Stratus Building Solutions / Stratus Clean Franchise Cost, Revenue & Review 2026
Data from FDD filing
Analysis by FranchiseVerdict Research · Methodology
Stratus Building Solutions is a commercial cleaning and janitorial franchise, with an eco-friendly focus, servicing offices and facilities under recurring contracts. Franchisees manage cleaning crews and client accounts, or at the master level sell and support unit franchises in a region.
FranchiseVerdict summary · 2026
A Stratus Building Solutions / Stratus Clean franchise requires a total initial investment of $110K – $346K, including a $75K – $210K franchise fee and an ongoing 4.0% royalty[2]. Per the 2026 FDD, average unit revenue was $3.0M[2]. FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2026 FDD issuance
Overview
- Investment
- $110K – $346K
- 41st pct Cleaning & Ma…
- Avg gross sales
- $3.0M
- Incl. company outlets39th pct Cleaning & Ma…
- Royalty
- 4.0%
- 1st pct Cleaning & Ma…
- Units
- 77
- 58th pct Cleaning & Ma…
- SBA charge-off
- N/A
Quick verdict · Cleaning & Maintenance · color = vs category peers
Green = favorable by >10% vs Cleaning & Maintenance avg · 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 $110K – $346K including a $75K franchise fee, 4.0% ongoing royalty.
- RETURNSAverage unit revenue of $3.0M/year (median $2.5M) (includes company-owned outlets).
- RISKVerdict B (Above average), verdict score 50/100 (higher is better).
- GROWTHSystem growing at 41.3% CAGR over 3 years with 77 total units. Strong expansion trajectory.
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- SBS Franchising, LLC
- Ultimate parent
- Diversified Royalty Corp. (trademark owner/licensor, TSX-listed)
- Predecessor
- Stratus Franchising, LLC
- Prior franchisor entity
- CEO title
- Chief Executive Officer
- Doug Flaig
- Incorporated in
- Delaware
- HQ
- 10530 Victory Blvd., North Hollywood, CA 91606
- Auditor
- Plante & Moran, PLLC
- Audited financials
- Franchisor revenue
- $10.8M
- vs $12.0M prior year
Independent franchisee associations
- Franchise Advisory Council (FAC)
Franchisee-led councils or alliances disclosed in Item 20. Indicates operator voice.
Affiliated brands
- SBS Services Group
- Stratus Building Solutions Canada
Other brands the franchisor or its parent operates (Item 1).
Overview
About
- CEO
- Doug Flaig
- Headquarters
- CA
- Founded
- 2015
- FDD year
- 2026
- States available
- 29
Can you afford it, and what does the money buy?
Entry cost runs 27% below the typical cleaning & maintenance franchise.
Source: FDD 2026 · Items 5–7
Full Item 7 breakdown8 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $75K | $210K | |
| Real Estate, Fixtures, Leasehold Improvements, and Utility Deposits | $2K | $15K | |
| Initial Supplies and Inventory | $500 | $1K | |
| Equipment | $3K | $5K | |
| Licenses, Permits, Security Deposits, Etc. | $750 | $5K | |
| Insurance | $1K | $4K | |
| Training | $3K | $6K | |
| Additional Funds (6 months) | $25K | $100K | |
| Total initial investment | $110K | $346K |
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
- $110K – $346K
- Middle of category vs category
- Liquid capital req'd
- $25K – $100K
- Middle of category vs category
- Franchise fee
- $75K – $210K
- Bottom third — review vs category
- Royalty
- 4.0%
- Gross Revenues · typical 6–8%
- Ad fund
- 1.0%
- typical 3–5%
- Total fee load
- 5.0%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 4.0% of gross sales |
| Marketing / ad fund | 1.0% of gross sales |
| Technology fee | $700 |
| Transfer fee | $25K |
| Inventory (initial) | $500 – $1K |
| Total fee load | 5.0% of rev |
A 5.0% total fee load is unusually lean. More of each revenue dollar stays with the franchisee.
What do units actually make?
Average unit sales run 239% above the cleaning & maintenance norm.
Includes company-owned outlets
Source: FDD 2026 · Item 19
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
$426K
14.0% margin
Unlevered ROIC
147%
EBITDA / total invested capital
Payback
8 mo
cash-on-cash, unlevered
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. The target band for an attractive franchise is 30–60% ROIC. Below that and a passive index fund likely outperforms; above that and the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses. It's the top line only. Operating costs below are category estimates. Override them to match your real lease quote, labor market, and build-out budget.
Returns model · single-unit ROIC
What would one Stratus Building Solutions / Stratus Clean unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
147%
Above the 30–60% band. Verify revenue is per-unit average
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%.
Levered LBO scenario · Yale Crease Capital framing
What would 25 Stratus Building Solutions / Stratus Clean units return on equity?
Equity IRR · 5-yr
28.8%
3.54× MOIC
Year-1 DSCR
2.81×
EBITDA ÷ debt service
Equity required
$9.9M
on $21.3M purchase
Total debt
$11.4M
SBA $5.0M + senior + seller note
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: 2026 FDD
Financial Performance
Includes company-owned outlets
- Avg gross sales
- $3.0M
- Per unit, per year
- Median gross sales
- $2.5M
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- Historical Gross Revenues (average/median) by category, years-in-operation, and revenue tier
- Sample size
- 71
- vs category median 32 · large
- Range (low → high)
- $31K→$15.0M
- Cohort dispersion (min → max)
- Transparency tier
- revenue_only
- Categorical assessment of disclosure depth
- Reporting year
- 2025
- Fiscal year the figures cover
- Source filing
- FDD 2026
- Disclosed in the 2026 filing, covering 2025
- Transparency
- 4 / 10
- vs category median 4 / 10 · typical
Compared against 192 Cleaning & Maintenance brands
Revenue is 13.4x 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 $3.0M/year in gross sales. Median is $2.5M — top performers pull the average up, so a typical unit earns less. Revenue-to-investment ratio: 13.4x. Includes company-owned outlets.
Fee burden
Total ongoing fee load of 5.0% — below the Cleaning & Maintenance average of 9.7%.
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 expanding at 41.3% CAGR over 3 years across 77 units — operators are staying and new ones are joining.
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 Cleaning & Maintenance averages
How Stratus Building Solutions / Stratus Clean Compares
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 77
- Opened
- 12
- Last reporting year
- Closed
- 0
- Turnover rate
- 0.0%
- Company-owned
- 12
- Corporate units in the system
- % franchised
- 84%
- vs corporate-owned
- Net growth (3-yr)
- +41.3%
- Net unit change over 3 years
- 3-yr CAGR
- +41.3%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 12
- Closed (3yr)
- 0
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 1
- Reacquired (3yr)
- 0
- Franchisor bought back
- Continuity rate
- 101.6%
- Units that stayed open
- Ceased ops
- 1.9%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 29 states reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
29
states with franchisees (per FDD Item 12)
Fast growth in a small system. Newer franchisors expanding quickly may not yet have the support infrastructure of larger systems.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
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
Negative franchisor net worth of -$1,234,518 and a net loss of -$44,210 (financial_distress=true) despite $12.0M revenue, plus 4 litigation matters including two pending PAGA wage-misclassification actions in California (Vergara 2025, Solorio 2024 on appeal). No going-concern note or bankruptcy. Multiple stacked concerns: negative equity plus active employment litigation.
Litigation (Item 3)
3 case reference(s): 2 pending, 1 settled.
Largest disclosed settlement: $15,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Plante & Moran, 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: Yes
- Restricted to system-approved products: Yes
Score breakdown · what drove the 50 / 100 verdict
- 01MINORNegative net worth -$1,234,518; net loss -$44,210
- 02HIGH4 litigation matters incl. 2 pending PAGA wage/misclassification suits in CA
- 03MINORfinancial_distress=true
- 04MINORMitigants: $12.0M revenue, 77 units, no going-concern note, audited
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 5.0% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2026 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 15 years |
|---|---|
| Renewal term | 15 years |
| Allowed renewalsℹ | 2 |
| Territory type | Statistical Area/County/City boundaries |
| Protected territory | Yes |
| Territory population | 500,000 |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 2 years |
| Right of first refusalℹ | Yes |
| Termination notice | 30 days |
| Curable defaultsℹ | 3 |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Litigation count | 4 |
View Item 3 litigation summary
3 case reference(s): 2 pending, 1 settled.
Items 10, 11
Training & Operations
- Classroom training
- 133 hrs
- On-the-job training
- 55 hrs
- Training location
- Los Angeles, California
- Ongoing training
- Required
- Field support
- 160 hrs/yr
- On-site visits per year
- Site selection
- joint
- Franchisor financing
- Offered
- Item 10
- POS system
- Opus (ERP)
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Opus (ERP)
Item 20 · call current owners
Franchisee Contacts
1 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Stratus Building Solutions / Stratus Clean · FDD (2026) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Stratus Building Solutions / Stratus Clean franchise?
The total investment to open a Stratus Building Solutions / Stratus Clean franchise ranges from $110K – $346K, with an initial franchise fee of $75K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Stratus Building Solutions / Stratus Clean franchise owners earn?
According to Item 19 of the Stratus Building Solutions / Stratus Clean FDD, the average gross sales per unit is $3.0M. The median is $2.5M. Important context: Includes company-owned outlets. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Item 19 in the Stratus Building Solutions / Stratus Clean 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 Stratus Building Solutions / Stratus Clean FDD and qualifies whose outlets they describe.
What is Stratus Building Solutions / Stratus Clean's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Stratus Building Solutions / Stratus Clean (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 Stratus Building Solutions / Stratus Clean franchise locations are there?
As of their most recent FDD filing, Stratus Building Solutions / Stratus Clean has 77 total units in the United States, including 65 franchised units and 12 company-owned units. 12 new units were opened in the latest reporting year.
Is Stratus Building Solutions / Stratus Clean a good franchise to buy?
FranchiseVerdict rates Stratus Building Solutions / Stratus Clean as a B-grade franchise with a verdict score of 50 out of 100 (higher is better), 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.
For franchisors
Are you the franchisor?
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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.