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System4

2013 Franchise 500
#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).
Financing Type In-House Third Party
Franchise Fee
Startup Costs
Equipment
Inventory
Accounts Receivable
Payroll

How This Franchise Supports Franchisees

Training: At franchisee's location: 3 days. Seminars : 1 day each.
Ongoing Support: Meetings, Toll-free phone line, Internet, Security/safety procedures, Field operations/evaluations, Purchasing cooperatives
Marketing Support: Ad slicks, Regional advertising,

Franchise Ranking History

Franchise 500®: #20 (2013), #38 (2012), #41 (2011), #58 (2010), #72 (2009),
Fastest-Growing: #26 (2013), #16 (2012), #10 (2011), #16 (2010), #18 (2009),
Low-Cost: #5 (2012), #9 (2011), #14 (2010), #18 (2009),
Top Home-Based: #2 (2013), #7 (2012), #10 (2011), #14 (2010), #16 (2009),

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