Bottom line
- Total investment $130K – $235K including a $60K franchise fee, 4.0% ongoing royalty.
- Average unit revenue of $2.9M/year (median $1.6M).
- Rated MODERATE with a risk score of 55/100. SBA loan default rate of 0.0% across 13 loans (below the industry average).
- System 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
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one SECURITY 101 unit return on the cash you put in?
Unlevered ROIC · per unit
193%
Above typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 SECURITY 101 units return on equity?
Equity IRR · 5-yr
25.2%
3.07× MOIC
Year-1 DSCR
3.34×
EBITDA ÷ debt service
Equity required
$18.3M
on $33.3M purchase
Total debt
$15.0M
SBA $5.0M + senior + seller note
Overview
About
Security 101 franchisees operate security systems sales, installation, and monitoring businesses serving commercial and/or residential clients. Day-to-day operations typically include client acquisition through direct sales, system design and installation coordination, customer service, and recurring monitoring revenue management. Franchisees leverage the brand's proprietary technology platform and training systems to compete in the local security services market.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
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 phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Contracting franchise system with undisclosed profitability, questionable franchisor financial health, and high entry costs that may not justify shrinking unit economics.
Score breakdown · what drove the 55 / 100 rating
- 01MEDUnit count declined 15.2% YoY (49 units down from ~58), indicating system contraction and potential franchisee struggles
- 02MEDNet income not disclosed in Item 19, preventing ROI validation and hiding profitability reality
- 03MINORHigh franchise fee ($59,500) paired with declining unit base suggests franchisees may not be achieving advertised $2.9M revenue or are exiting unprofitably
- 04HIGHGoing Concern status is False, raising questions about franchisor's financial stability and ability to support franchisees long-term
- 05MINORRoyalty structure (4-6%) on gross billings (not net) means franchisees pay on top-line regardless of profitability—concerning given no Item 19 disclosure
- 06MED10-year term is lengthy with limited data on renewal/exit strategies; no disclosure of how many of the 49 units are original vs. recently opened
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
32 numbers
One-time purchase · CSV download · Validation questions included
FDD download
SECURITY 101 · FDD (2022) PDF