advertising funds (usually 1-3% of sales) and may incur technology fees, supply chain markups, or renewal fees depending on the franchise agreement.

Investors should carefully analyze these ongoing costs within their financial projections, as they directly impact profit margins and cash flow throughout the entire franchise relationship.

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