YESCO Franchise Costs $65K – $389K (+ 2024 Profits)

YESCO, also known as Young Electric Sign Company, is a prominent name in the signage and lighting industry. Founded in 1920 by Thomas Young, the company began its journey in Salt Lake City, Utah, where it is still headquartered today. 

Initially focused on producing electric signs, YESCO has expanded its offerings over the decades to include a range of lighting solutions, billboard advertising, and maintenance services.

YESCO started franchising in 2011, providing entrepreneurs with an opportunity to be a part of a well-established industry leader. The franchise model has helped YESCO maintain a strong presence across the United States by allowing local operators to deliver the company’s diverse services, which include designing, manufacturing, and maintaining signs and lighting. 

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 is $50,000. This fee is fully earned upon granting the franchise and is non-refundable, except under specific termination conditions.

Royalty Fee

Royalty fees are based on gross revenue, with a general rate of 6%, and a monthly minimum of $1,000. If monthly gross revenue is between $0 and $41,666, the royalty rate is 6%; if between $41,667 and $62,500, it is 4%; and if over $62,501, it is 2%.

Marketing/Advertising Fee

Marketing fees include a National Advertising Fee and a Local Advertising Fee, each not exceeding 3% of gross revenue, totaling a maximum combined limit of 3% of gross revenue.

Lease or Rent Fee

Rent costs can vary widely based on location, market conditions, and the size and state of the property, with estimates ranging from $500 to $5,000 per month. Additionally, costs for rental improvements may apply.

Renewal Fees

Renewal fees include a Successor Franchise Fee of $15,000 for each renewal term, which can total $30,000 for two successive five-year terms under the Standard Renewal Program.

Franchise pros and cons

The Pros:

• Development and support specialists: A trusted support team to guide franchisees throughout their ownership journey. Every new franchisee is assigned a regional development manager to understand the value and the dos and don’ts of operating a YESCO franchise. 
• No mandatory sign experience: Aspiring business owners don’t need sign and lighting expertise to become part of YESCO. 
• Proprietary business management software: Franchisees can rely on the company’s proprietary technology, Servizio, to manage and maintain their businesses. 
• Marketing materials: YESCOs’ mass media advertising through solid lead generation processes bring value to franchise owners.
• Financial support: The franchisor partners with third-party financial bodies to help brand owners cover the franchise fee, equipment, inventory and startup costs. 
• Home-based opportunity/mobile unit: Franchisees can manage their businesses from home or as mobile units. 
• Exclusive territories: Exclusive territory rights protect franchisees from competing against other YESCO franchises. 

The Cons:

• No absentee ownership: Franchisees must participate in day-to-day operations. 
• Not a part-time business: A YESCO franchise isn’t a part-time investment opportunity.

How to open a YESCO franchise

Opening a YESCO 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 YESCO franchise.

1: Research and Inquiry

• Understand the Business Model: Familiarize yourself with the YESCO franchise, including the services offered, market potential, and company history.
• Contact YESCO: Reach out to YESCO via their franchise inquiry form on the website or through their franchise development contact. This initial contact will help you gather more specific details about the franchise opportunity.

2: Review Franchise Disclosure Document (FDD)

• Receive and Review FDD: YESCO will provide you with their Franchise Disclosure Document. This document contains crucial information about the franchise, including fees, investment requirements, and obligations.
• Consult Professionals: It’s advisable to consult with a lawyer and an accountant who are experienced in franchise agreements to help you understand the FDD’s terms and conditions.

3: Financial Assessment

• Evaluate Financial Requirements: Assess the financial requirements outlined in the FDD. This includes initial franchise fees, ongoing royalties, and other operational costs.
• Secure Financing: If necessary, arrange financing. This could involve traditional bank loans, small business loans, or other financing options tailored for franchises.

4: Attend Discovery Day

• Visit YESCO Headquarters: Potential franchisees are usually invited to attend a Discovery Day at YESCO’s headquarters. This event allows you to meet the executive team, understand the company culture, and gain a deeper insight into the business operations.
• Evaluate Fit: Use this opportunity to determine if the franchise is a good fit for your business goals and expectations.

5: Site Selection and Approval

• Choose a Location: Select a suitable location for your franchise, keeping in mind the demographics and market needs. YESCO may provide guidelines and assistance in choosing a location.
• Approval from YESCO: The chosen location will need to be approved by YESCO to ensure it meets their standards and market strategy.

6: Training and Onboarding

• Undergo Training: Complete the training program provided by YESCO. This typically covers operations, technology, sales, and customer service to fully prepare you to run your franchise.
• Set Up Operations: With the support of YESCO, set up your business, including hiring staff, setting up the physical or office space, and preparing for opening.

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.