Stratus Building Solutions / Stratus Clean
Bottom line
- Total investment $110K – $346K including a $75K franchise fee, 4.0% ongoing royalty.
- Average unit revenue of $3.0M/year (median $2.5M).
- Rated MODERATE with a risk score of 57/100.
- System growing at 41.3% CAGR over 3 years with 77 total units — strong expansion trajectory.
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 Stratus Building Solutions / Stratus Clean unit return on the cash you put in?
Unlevered ROIC · per unit
189%
Above typical band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Stratus Building Solutions / Stratus Clean units return on equity?
Equity IRR · 5-yr
25.1%
3.07× MOIC
Year-1 DSCR
3.35×
EBITDA ÷ debt service
Equity required
$18.4M
on $33.5M purchase
Total debt
$15.0M
SBA $5.0M + senior + seller note
Overview
About
Franchisees operate commercial cleaning and janitorial services for office buildings, medical facilities, and corporate campuses. Day-to-day operations involve managing cleaning crews, scheduling, client communication, quality control, and equipment/supply procurement. Revenue derives from recurring facility maintenance contracts billed to commercial clients.
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 · 27 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.
No SBA loan data available for this brand.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Stratus presents meaningful legal and disclosure risks centered on employee misclassification allegations and lack of financial transparency, requiring extensive validation before investment.
Score breakdown · what drove the 57 / 100 rating
- 01HIGHActive PAGA litigation in California alleging employee misclassification—core business model legal risk
- 02MEDNo Item 19 (average net income) disclosed—impossible to validate $109k-$346k investment ROI claims
- 03HIGHHistorical regulatory violations by predecessor entity regarding franchise disclosure fraud
- 04MINORRoyalty structure heavily penalizes growth (20% of initial fees for unit franchises creates perverse incentives)
- 05HIGH77 units with 22.6% YoY growth is modest for a 15-year-old system; growth rate doesn't offset litigation exposure
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
52 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Stratus Building Solutions / Stratus Clean · FDD (2026) PDF