There are many benefits of brand licensing to security guard companies that give opportunities to new security companies to take full advantage of the marketing power of national and international brands. This is the main reason that this strategy is more powerful than the old security franchise model. With a Trademark License, licensees can purchase the rights to an established brand without sharing the profits with the franchisor. Having access to national brands, coupled with trademarked logos, gives the licensee many benefits they did not have before.
Starting a security company from scratch can be very time consuming and can cost you a lot of money. When a security guard company signs up for a trademark license program, they get immediate access to all the positive name and image building that went before it. The licensee also takes with them, the reputation of the licensor. A new security company that has a reputable logo and name implies quality, stability, and know-how.
USPA Nationwide Security = $7500 No additional fees, no on-going fees, no profit sharing (according to their website)
USPA International Security – $9,500.00 No additional fees, no on-going fees, no profit sharing (according to their website)
Security Business Franchise
There are some benefits in the security business franchise for business owners who can invest more. Franchises are more expensive and include profit sharing and ongoing fees.
Security business franchise costs:
Signal 88 Security Franchise – Investment Range is $45,000 – $100,000, Franchise Fees $50,000 (according to their website)
Arrow Security Franchise Program – Unknown pricing.
Silbar Security – Requirements are $62,900 – $92,500 Initial Investment, $20,000 Franchise Fee, 5% Royalty, $100K Net Worth, $30K Liquid Capital (according to their website).
Difference between a security business franchise and trademark license
Both of these models have their benefits, but they are similar in structure with some differences in them. In this article, we are going to discuss what makes these two approaches different from each other.
While both of them give a license to a business to utilize a protected trademark, the security business franchise model has more control over the franchisee, business processes, advertising and operations are controlled by the franchisor and for good reason – the protection of the franchise. The franchisee owes monthly or quarterly profit for royalties. Trademark licensee a license to utilize protected marks, logos or other trademarked material to further your business. Pricing is also an obvious factor when deciding whether a trademark license or a franchise is right for you.