Signarama Franchise Costs $120K – $340K (+ 2024 Profits)

Signarama, established in 1986, has grown into the largest sign franchise globally, leveraging its industry-leading position in the sign and digital printing business. With its origins in Farmingdale, New York, Signarama differentiated itself early on by setting a high standard for quality and communication.

The company is now headquartered in West Palm Beach, Florida, reflecting its expansion and success in the industry. It began its franchising journey in 1987. Signarama’s business model offers a comprehensive range of products and services that help businesses increase their visibility and brand awareness. This includes custom-made signs, banners, and digital printing services. 

The franchise distinguishes itself from the competition through a robust support system for its franchisees, including extensive training programs and ongoing technical assistance, ensuring franchise owners are well-equipped to serve their local communities effectively.

Type of Expenditure	Amount (Equipment Purchase)
Initial Franchise Fee	$49,500
Travel and Living expenses while at training school	$105 to $245
Real Estate (Rental payments vary from location to location.)	$4,500 to $7,500
Real Estate Service Charge	$0 to $1,500
Leasehold Improvements	$0 to $47,000
Equipment Package initial payments and processing fee (if leased)	$0 to $30,100
Equipment Package	$158,387 to $174,226
Insurance	$1,000 to $2,000
Security Deposit/ Utility Deposits/ Licenses	$0 to $3,000
Additional Funds (0-6 mos.)	$35,000 to $55,000
Total	$248,492 to $339,971

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 ranges from $49,500, which is due at the signing of the Franchise Agreement.

Royalty Fee

Franchisees pay a royalty which is the greater of $500 per month or 6% of gross sales up to $1,000,000, and 4% of gross sales over $1,000,000.

Marketing/Advertising Fee

The marketing fee is $800 or 1% of gross sales, whichever is greater. This fee may be subject to a maximum established by the marketing fund.

Technology Fee

Franchisees pay a monthly technology package fee of $142, which covers phone lines, networking, and security services. Additionally, there is a software, website, and service fee of $125 per month for hosting and maintenance.

Lease or Rent Fee

Lease or rent fees are variable, depending on location and market conditions. Franchisees may also pay a real estate service charge of up to $1,500 if using services provided by Franchise Real Estate.

Transfer Fees

Transfer fees are greater of: $39,500, 10% of the sale price of the business, or the current transfer fee.

Renewal Fees

To renew a franchise, a fee of $15,000 is required, along with compliance with the Franchise Agreement and updating the premises to current standards.

Franchise pros and cons

The Pros:

• Co-branding: The franchisor gives the franchisees an opportunity to co-brand with the other UFG-owned brands. This gives franchisees increased brand strength and a wider target market.
• Site selection and construction: The franchisor offers franchise site selection guidance to help them identify a viable store location. Also, it helps them with the design, lease negotiations and development of their franchises.
• Flexible franchise options: Signarama offers its franchisees flexible franchise options through a well-established franchise model. They can start a new Signarama location or convert an existing print or sign store into a Signarama center.
• Comprehensive training program: The franchisor has a detailed classroom and on-the-job training program to equip its franchisees with knowledge about the franchise concept, systems and growth strategies. It trains franchisees to start and run their stores successfully. Also, it offers them ongoing training on sales, marketing and staff management.
• Exclusive territory protection: The brand grants the franchisees the right to operate their businesses in a protected location. It does not license any other franchises or operate competing brands in the designated area.
• Marketing and advertising: The franchisor helps its franchisees create awareness of their stores and enhance public relations through turnkey marketing and advertising systems. These include social media, website development, email marketing, loyalty program apps and more.
• Third-party financing: The franchisor has relationships with third-party lenders to fund franchisees’ startup costs, franchise fees, equipment, inventory and payroll costs.

The cons:

• No absentee ownership: The franchise does not present a passive investment opportunity. The franchisees must actively take part in the operations and management of their businesses.
• Not a home-based investment: Signarama franchises cannot be operated from home or a mobile facility. Franchisees must establish an office space, warehouse or retail facility.
• Not a part-time business: The franchisor requires franchisees to have their stores open full-time for at least 40 hours per week.

How to open a Signarama franchise

Opening a Signarama 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 Signarama franchise.

1: Contact Signarama

• Initial Inquiry: Reach out to Signarama to express your interest in opening a franchise. You can do this through their website, by phone, or email.
• Information Request: Submit a request to receive more detailed information about the franchise, often involving filling out a form with your personal and financial details.

2: Due Diligence and FDD Review

• Franchise Disclosure Document (FDD): Obtain and review the FDD provided by Signarama. This document contains important legal and financial information about the franchise.
• Legal and Financial Consultation: It’s advisable to consult with legal and financial advisors to understand the obligations and requirements detailed in the FDD.

3: Discovery and Interview

• Discovery Day: Attend a Discovery Day event, either virtually or in person, where you can meet the franchisor, understand the business model, and see the operations.
• Interview: Participate in an interview process where both you and the franchisor assess suitability for partnership.

4: Application and Approval

• Formal Application: Complete a formal application to become a franchisee. This may require detailed financial and business background information.
• Approval Process: Once your application is reviewed and approved, you will move forward with the franchising agreement and other formalities.

5: Training and Support

• Initial Training: Participate in a comprehensive training program provided by Signarama that covers all aspects of running the franchise, from technical operations to customer service.
• Ongoing Support: Benefit from ongoing support which includes marketing, technical assistance, and business development strategies.

Disclaimer

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