Security 101 Franchise Cost, Revenue & Review 2026
- Investment
- $130K – $235K
- Disclosed sales
- $2.9M
- gross sales, not profit
- SBA charge-off
- Limited · 10 loans
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Security 101 is a commercial security integration franchise designing and installing access control, video surveillance, and alarm systems for businesses. Franchisees run local operations, managing sales, installation, and recurring monitoring and service accounts.
FranchiseVerdict summary · 2026
A SECURITY 101 franchise requires a total initial investment of $130K – $235K, including a $60K franchise fee and an ongoing 4.0% royalty[2]. Per the 2022 FDD, average unit revenue was $2.9M[2]. FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: high - issued more than two years ago
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✓ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored8 of 8 headline figures on this page cite a page of the filing.
Overview
- Investment
- $130K – $235K
- 45th pct Business Serv…
- Avg gross sales
- $2.9M
- 17th pct Business Serv…
- Royalty
- 4.0%
- 2nd pct Business Serv…
- Units
- 49
- 35th pct Business Serv…
- SBA charge-off
- N/A
Quick verdict · Business Services · color = vs category peers
Green = favorable by >10% vs Business Services median · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $130K – $235K including a $60K franchise fee, 4.0% ongoing royalty.
- RETURNSAverage unit revenue of $2.9M/year (median $1.6M).
- RISKVerdict A (Strongest tier), verdict score 76/100 (higher is better).
- GROWTHNegative: net -7 franchised outlets in the latest year (4 opened, 11 closed); 2 signed but not yet open (Item 20).
- DECLINESystem contracting at -13.3% CAGR over 3 years. Investigate whether closures are franchisor-driven (consolidation) or franchisee-driven (economics).
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Security Franchisors, LLC
- Parent company
- S101 Acquisition, Inc.
- FDD Item 1, page 8 of the 2022 FDD
- Ultimate parent
- S101 Parent, LLC (controlled by Gemspring Management, LLC)
- FDD Item 1, page 8 of the 2022 FDD
- CEO title
- Chief Executive Officer
- Steve Crespo
- Incorporated in
- Delaware
- HQ
- 1450 Centrepark Boulevard, Suite 210, West Palm Beach, Florida 33401
- Auditor
- DiSalvo & Associates, PLLC
- Audited financials
- Franchisor revenue
- $5.7M
- vs $4.8M prior year
Overview
About
- CEO
- Steve Crespo
- Headquarters
- FL
- Founded
- 2007
- FDD year
- 2022
- States available
- 28
Can you afford it, and what does the money buy?
Entry cost runs 37% above the typical business services franchise.
Source: FDD 2022 · Items 5–7
Full Item 7 breakdown11 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $60K | $60K | |
| Travel & Living Expenses while Training | $4K | $8K | |
| Rent | $2K | $5K | |
| Leasehold Improvements | $500 | $3K | |
| Furniture, Equipment & Signage | $5K | $8K | |
| Computer System | $2K | $3K | |
| Software Feenot refundable | $2K | $2K | |
| Initial Inventory | $2K | $3K | |
| Miscellaneous Opening Costs | $2K | $3K | |
| Security and Lease Deposits | $2K | $3K | |
| Additional Funds - 6 Months | $51K | $140K | |
| Total initial investment | $130K | $235K |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $130K – $235K
- Middle of category vs category
- Liquid capital req'd
- $51K – $140K
- Middle of category vs category
- Franchise fee
- $60K – $60K
- Middle of category vs category
- Royalty
- 4.0%
- Tiered by sales volume · typical 6–8%
- Ad fund
- 0.5%
- typical 3–5%
- Total fee load
- 4.5%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 4.0% of gross sales |
| Marketing / ad fund | 0.5% of gross sales |
| Technology fee | $500 |
| Training fee | $750 |
| Transfer fee | $15K |
| Renewal fee | $6K |
| Inventory (initial) | $2K – $3K |
| Total fee load | 4.5% of rev |
A 4.5% total fee load is unusually lean. More of each revenue dollar stays with the franchisee.
What do units actually make?
Average unit sales run 323% above the business services norm.
Source: FDD 2022 · Item 19
Single-unit · not modelled
Returns at a glance
An FDD discloses gross sales, not profit, and the operating costs that turn one into the other are in no filing. We publish no modelled return for SECURITY 101 until someone supplies them — yours, in the models below.
—
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
Total invested capital · disclosed
$278K
Item 7 initial investment plus working capital, as filed — the one figure here that needs no assumption.
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit, read against the 30–60% reference band · Yale SOM, Post-MBA Path Exhibit 2 (2023). Below that band a passive index fund likely outperforms; above it the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses, and it is the top line only — gross sales are not profit. No FDD discloses the operating costs that turn one into the other, so those fields start empty and nothing is modelled until you supply them from your own lease quote, labor market and build-out budget.
Returns model · single-unit ROIC
What would one SECURITY 101 unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
A 25-unit return is built on a per-unit EBITDA. Fill in the operating costs in Model A above and this model runs on that figure, or take the whole scenario to the full ROI workbench, where the portfolio and LBO models accept your own per-unit economics directly.
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2022 FDD
Financial Performance
- Avg gross sales
- $2.9M
- Per unit, per year
- Median gross sales
- $1.6M
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- Average and Median Gross Billings
- Sample size
- 47 outlets
- vs category median 37
- Range (low → high)
- $67K→$16.0MCited, not corroborated — printed on page 33 of the 2022 FDD. Nothing else in our record independently restates or re-derives it.
- Cohort dispersion (min → max)
- Reporting year
- 2021
- Fiscal year the figures cover
- Source filing
- FDD 2022
- Disclosed in the 2022 filing, covering 2021
- Transparency
- 4 / 10
- vs category median 3 / 10 · above
Compared against 296 Business Services brands
Revenue is 15.9x the investment midpoint. At typical franchise margins, this suggests a payback under 3 years.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
Average unit generates $2.9M/year in gross sales. Median is $1.6M — top performers pull the average up, so a typical unit earns less. Revenue-to-investment ratio: 15.9x.
Fee burden
Total ongoing fee load of 4.5% — below the Business Services median of 9.0%.
Disclosure
Transparency score 4/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Operator retention
System contracting at -13.3% CAGR over 3 years. Investigate whether closures are franchisor-driven consolidation or franchisee exits.
Multi-unit rate
Only 1% of franchisees own multiple units. Could indicate challenging economics or a young system where operators haven't had time to expand.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Business Services medians
How Security 101 Compares
Category median of published Business Services brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2022 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 49
- Opened
- 4
- Last reporting year
- Closed
- 11
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 22.4%
- Company-owned
- 10
- Corporate units in the system
- % franchised
- 80%
- vs corporate-owned
- Multi-unit owners
- 1.0%
- Net growth (3-yr)
- +6.5%
- Net unit change over 3 years
- 3-yr CAGR
- -13.3%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 0
- Not renewed
- 0
- Transferred
- 1
- Reacquired
- 10
- Franchisor bought back
- Signed, not yet open
- 2
- 0.04 per open outlet · Item 20 Table 5
- Projected new
- 0
- Franchisor's next-year forecast
- Transfer rate
- 2.0%
- Owners selling to other franchisees
- Ceased ops
- 2.0%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 21 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
Where the owners are · Item 20 owner list
32 current owners across 21 states.
- FL 4
- AL 3
- TX 3
- CA 2
- IL 2
- MI 2
- VA 2
- AZ 1
- CO 1
- DE 1
- GA 1
- IN 1
- +9 more states
Counts only, from the list the franchisor prints in Item 20. Names and phone numbers are for your own due diligence and are not shown here.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 10
- Loan volume
- $1.6M
- Median loan
- $150K
- 50th percentile
- Charge-off rate
- Limited · 10 loans
- Limited SBA coverage: 10 loans, rate hidden until 10 have resolved and loans reach 2% of franchised units
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- Limited · 10 loans
- 5-yr charge-off
- Limited · 10 loans
- Loans approved 2021+
- Active lenders
- 6
- Defaults
- 1
- Typical loan rate
- 7.4%
- avg rate to borrowers
- vs industry
- 12.5%
- NAICS 561621
- Jobs supported
- 56
- 3.4 per loan
- Lender concentration
- 40%
- top lender's share
Borrower mix: 88% went to startups / new businesses, 12% to established operators
Top lenders financing Security 101 franchisees
Showing 3 of 6 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Lender network · 7(a) + 504
SBA Lending Report
Full lending analysis for Security 101 from SBA 7(a) FOIA data.
- Principal loss rate
- 6.3%
- Avg SBA guarantee
- 78%
- Avg interest rate
- 7.42%
- Avg chargeoff amount
- $104K
- Lender concentration
- 40.0%
- Job velocity
- 3.4 per $100K
- NAICS benchmark
- 12.5%
- NAICS 561621
- Jobs supported
- 56
Top SBA lendersTop lender holds 40% of loans
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | United Midwest Savings Bank National Association | 4 | $590K | 0.0% |
| 2 | Stearns Bank National Association | 2 | $533K | 0.0% |
| 3 | Deerwood Bank | 1 | $200K | 0.0% |
| 4 | Manufacturers and Traders Trust Company | 1 | $50K | 0.0% |
| 5 | Banc of California | 1 | $107K | 100.0% |
| 6 | The Huntington National Bank | 1 | $166K | 0.0% |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| CACalifornia | 2 | 1 | 50.0% |
| ILIllinois | 1 | 0 | 0.0% |
| MDMaryland | 1 | 0 | 0.0% |
| MNMinnesota | 1 | 0 | 0.0% |
| MOMissouri | 1 | 0 | -- |
| NYNew York | 1 | 0 | -- |
| PAPennsylvania | 1 | 0 | 0.0% |
| TXTexas | 1 | 0 | 0.0% |
| WAWashington | 1 | 0 | 0.0% |
SBA 7(a) lending trend
Borrower profile
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
49-unit commercial security franchisor with strong financials: net worth $2.0M, net income $1.21M on $5.75M revenue, and Item 19 disclosed. The only concern is negative net unit growth of -13.3%.
Litigation (Item 3)
Subject: officers or affiliates. The franchisor is not a named party in these cases.
No litigation required to be disclosed
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · DiSalvo & Associates, PLLC
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 76 / 100 verdict
- 01MINORNet unit growth -13.3% (shrinking system)
- 02MINORStrong financials: $1.21M net income, $2.0M net worth
- 03MEDNo litigation, no bankruptcy, audited, Item 19 disclosed
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 4.5% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2022 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Territory type | Protected territory |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory sizeℹ | MSA's, zip codes, county or municipal boundaries, or geographic or highway boundaries |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 50 mi |
| Right of first refusalℹ | Yes |
| RoFR response window | 10 days |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Curable defaultsℹ | 9 |
| Mandatory arbitration | Yes |
| Arbitration location | West Palm Beach, Florida |
| Jury trial waiver | Yes |
| Governing law | Florida |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed
Items 10, 11
Training & Operations
- Classroom training
- 120 hrs
- On-the-job training
- 80 hrs
- Training location
- West Palm Beach, Florida for classroom; Orlando franchisee's location for on-the-job training
- Ongoing training
- Required
- Field support
- 80 hrs/yr
- On-site visits per year
- Time to open
- 4 mo
- From signing to launch
- Site selection
- Franchisee submits, franchisor approves; assistance via Site Selection and Build Out Manual and training
- Franchisor financing
- Not offered
- Item 10
- POS system
- 101 Ware
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: 101 Ware
Item 20 · call current owners
Franchisee Contacts
32 owners to call
Name · phone · city · state. Extracted from FDD Item 20
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a SECURITY 101 franchise?
The total investment to open a SECURITY 101 franchise ranges from $130K – $235K, with an initial franchise fee of $60K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do SECURITY 101 franchise owners earn?
According to Item 19 of the SECURITY 101 FDD, the average gross sales per unit is $2.9M. The median is $1.6M. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
Who owns SECURITY 101?
SECURITY 101 is franchised by Security Franchisors, LLC. Its parent company is S101 Acquisition, Inc.. The ultimate parent named in the FDD is S101 Parent, LLC (controlled by Gemspring Management, LLC). Source: FDD Item 1, 2022 filing.
What is Item 19 in the SECURITY 101 FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the SECURITY 101 FDD and qualifies whose outlets they describe.
What is SECURITY 101's franchise failure rate?
SBA 7(a) loan charge-off data is not available for SECURITY 101 (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many SECURITY 101 franchise locations are there?
As of their most recent FDD filing, SECURITY 101 has 49 total units in the United States, including 39 franchised units and 10 company-owned units. 4 new units were opened in the latest reporting year.
Is SECURITY 101 a good franchise to buy?
FranchiseVerdict rates SECURITY 101 as a A-grade franchise with a verdict score of 76 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.