Silbar Security Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$92,000 - $215,900
Franchise Fee
$45,000
Min Cash Required
$10,000
Total US Locations
9
Business Summary
Silbar Security operates a law enforcement-based security service business that provides uniformed security officers, vehicle patrol services, event staffing, surveillance, consulting, and other security-related services. Silbar Security serves both residential and commercial clients, using advanced technology and proprietary protection programs to offer protection against crime.
Corporate History
Silbar Franchise Group Corporation, operating as Silbar Security, was incorporated in Virginia on December 17, 2013. The company began offering franchises for its security services business on January 7, 2015. Silbar Security's predecessor, Sentry Security, Inc., was originally established in May 2008 by Brandon Dean and later transferred into an affiliate company, The Silbar Group Corporation, in January 2011. The affiliate operates a business similar to the franchised offering but has not offered franchises.
Financial Overview
Investment Range
$92,000 - $215,900
Franchise Fee (Low)
$45,000
Franchise Fee (High)
$100,000
Minimum Cash Required
$10,000
Royalty %
5%
Marketing %
1%
Equipment Costs (Low)
$21,800
Equipment Costs (High)
$68,100
Working Capital
$20,000
Audited Financials
Yes
Offers Financing
Yes
Audit Opinion
Unqualified opinion
Financial Health Notes
The FDD's Special Risks section highlights that Silbar Security's financial condition, as shown in its financial statements, raises questions about its ability to provide services and support to franchisees. Additionally, state addenda for Illinois and Maryland indicate that initial fee deferrals are required due to the franchisor's financial condition. The financial statements show that the company had a relatively low cash balance of $5,359 in 2024 and $5,621 in 2023. A significant portion of the company's assets is a loan to shareholders, amounting to $60,385 in 2024, which is payable on demand and could impact liquidity.
Financing Details
Silbar Security may offer financing for a portion of the initial franchise fee, up to a maximum of $25,000. Franchisees would be required to make a 50% down payment, with the remaining 50% financed at 0% APR over 24 months. The monthly payment for a $25,000 loan would be $1,041.66. This financing is secured by a personal guaranty from the franchisee's owners. Silbar Security does not guarantee any other notes, leases, or obligations for franchisees.
Performance Metrics
Total US Locations
9
Franchised Units
7
Corporate Units
2
Avg Square Footage
500
Franchising Since
2015
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Silbar Security has no litigation to report in Item 3 of its Franchise Disclosure Document.
Bankruptcy History
Silbar Security has no bankruptcy history to report in Item 4 of its Franchise Disclosure Document.
Agreement Terms
Initial Term
5 years
Renewal Term
5 years
Renewal Conditions
To renew their franchise agreement, Silbar Security franchisees must provide written notice at least 180 days before the agreement expires. They must be in compliance with their current Franchise Agreement, pay a renewal fee, and sign a general release of claims. Franchisees will also be required to sign Silbar Security's then-current Franchise Agreement, which may have materially different terms and conditions from their original contract.
Training & Support Program
Franchisor Assistance
Before opening, Silbar Security provides initial training at its Silbar Academy in Chesapeake, Virginia, or another designated location, covering topics like business models, technology, operations, administration, sales, and field operations. The franchisor assists with site selection and provides guidance on hiring and training employees, establishing service prices, and obtaining equipment, signs, fixtures, inventory, and supplies. Franchisees receive access to an Operations Manual for guidance. During operation, Silbar Security offers ongoing advisory support for operational issues and marketing assistance. It specifies required computer hardware and software systems. The franchisor may offer additional training or seminars for a fee. For advertising, franchisees must spend $2,750 on grand opening marketing and a minimum of $500 per month on local advertising, adhering to franchisor guidelines. Franchisees also contribute 1% of Gross Revenues to an Advertising Fund, which Silbar Security uses for online, radio, television, direct mail, billboards, print, or other advertising. The franchisor develops and maintains a corporate website with franchisee contact information and manages digital marketing efforts. Franchisees must obtain written approval for their own advertising materials and cannot have independent websites without approval.
Initial Training Hours
103
Training Location
Corporate headquarters in Chesapeake, Virginia
Ongoing Support
After opening, Silbar Security provides ongoing advisory support for operational issues and marketing assistance. The franchisor specifies required computer hardware and software systems. Silbar Security may elect to offer additional training or seminars, potentially for a fee. The franchisor administers an Advertising Fund to which franchisees contribute, and uses these funds for local, regional, or national advertising. Silbar Security also develops and maintains a corporate website that includes franchisee contact information and manages all digital marketing activities to promote the brand.
Franchise Requirements
Ideal Candidate Profile
Silbar Security seeks franchisees who, in certain states, will have several years of law enforcement and/or security experience, or are prepared to hire or partner with someone who does. Candidates must be able to pass comprehensive background checks. Franchisees are required to participate personally in the direct operation of the business or have an approved Designated General Manager who successfully completes initial training and passes a background check. All franchise owners must personally guarantee the obligations under the Franchise Agreement.
Industry Experience Required
Yes
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
commercial
Owner Participation
Hands-On
Territory Type
Limited
Staff Count
7
Territory Size Requirements
Silbar Security territories are defined as a specific geographic region using zip codes, natural, or political boundaries, as outlined in Schedule 1 of the Franchise Agreement. Each territory will normally include a population of approximately 500,000 people.
Staffing Notes
Silbar Security locations typically require a staff of approximately five security officers and two administrative employees. In some states, security officers and franchisees may need to have several years of law enforcement or security experience and undergo comprehensive background checks, or the franchisee must partner with someone who has the required experience. Franchisees are responsible for training their employees to provide professional customer service and ensuring all staff have the necessary licenses and certifications required by law. Franchisees are solely responsible for all aspects of employee management, including hiring, firing, compensation, and payroll taxes.