Security 101Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
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]. SBA 7(a) loans show a 12.5% charge-off rate across 10 loans[1]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2022 FDD issuance
Overview
- Investment
- $130K – $235K
- 38th pct Business Serv…
- Avg gross sales
- $2.9M
- 26th pct Business Serv…
- Royalty
- 4.0%
- 4th pct Business Serv…
- Units
- 49
- 31st pct Business Serv…
- SBA default
- 12.5%
- system-wide median varies by category
Quick verdict · Business Services · color = vs category peers
Green = >15% above Business Services avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Each dollar invested generates 15.9x in gross revenue, well above the typical 1.5-2.5x range.
The system grew 15% year-over-year. Fast growth means demand, but can strain support.
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).
- Verdict A (Top Quintile) with a risk score of 24/100. SBA loan charge-off rate of 12.5% across 10 loans (above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- 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
- Legal entity
- SECURITY FRANCHISORS, LLC
- Parent company
- S101 Parent, LLC
- Incorporated in
- DE
- 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
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.
- CEO
- Steve Crespo
- Headquarters
- FL
- Founded
- 2007
- FDD year
- 2022
- States available
- 28
FDD Item 7 · 2022 filing · 11 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.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$536K
18.5% margin
Unlevered ROIC
193%
EBITDA / total invested capital
Payback
6 mo
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $130K – $235K
- Better than avg vs category
- Liquid capital req'd
- $51K – $140K
- Near category avg vs category
- Franchise fee
- $60K – $60K
- Near category avg vs category
- Royalty
- 4.0%
- percentage_of_gross · 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 |
| 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.
Financial Performance
- Avg gross sales
- $2.9M
- Per unit, per year
- Median gross sales
- $1.6M
- Item 19 type
- Average and Median Gross Billings
- Sample size
- 47 units
- vs category median 32
- Range (low → high)
- $67K→$16.0M
- Cohort dispersion (min → max)
- Reporting year
- 2021
- Fiscal year the figures cover
- Transparency
- 4 / 5
- vs category median 3 / 5 · above
Compared against 360 Business Services brands
Revenue is 15.9x the investment midpoint. At typical franchise margins, this suggests a payback under 3 years.
vs Business Services averages
How Security 101 Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 49
- Opened
- 4
- Last reporting year
- Closed
- 1
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 2.0%
- Company-owned
- 10
- Corporate units in the system
- % franchised
- 80%
- vs corporate-owned
- Multi-unit owners
- 1.0%
- Net growth (yr3)
- +15.2%
- Net unit change last year
- 3-yr CAGR
- -13.3%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 1
- 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.
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
- 12.5%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 87.5%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 6
- Defaults
- 1
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Security 101's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 6 lenders with concentration factor
- Per-state charge-off rates across 9 states
- Startup risk premium and job creation velocity
- 4-year lending trend
Instant access. No subscription.
Risk analysis
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.
Litigation (Item 3)
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 24 / 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
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Territory type | MSA's, zip codes, county or municipal boundaries, or geographic or highway boundaries |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | Yes |
| 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
- 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
FDD download
SECURITY 101 · FDD (2022) PDF
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.
What is SECURITY 101's franchise failure rate?
Based on SBA 7(a) loan data, SECURITY 101 has a charge-off rate of 12.5% across 10 loans, meaning 12.5% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
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 risk score of 24 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. 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.
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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.