CEPro:

While the franchise model for custom A/V has had trouble taking root, a relatively new franchise model for security systems targeting custom A/V companies appears to be thriving.

Shield Security Systems FDC (Franchise Development Corp.), based in Williamsville, N.Y., has awarded 23 franchises in six years. Unlike other dealer programs on the market, this business model allows the integrator to keep the monitoring fees, thus increasing the value of his business over time.

The program has a franchise fee of $35,000. Franchisees pay royalties of 5 percent of gross sales with a 1 percent national advertising fee.

Shield monitors the accounts from its central station, guides franchisees with a turnkey business model, and provides a complete marketing plan and materials, such as door hangers. Franchises have protected geographic territories and are standardized on Bosch equipment.

Shield was started 12 years ago by president Ken Jezioro, a former police officer in Buffalo who sold security systems part time. His wife Mary is the vice president.

“The trend we are seeing is more custom A/V companies are looking for an alternative revenue stream. People want a one-stop shop,” says Mary, who also creates all the marketing material for the company. Read more.

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