Stratus Building Solutions Partners with Diversified Royalty Corp (DIV)

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Deal will Accelerate Growth for Green Commercial Cleaning Company

“We are pleased to complete this transaction which will help accelerate our strategic objectives”, said Afshin Cangarlu, CEO of Stratus Building Solutions

Stratus Building Solutions, the nation's leading green commercial cleaning and janitorial services franchisor, is excited to announce its new partnership with Diversified Royalty Corp (DIV), a multi-royalty corporation engaged in the business of acquiring top-line royalties from well-managed multi-location businesses and franchisors in North America.

Stratus Building Solutions is an industry-leading franchise in green commercial cleaning that uses state-of-the-art cleaning equipment, sustainable processes, and biodegradable and non-toxic branded cleaning chemicals. With 68 Master Franchises and over 2,800 Unit Franchises across the U.S. and Canada, Stratus franchisees specialize in everything from carpet and window cleaning to hard-floor care and disinfecting.  

Stratus Building Solutions has experienced rapid growth for several years and intends for this partnership to further accelerate its international expansion and growth. The arrangement involves DIV acquiring Stratus Building Solutions’ intellectual property and licensing the same intellectual property back to Stratus Building Solutions on an exclusive basis in the United States, Canada, Australia, New Zealand, and the United Kingdom.

“We are pleased to complete this transaction which will help accelerate our strategic objectives”, said Afshin Cangarlu, CEO of Stratus Building Solutions. “The company and our leadership team are poised to continue our growth as the leading commercial green cleaning franchise company both domestically and internationally.”

This deal will not have a material impact on the day-to-day operations of Stratus Master Franchises and Unit Franchises, as Afshin Cangarlu, Foad Rekabi, and Stuart Erskine will retain ownership of the company. Current management and the board of directors will also remain the same and include Sean Morrison, the President and CEO of DIV, on an advisory basis.

Sean Morrison, President and CEO of DIV stated, “DIV has been building a diversified portfolio of royalties from high quality multi-location and franchisor businesses in Canada. DIV’s objective has included bringing its unique royalty model to the US market. In this regard, DIV has been promoting the royalty model at various International Franchise Association events in the United States, reaching out to various franchise professionals and franchisor business owners directly. DIV’s business development efforts have paid off with Stratus, its first US royalty transaction. Stratus is a perfect fit for DIV’s royalty model: a proven franchisor business with historically steady, predictable cash flows, strong master franchisee and unit franchisee economics and an opportunity to grow its master franchisee count from 64 up to 150 over the next five to 10 years. DIV’s unique royalty model allows Stratus’ owners to retain 100% equity ownership, monetize a portion of their current cash flows, and benefit from the future growth in profitability from continued strong same-store-sales growth and adding new master franchisee growth. I strongly believe the Stratus royalty transaction will be transformative for DIV – it will be a catalyst to open the very large US franchisor market to DIV’s unique royalty model.”

Over the past three years, Stratus Building Solutions has achieved annual growth rates between 20 to 35% across the United States and Canada. Its proven model of providing Stratus Brand Standards and business consulting support to Master and Unit Franchisees while staying committed to safe, efficient cleaning and janitorial practices has helped Stratus become one of the most sought-after companies.

For more information on Stratus Building Solutions, visit http://www.stratusclean.com.

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About Stratus Building Solutions 
Stratus Building Solutions is an international franchise company in the commercial cleaning industry, founded in 2006 and headquartered in Los Angeles, California. Stratus was developed to provide environmentally friendly commercial cleaning services driven by dedicated, entrepreneurial, small-business owners and regional support offices. Stratus currently has 68 Master Franchises and over 2,800 Unit Franchisees in 100 major cities across the United States and Canada. Stratus is setting new standards in the building services and maintenance franchise industry by being the first to offer green janitorial products with their proprietary Green Seal Certified line of cleaning chemicals. To learn more about franchising opportunities, visit https://www.stratusclean.com/.

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Mandy Cline
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