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Signal Security Franchise Costs $57K – $273K (+ 2024 Profits)

Signal Security is a franchise-based security company founded in 2003 and headquartered in Omaha, Nebraska. The company started franchising in 2008 and specializes in offering advanced security services, including mobile patrols and tailored security strategies to protect various environments.

The franchise model emphasizes strong local engagement by its franchisees, enabling them to deliver customized and responsive security solutions. This approach utilizes cutting-edge technology and methods tailored to meet diverse and specific security needs effectively.

After joining Signal Security, franchisees will receive substantial support through extensive training programs and a well-established business model. This equips them with the necessary tools to efficiently manage their operations and leverage the company’s strong market presence.

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Initial investment

Type of ExpenditureAmount
Initial Franchisee Fee$50,000 – $200,000
Licenses$500 – $5,850
Vehicle$2,250 – $37,000
Equipment$0 – $3,000
Transportation of vehicle$300 – $1,500
Tax, Title, & License Fees$500 – $3,500
Insurance$250 – $3,000
Workers’ Compensation Insurance$150 – $800
Wages$0 – $10,000
Local Advertising$500
Additional Funds (Operating Capital—first 90 days)$3,000 – $8,000
Total Estimated Initial Investment$57,000 – $273,000

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.

Franchise fees & Royalties

Initial Franchise Fee

Before you are awarded a Signal franchise, you must sign an Agreement with an initial franchise fee. The fee is fully earned and due when the Agreement is signed and may vary from $50,000 to $200,000 based on the population of the designated territory.

Royalty Fee

You are required to pay a royalty fee of 4% of your gross revenues from the previous month. This payment is due on the 15th of each month via electronic funds transfer.

Marketing/Advertising Fee

A marketing fund contribution is included in the franchise support fee, which is 5% of gross revenues, covering support provided by the franchisor.

Transfer Fees

A transfer fee is the greater of $25,000 plus actual expenses or 20% of the sales price, due prior to the consummation of the transfer.

Renewal Fees

The renewal fee is $0.25 per capita in the territory, due 30 days prior to the end of the current term.

Management Fees

Included within the franchise support fee, which is 5% of gross revenues.

Find the most profitable franchises

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✅ Compare turnover, investment, profits and more

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How to apply

1. Research the Brand and Market

  • Investigate Signal Security’s market presence, brand reputation, and competitive standing within the security industry.
  • Assess the demand for security services in your desired franchise location to ensure market viability.

2. Review the Franchise Disclosure Document (FDD)

  • Carefully examine the Franchise Disclosure Document provided by Signal Security to understand the legal and financial obligations.
  • Consider consulting with a franchise attorney to clarify any complex terms or implications.

3. Secure Financing

  • Determine the total investment required, including franchise fees, equipment, staffing, and operational costs.
  • Explore financing options such as loans, investor funding, or personal assets to cover the initial investment and ongoing operations.

4. Choose a Suitable Location

  • Select a strategic location that aligns with market research, ensuring high visibility and accessibility to potential clients.
  • Consider factors such as local crime rates, competition, and demographic suitability for security services.

5. Complete Training Programs

  • Participate in all Signal Security training programs to understand its operational protocols, service standards, and technology use.
  • Training may include on-site instruction, online courses, and hands-on practice with security systems and customer service.

6. Obtain Necessary Licenses and Permits

  • Research and comply with local, state, and federal regulations regarding security service provision.
  • Acquire all necessary business licenses and permits to legally operate a security franchise in your chosen location.

7. Marketing and Network Building

  • Develop a marketing strategy to establish your brand presence and attract clients, utilizing both digital and traditional advertising platforms.
  • Network with local businesses and community organizations to build relationships and secure contracts.

Disclaimer

Disclaimer: This content has been made for informational and educational purposes only. We do not make any representation or warranties with respect to the accuracy, applicability, fitness, or completeness of the information presented in the article. You should not construe any such information or other material as legal, tax, investment, financial, or other professional advice. Nothing contained in this article constitutes a solicitation, recommendation, endorsement, advertisement, or offer to buy or sell any franchises, securities, or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the franchise and/or securities laws of such jurisdiction.

All content in this article is information of a general nature and does not address the detailed circumstances of any particular individual or entity. Nothing in the article constitutes professional and/or financial and/or legal advice, nor does any information in the article constitute a comprehensive or complete statement of the matters discussed or the law relating thereto. You alone assume the sole responsibility of evaluating the merits and risks associated with the use of any information or other content in this article before making any decisions based on such information or other content.

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