What are the Startup Costs for a Securis Franchise?
How much money do I need to start a Securis IT asset destruction franchise?
Securis franchise owners benefit from a tight partnership with the corporate team, which handles all of the electronics waste processing on behalf of franchisees, sells the old electronics with an eye toward capturing the best price, and then splits those proceeds with franchisees 50-50. This partnership not only produces a major source of revenue for franchisees, it also eliminates the single biggest challenge you would otherwise face while starting an IT asset destruction business: What do I do with all of the stuff I collect?
By taking care of it for you, Securis is able to significantly reduce the overhead that you need to get started. The total cost to start a Securis franchise ranges from $96,100 to $310,950. If you’re wondering why the range is so large, it’s simple: The two biggest pieces of equipment you’ll need for your business are a truck and a hard drive shredder — and you can either buy or lease either one. The low end of our startup cost estimate calculates the costs you’ll incur if you lease both pieces of equipment. The high-end estimate assumes you buy them both. The high-end estimate also assumes that you purchase rights to the largest territory we offer. Our territories are determined by the number of employees who work in a given area according to data from the Bureau of Labor Statistics, which is a reliable measure of how much IT equipment needs to be recycled (since nearly every business now relies on IT). Territory fees are $35,000 for areas with 449,999 or fewer employees, $60,000 for areas with 500,000 to 699,999 employees, and $85,000 for areas with 700,000 or more employees.
Here’s a line-by-line breakdown of estimated startup costs for a Securis franchise:
|Type of Expenditure||Low-High||Method of Payment||When Due||To Whom Payment is to be Made|
|Estimated Total Initial Fee||$96,100 to $310,950|
|Initial Franchise Fee||$40,000 to $90,000||Lump Sum||On signing Franchise Agreement||Us|
|Lease, utility and security Deposits||$300 to $1,000||Lump Sum or as arranged||As arranged||Landlord|
|Leasehold Improvements||$ 0 to $5,000||As arranged||As arranged||Approved Suppliers|
|Operating Equipment||$4,400 to $6,000||As arranged||As incurred||Approved Suppliers|
|Business Software||$1,100 to $1,200||As arranged||As incurred||Approved Suppliers|
|Office Equipment, Computers, Scanner, Office Supplies and Furniture||$2,500 to $3,500||As arranged||As incurred||Us and Approved Suppliers|
|Truck and Body Installation, Wrap, and PTO||$1,600 to $90,000||As incurred||As incurred monthly||Approved Suppliers|
|Vehicle Signage||$1,250 to $1,750||As arranged||As incurred||Approved Suppliers|
|Vehicle Insurance||$1,000 to $1,500||As required||As incurred||Insurance Company|
|Shredder and Other equipment||$6,000 to $55,000||As arranged||As arranged||Approved Suppliers|
|Business licenses and permits||$250 to $1,000||As arranged||As arranged||Government Agencies|
|Professional Fees||$500 to $1,000||As arranged||As arranged||Approved Suppliers|
|Business Insurance||$1,200 to $2,500||As arranged||As arranged||Insurance Company|
|Initial Training Expenses||$1,000 to $1,500||As incurred||As incurred||Airlines, Hotels, Restaurants|
|Lead Generation Kick- Off Marketing||$10,000||As arranged||As arranged||Us|
|Additional Funds Working Capital (3 months)||$25,000 to $40,000|
So far, most Securis franchisees have been deciding to finance the truck and purchase the shredder, which has resulted in a typical startup cost of about $150,000. That does not mean that you need to have $150,000 to get started. If you have liquid assets of $100,000, a net worth of $500,000 and a good credit rating, you may qualify to open a Securis franchise.
Have questions? Fill out the form at right to download our free franchise report and start a conversation. We look forward to meeting you!