Security101 Integrator Franchising Profile

By: Brian Karas, Published on Feb 08, 2017

Hundreds of thousands of franchisees exist but they are most commonly associated with fast food.

Does franchising make sense for security integrators?

In this note, we examine the business model of Security101, who reports 37 locations and $100+ million in revenue. The founder and CEO of Security101, Steve Crespo [link no longer available], described to IPVM what makes the franchise option attractive to their partners, what it takes to start your own Security101 franchise location and what to expect.

Plus, we examine the costs, risks and tradeoffs involved in starting your own independent integrator.

******** ** ********* ** franchisees ***** *** **** are **** ******** ********** with **** ****.

**** *********** **** ***** for ******** ***********?

** **** ****, ** examine *** ******** ***** of***********, *** ******* ** locations *** $***+ ******* in *******. *** ******* *** *** of ***********, ***** ****** [**** ** longer *********], ********* ** **** **** makes *** ********* ****** attractive ** ***** ********, what ** ***** ** start **** *** *********** franchise ******** *** **** to ******.

****, ** ******* *** costs, ***** *** ********* involved ** ******** **** own *********** **********.

[***************]

Security101 **********

*** ******* *** ************ setup ** ***** * franchise-based ********, **** *** required ********* *** ************ filings ** ** ** being ********* ** ******** 2007. *** ***** ******** did $** ** ****, and *** ************ *** grown ** ** ********* by *** *** ** 2016, **** ******** ******* in ****** ** $****.

[**** ** ****** *********]

*** ******* **** *** research **** ******** *********** showed **** *** ********** were *** ******* ******* of ****** ***** ********** businesses. **** *********, ******* with *** ******* **** of ********* ************* ** the ******** ********, *** him ** ****** **** model.

****** *** ********** ***, *** sold, * ******** *********** business, ****** *** * background ** *** ******** industry, *** *** ****** that ** ***** ***** others ** ** ********** running ********** **********.

Franchise ********

******* *** ******* * Security101 ********* ******* ** starting ** *********** ********, according ** *** ***, include:

  • ************ ****** *****
  • **-***** ******** ** ****-******/********** best *********
  • ***** ***********
  • ******* ** ******* ****** customers ** ********** ***** franchise *********
  • ********** ********** ******** ******** customized *** ******* ** integrator ********
  • ******* ** ******* ******** from *********** ** ******* elements ** ******* ** integration ********
  • ********* ********* ***** *********** locations

*********** *********** ** ******* a 3-week **-******** *******, ***** covers *********** ******, *** **** key ***** ** ******* a ********. **** ** a ***** ******* *****, as **** ** ***** franchisees **** *** ********* or *********** **********, *** have *** *** ** entire ******** *** *** not ******** **** *** that ******* (*** *******, payroll, ***.).

Ideal **********

*********** ******* ** **** a *********** ******** **** to **** "******** ***** of ********** ** *** security ********" **** "* proven ***** ****** ** success." ***** ************ *** almost ************* *****, ** Security101 *** ***** **** their ********** ********* ** not *********** **** ******** things ** ****** ***** the ********, ***** **** industry **********.

** *** ******* **** of *** *********, **** did ******** *********** **** did *** **** ******** industry **********, *** ***** these ********* ****** ** struggle ****, *** *** only *** ****** ********* were **** ******* ** people ******* ******** **********.

Costs *** ***********

*********** ******* * $**,*** up-front ********* ***, **** claim **** ** *** make ******** ** **** fee, ** ** ****** goes **** ******** *****, legal ****, *** ***** items ********** **** ******* the ***** ** *** location ** *** *******. This *** ****** ******** for ** ** * people.

** ******** ** *** franchise ***, ****** **** typically **** ** ****** another $***,*** **** *** course ** *** ***** 1-2 ***** ** ***** lease ** ****** *****, tools/trucks, ******* *********, ******* and ***** ******** *****. Security *** **** *** provide *** ********* ******** to ***********, **** ***** must ****** **** *** capital *******, ** ** able ** ******* *** sufficient ******** *****.

* ******* ** *-*% is ********* ** ***** billings **** *** ********. There ** ** ******* royalty *** *** *** first ****, *** * minimum ** $*,***-$,******. (********* on ******/********) ** *** starting ** *** **** month ** ********* ** the ******* **** ***** billings ***** **** *** meet ***** ********. *** CEO *** *** **** have ***** *** ** enforce *** ******* ******* payment, ********* **** ********* been ***** ********** ******** to **** ******* ************ within *** ***** ****.

** ******** ** *** royalty ***, *********** **** also *** * $*** monthly *** *** *** business ********** ******** **** is ******** ** ** used ** *** *********.

*********** ******** *** ***** to ******* * .*% marketing *** *********** ***, which **** *** *** currently **********, ******* ********** are ******** ** ***** 2% ** ***** ***** billings ** ***** ***********/********* for ***** ********.

** ****** ******* *** of **% ** *** initial ********* *** ** required *** **** ********** year ** ********* ** the ********.

Products *******

*** ********* ******** *** the **** ** ***********'* offerings:

  • ****
  • *******
  • ***/**** *****
  • *********/***
  • **** ******** ********

**** ******** ** ******** to ***** ***** ********, and **** ** ****** with *** ******** ************ requirements ** ******** **************. Franchises *** **** ***** additional ********, ************ ** they **** ** ***** a ******* **** ** order ** ******* **** aggressively ** ***** *******.

Pricing ** ********/********

*********** *** **** ** set ***** *** ******* for ******** *** ********, within ****** (*** *** said *** **** ** to "** **** ** pricing"). ***** ******* ***** to ** **** ******** than ******* *******, ********* to *** ***.

Limited ******** ********* ****

*** ******** ******** *** relatively *** ************* *** individuals ********** ** * franchise ********. ********, ***** ******* ** alarm **********, *** ** one ** *** **** well *****.******** *** ****** ** **** ***** ********** ******* on ***** ********. ****** ******** *******, *********** ** *********** security ******* *** **********.

***** ********** **** ******* startup ***** *** ********* fees ** ******** ** Security101.

Franchise ** *********** ********

** *** *** ******* to *** **** *** integration ********, ********* ************* under **** *** ***** would ****** ******* **** flexibility, **** ** ***** of ******** *******, *** how *** **** ***** would ** ********. *** example, *** ***** ******* out ** **** **** and ****** *** *** of ********* ******** ********* until you *********** * ****** business. ***** ***** **** be ** ******* ******* payments ***, ******* ** standard ******** ********, ***** would ** ******* ********** in ****** ********.

******* * ********* **** limits ******* **** ** comes ** ******* *** business, ***** ********* *** transfer ***** *********** ********* to *** ******, **** would ********* ** ********** from ******* ***** ******** to * ********* ********** (ex: **********, *** *** ****** multiple *********** ***********), **** *********** ***** also **** *** ****** of ******** *** ********* of *** ******** (******, to ** ****, ** the *********** ***** ******* well *****, ** ***** act ** ******* *** value).

*********** **** ********* *********** to **** ********* ********* within ***** ********** *********, and *** ******* ***** accounts **** **** **** to ** "******** ********" to ** *********** ** the **** ******** *** servicing. *********** ************ ********* have ** **** ************, and *** ********* ******* landing * ***** ******* ** a *** ** **** their ******** *** ****** into *** ***********, ***** could *** ** **** as * **********.

** ***** ** ********, individuals **** * ******** background ** ****** ***** than ***********'* ****** *********** might **** **** **** a ******* ******** ***** with *** ********* ******, or *** ****** ** fully ******* ******** ********** and ******** ** ************* to ***** **** *********.

****

Comments (4)

I would have to move out of my home area to do something like this which I'm not inclined to do. Otherwise, I would strongly consider franchising a security 101 location. I think there are lots of markets across the country untapped and the rise of the number of locations speaks to that.

I would have to move out of my home area to do something like this which I'm not inclined to do. Otherwise, I would strongly consider franchising a security 101 location.

Or start you own rival security integrator franchise business... Security201.com ;)

I am curious to see how it all works out. I do not know much about Security 101 in practice, but theoretically it is an interesting hybrid between independent and Tyco...

I think it interesting they require a dealership in Tyco products when Tyco can be seen as a competitor with their own integration business under their umbrella, even though I've heard from Tyco reps they don't like their own integrator business.

Probably a necessary evil for some contract opportunities.

I was thinking the same thing.  Is this to go after Tyco customers / RFPs?

 

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