FASTSIGNS Franchise Costs $240K – $311K (+ 2024 Profits)

FASTSIGNS International, Inc. is a prominent franchisor in the sign and visual graphics industry, headquartered in Carrollton, Texas. The company was founded in 1985 and started franchising two years later in 1987.

FASTSIGNS is recognized as a leader in a market that is estimated to be worth around $29 billion, focusing on providing high-quality visual solutions that include custom signs, graphics, banners, and safety communications among other products. 

They differentiate themselves in the competitive landscape through a comprehensive suite of services and products that cater to various business needs from digital signs to traditional signage and interactive content solutions.

Type of Expenditure	Amount
Initial franchise fee	$49,750
Leasehold improvements	$21,000 to $37,600
Furniture & Fixtures	$10,781 to $12,834
Deposits	$2,912 to $4,537
Telephone & Networking	$1,287 to $6,210
Décor and Graphics	$1,902 to $1,956
Tools, Supplies and Substrate Cutter	$10,318 to $10,429
Production Equipment	$64,880 to $67,018
Commercial Display, Laser Measurement Solution and a Chromebox with licenses	$1,539 to $1,557
Center Management System Computer	$5,175 to $5,561
Signage	$2,375 to $5,307
Initial Inventory	$2,703 to $2,750
Architectural Engineering	$0 to $4,900
Initial Advertising	$14,500 to $14,500
Travel, lodging, meals and 2 employees’ costs for initial training	$7,427 to $11,523
Administrative Supplies	$827 to $1,662
Business licenses and permits	$79 to $600
Insurance deposits and premiums (first 3 months)	$625 to $1,125
Professional Fees	$2,000 to $5,750
Total	$240,000 to $311,000

Note: The table above provides a snapshot of the main costs associated with starting the most common franchise format (as disclosed in the Item 7 of the Franchise Disclosure Document). For a complete overview of all the expenses involved with the various formats offered by the franchisor, please consult the Franchise Disclosure Document.

Initial Franchise Fee

The initial franchise fee for a new franchise is $49,750.

Royalty Fee

The continuing service and royalty fee varies. For the first year, it’s 3% of Gross Sales, then increases to 6% from the second year through the end of the franchise term.

Marketing/Advertising Fee

The advertising fee starts at 1% of Gross Sales for the first year and then increases to 2% from the second year onwards.

Technology Fee

The technology fee is $50 per month for the first 12 months, increasing to $100 per month starting from the 13th month.

Transfer Fees

A transfer fee of $17,500 plus any broker fees and other out-of-pocket costs incurred are required for transferring a franchise.

Renewal Fees

The renewal fee is 15% of the then-current initial franchise fee, payable upon signing the renewal franchise agreement.

Franchise pros and cons

The Pros:

• Site selection and construction: The franchisor provides its franchisees with site selection assistance to identify a suitable business location in terms of demographics and traffic. Also, it provides them with the designs, lease negotiations and store build-outs.
• Pre Opening training and support: The brand offers the franchisees comprehensive classroom and online training for the managing principal, graphic designers and visual communication specialists to establish and operate their stores successfully. It trains them on the grand opening, inventory control, management, sign production,marketing strategies and skills.
• Market and advertising: The brand provides its franchisees with aggressive marketing strategies to help them create awareness and improve sales. Franchisees can leverage the brand’s popularity and promotional programs, such as national media, digital ads, email marketing and local store promotional campaigns.
• Third-party financing: The franchisor offers its franchisees financing for startup costs, franchise fees and ongoing costs through third-party lenders.
• Exclusive territory protection: FASTSIGNS grants its franchisees the right to operate in an exclusive territory. Under the agreement, it does not authorize any other franchises or operate competing units in the designated location.
• Low staff and inventory: The franchise can be run with a minimal staff of 3 and has low inventory requirements, cutting down on development and operational costs.

The cons:

• Not a passive investment: The franchisor does not allow for absentee ownership. It requires franchisees to participate fully in the decision-making and management of their sign and graphic centers.
• Not a part-time business: The franchisor requires the franchisees to open full-time for at least 40 hours per week.
• Not a home-based or mobile opportunity: The franchise cannot be operated from home or a vehicle. Franchisees must have a fixed office space to operate from.

How to open a FASTSIGNS franchise

Opening a FASTSIGNS franchise involves several steps, designed to ensure you are a good fit for the franchise. Here are the main steps to follow to open a FASTSIGNS franchise.

1: Initial Inquiry and Information Gathering

• Contact FASTSIGNS to express interest in starting a franchise. This can typically be done through their website or by calling their franchise sales department.
• Receive and review preliminary information about the franchise, including investment requirements and potential returns.

2: Participate in Discovery Day

• Attend a Discovery Day event at FASTSIGNS’ headquarters or a virtual meeting. This is an opportunity to meet the franchisor team, understand the company culture, and get detailed insights into the business operations.
• Ask questions and interact with key personnel to get a thorough understanding of the business model.

3: Review the Franchise Disclosure Document (FDD)

• Obtain and carefully review the Franchise Disclosure Document provided by FASTSIGNS. This document contains critical information about the franchise, including legal obligations, fees, and historical performance of franchises.
• Consult with a franchise attorney to better understand the legalities and commitments involved in opening a FASTSIGNS franchise.

4: Secure Financing

• Determine your budget and financial requirements. FASTSIGNS may offer financing options or assistance in securing loans from third-party financial institutions.
• Finalize how you will finance the franchise, including any personal investment and loan arrangements.

5: Site Selection and Lease Negotiation

• Work with FASTSIGNS to identify a suitable location for your franchise. The company typically assists with market analysis and site selection to optimize visibility and customer traffic.
• Engage in lease negotiations for the chosen location, guided by recommendations and data provided by FASTSIGNS.

6: Training and Establishment

• Undergo the required training program provided by FASTSIGNS, which covers everything from operational management to marketing strategies.
• Complete the setup of your franchise location, including equipment installation, staffing, and preparing for the grand opening.

Disclaimer

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