Site Factory supports the use of private files with its hosted websites.
From the File module
page on Drupal.org, unlike public files (which can be directly
accessed and downloaded if their URLs are known), private files are
not directly accessible through the web server. Instead of accessing
private files using URLs, links require the use of Drupal path requests.
For example, a private file could be accessible at
/system/files/name-of-the-file.pdf, but in this case
/system/files/ is not an actual folder, but is instead a virtual URL
managed by Drupal.
The private files directory for newly-created websites is set to the following directory outside of the docroot directory:
If you need to use private files, having your website’s modules or content types use files from or write files to this directory will ensure that the files will be included whenever the website is duplicated or backed up.
If you store files in private files directories other than the default private files directory, those files in those directories will not be included in website backups or duplications.