System4

#20

At a Glance

Products & Services: Commercial cleaning

Number of Locations: 1,394

Total Investment: $6.16K - 37.75K

Founded: 2003

Began Franchising: 2003

About System4

Co-founders Phil Kubec and Edward Hammer started System4 based on their combined business experience. Kubec had been both a franchisee and the CEO of a large commercial cleaning franchise; he also became one of System4's first master franchisees. Hammer was involved in multiple entrepreneurial ventures prior to System4, including the startup of a vehicle rental company. System4 has a partnership with the Cleaning Management Institute that allows franchise owners to be certified as custodial technicians.

Franchise Units

Year	U.S.	Canadian	International	Company Owned
2012	1,392	0	0	2
2011	1,302	0	0	0
2010	1,190	0	0	0
2009	948	0	0	0

Where Seeking Franchisees: Franchisor is seeking new franchise units worldwide.

Startup Costs, Ongoing Fees and Financing

Total Investment: $6,156 - $37,750
Franchise Fee: $4,440 - $32,000
Ongoing Royalty Fee: 5%
Term of Franchise Agreement: 20 years, renewable

Financial Requirements

Net Worth: $3,000
Liquid Cash Available: $2,500

Operations

Franchise can be run from home. Number of employees needed to run franchised unit: 3. Absentee ownership of franchise is allowed. (80% of current franchisees are owner/operators).