- 2023 Franchise 500 Rank
N/R Ranked #447 last year
- Initial investment
$157K - $377K
- Units as of 2021
52 48.6% over 3 years
System4 Facility Services believes it is a leader in the commercial cleaning industry and, for customers, the go-to provider for all facility services. Whether it's equipment, cleaning products, or staff training, System4 Facility Services handles all management aspects so that clients can focus their attention elsewhere.
System4 Facility Services was founded in 2003 by Phillip Kubec and Edward Hammer. Starting operations as a janitorial company, System4 Facility Services built a presence in Cleveland, Ohio.
There are over 50 System4 Facility Services locations spread throughout the United States.
Why You May Want to Start a System4 Facility Services Franchise
Systems4 Facility Services is a brand with a simple mission: "To become the #1 facility management services provider." By focusing on customers' needs, the brand may have created value for clients who subscribe to their ability to reduce operational costs and hassles.
Clients often worry about getting the right help in the facilities maintenance industry, and System4 Facility Services' history prepares them to deliver. If you have a passion for providing exceptional service and creating value for clients, System4 Facility Services may be a great place to call home. From the pre-screening of service providers to dedicated account management, System4 Facility Services strives to leave nothing to chance.
System4 Facility Services has been ranked in Entrepreneur's Franchise 500 many times since its inception. This ranking is based on an evaluation of more than 150 data points in the areas of costs and fees, size and growth, franchisee support, brand strength, and financial strength and stability.
What Might Make a System4 Facility Service Franchise a Good Choice?
A unique aspect of System4 Facility Services is that there are three options to choose from: a master franchise, local franchise, and local affiliate.
A master franchise provides franchisees with the right to own a market or markets to offer a wide range of services. Local franchises are limited to regional facilities and are available in select markets. To acquire these franchise options, you'll need to provide an initial investment.
The local affiliate option extends to owners with independent businesses that can benefit from System4 Facility Services' extensive customer base. Affiliates are free to choose your clients and may not be expected to pay any royalties. With the freedom to offer services to any facility, affiliates could have flexibility in business offerings.
How To Open a System4 Facility Services Franchise
Setting up a System4 Facility Services franchise starts by entering into a legal agreement that allows you to operate a store and use the brand name and business model. A typical franchise agreement runs for 20 years. Franchisees may be allowed to renew their agreement at the conclusion of those 20 years if they meet the System4 Facility Services requirements.
Before opening a System4 Facility Services franchise, the company usually takes franchisees through a training program. After this, you can work with them to determine operation territories, gain access to facilities, and learn more about customer involvement. Since System4 Facility Services hopes to inspire a positive client experience and gain results, these pre-franchise steps are integral.
System4 Facility Services has built a reputation as a transparent and accountable facility services provider and, for all franchisees, believes it offers the opportunity to do the right things for the right reasons.
About System4 Facility Services
|Franchising Since||2003 (20 years)|
|# of employees at HQ||17|
This company is offering new franchisees in the following US states: Alaska, Alabama, Arkansas, California, Colorado, Florida, Hawaii, Iowa, Illinois, Indiana, Kansas, Kentucky, Louisiana, Maryland, Michigan, Minnesota, Missouri, Mississippi, North Carolina, North Dakota, Nebraska, New Jersey, New Mexico, Nevada, New York, Oklahoma, Pennsylvania, South Dakota, Tennessee, Texas, Wisconsin, West Virginia, Wyoming
|# of Units||52 (as of 2021)|
Information for Franchisees
Here's what you need to know if you're interested in opening a System4 Facility Services franchise.
Financial Requirements & Ongoing Fees
Here's what you can expect to spend to start the business and what ongoing fees the franchisor charges throughout the life of the business.
Initial Franchise Fee
Definition: The initial fee paid to a franchisor to join their system
What you need to know: Found in Item 5 of the FDD, this may be a flat fee, or may vary based on territory size, experience, or other factors.The franchise fee is an up-front (one-time) cost that a new franchisee pays to the franchisor. This fee is usually due at the signing of the franchise agreement and covers the right to use the franchisor's trademarks, name, and related business systems.
|$125,000 - $300,000|
Definition: The total amount necessary to begin operation of the franchise
What you need to know: The initial investment includes the franchise fee, along with other startup expenses such as real estate, equipment, supplies, business licenses, and working capital. This is outlined in a chart in Item 7 of the FDD, showing a range of possible costs from low to high.
|$157,000 - $377,000|
Net Worth Requirement
Definition: The minimum net worth you must have in order to qualify to become a franchisee of this company
What you need to know: Net worth is the value of a person's assets minus liabilities. Assets include cash, stocks, retirement accounts, and real estate. Liabilities include items like mortgages, car payments, and credit card debt.
|$250,000 - $800,000|
Definition: The minimum liquid capital you must have available in order to qualify to become a franchisee of this company.
|$75,000 - $150,000|
Definition: A discount or other incentive offered to military veterans who buy a franchise with this company.
|$5,000 off franchise fee|
Definition: A ongoing fee paid to the franchisor on a regular basis.
What you need to know: Most franchisors require franchisees to pay an ongoing royalty fee, which is detailed in Item 6 of the FDD. This fee is typically a percentage of weekly or monthly gross sales, but may also be a flat weekly, monthly, or annual fee.
Term of Agreement
Definition: The length of time your franchise agreement will last.
What you need to know: Franchise terms are typically anywhere from 5 to 20 years in length, but are sometimes instead dependent on factors such as the term of your lease. Once your term is up, you may have the option to renew your agreement, typically for a smaller fee than the original franchise fee.
|Is franchise term renewable?||Yes|
Some franchisors offer in-house financing, while others have relationships with third-party financing sources to which they refer qualified franchisees.
|Third Party Financing||System4 Facility Services has relationships with third-party sources which offer financing to cover the following: franchise fee|
Training & Support Offered
Franchisors offer initial training programs and a variety of ongoing support options to help franchisees run their businesses.
|On-The-Job Training||40 hours|
|Classroom Training||40 hours|
Meetings & Conventions
Security & Safety Procedures
Franchisee Intranet Platform
Additional details about running this franchise.
|Is absentee ownership allowed?||Yes|
Can this franchise be run from home/mobile unit?
Definition: The business can be run from your home and/or a vehicle, and it is not necessary to have a retail facility, office space, or warehouse.
Can this franchise be run part time?
Definition: This business can be run by the owner on a part-time basis (less than 40 hours per week) and/or as a side business; it is not necessary for the business to be open/run full-time.
|# of employees required to run||3|
Are exclusive territories available?
Definition: An exclusive territory is a fixed area in which you are given the right to operate and in which no other units of the same franchise may be opened.
What you need to know: Territory size may be based on factors such as radius, population size, zip codes, and more. Details can be found in Item 12 of the FDD.
Franchise 500 Ranking History
Compare where System4 Facility Services landed on this year's Franchise 500 Ranking versus previous years.
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