Sign Gypsies Franchise Provides Additional Income (2024)
The Sign Gypsies story begins in 2014 in McKinney, TX. They are a yard greeting service providing franchise. Sign Gypsies claims to now be the largest yard greeting franchise in the country, with locations in 47 states totaling 825 locations, including a growing number in Canada.
How is Sign Gypsies Franchise Positioned in the Special Service Industry?
Sign Gypsies provides a service that is unique in the industry and does not have much competition. This has definitely contributed to their extensive network.
The yard signs are an emerging segment of the greetings industry. The trend of greeting has changed from greeting people with greeting cards to putting up a great sign somewhere in the yards of the individual who is the center of celebrations. The company Sign Gypsy was initiated in 2020 and is a new entity. There are many emerging industry participants who are trying to occupy the pie of the business but all of them are in the growth segment of the product life cycle.
How Much is a Sign Gypsies Franchise?
The initial Sign Gypsies Franchise Fee is $1,000. You have to pay this upfront fee when opening a Sign Gypsies franchise.
Sign Gypsies Franchise Cost
The estimated total investment necessary to begin the operation of a Franchise ranges from $4,150 to $9,900. The following costs are part of the upfront costs included in the initial investment for a Sign Gypsies franchise. Many of these are one-time fees that are needed to launch the franchise. Review the chart below to see how much it costs to buy a Sign Gypsies franchise in 2022.
Your Estimated Initial Investment
| Expenditure | Amount | Method of Payment | When Due | To Whom Paymennt is to Be Made |
|---|---|---|---|---|
| Franchise fee | $1,000 | Lump sum | Upon signing Franchise Agreement | Us |
| Initial Inventory of Sign Pieces | $3,100 | Lump sum | Upon signing Franchise Agreement | Us |
| Site lease | $0 to $1,000 | As incurred | At landlord’s discretion | Landlord |
| Marketing | $0 to $350 | As incurred | At your discretion | Approved vendor |
| Hand tools | $0 to $250 | As incurred | Before product arrival | Supplier of your choice |
| Telephone/cell phone | $0 to $750 | As incurred | As invoiced | Supplier of your choice |
| Insurance | $50 to $750 | As arranged | Monthly/as arranged | Insurance company |
| Licensing and permits | $0 to $1,000 | As required by local government | As required by local government | State and local government |
| Uniforms | $0 – $200 | As arranged | As incurred | Third party suppliers and vendors |
| Legal/Accounting | $0 to $1,500 | As arranged | As incurred | Your chosen professionals |
| Additional funds (3 months) | $0 | Varies | Varies | Third party vendors and sevice providers |
| Total | $4,150 – $9,900 |
Owning a Sign Gypsies Franchise Requires Ongoing Fees
The only real ongoing fee is that you must purchase a minimum of $1,000 worth of items from the franchisor. They collect no royalties and require no advertisement fee.
How much do Sign Gypsies franchise owners make?
Sign Gypsies Franchise Sales: $35,000
| Initial investment (midpoint) | % Profit margin of average franchise sales | Estimated Profits | Time to recoup investment |
|---|---|---|---|
| $7,025 | 30% | $10,500 | 2.66 years |
| 40% | $14,000 | 2.50 years | |
| 50% | $17,500 | 2.40 years |
Based on the median sales provided by Sign Gypsies’ franchise locations, at an average of a 40% profit margin it will take around 2.5 years to recoup your investment. This is longer than other franchise opportunities. You may not get a 40% profit margin which would elongate getting a return on your investment.
Many factors affect the sales, costs, and expenses of your franchised store. Such as the franchised store’s size, geographic location, menu mix, and competition in the marketplace. The presence of other yard sign services; the extent of market penetration and brand awareness that Sign Gypsies stores have attained in your market. Also, the quality of management and service at your franchised store are major factors.
Is the Sign Gypsies Franchise Profit Worth the Franchise Cost?
To assign a valuation multiple for Sign Gypsies franchises, we leverage estimates from DealStats, a database of acquired private company transactions sourced from U.S. business brokers and SEC filings. We reviewed the larger franchise industry as well as selling price multiples for larger systems where more transaction data is available.
Under $1 Million Net Sales
- Estimated Selling Price = Net Sales * 0.52
$1 Million – $5 Million Net Sales
- Estimated Selling Price = Net Sales * 0.30
Over $5 Million Net Sales
- Estimated Selling Price = Net Sales * 0.49
When you go to sell a Sign Gypsies franchise based on the median multiple of .52 and net sales of $35,000, it would sell for $18,200. This is higher than the midpoint investment of $7,025. Therefore, there is potential to make a profit but substantial earnings will require opening multiple such franchises.
The more franchises you own, the more earning potential you have as private equity firms become interested in your business instead of individual owner-operators.
How many Sign Gypsies units have opened and closed?
Systemwide Outlet Summary For Years 2019 to 2021
| Outlet type | Year | Outlets at the Start of the Year | Outlets at the End of the Year | Net Change |
|---|---|---|---|---|
| Franchised | 2019 | 0 | 0 | 0 |
| 2020 | 0 | 387 | 387 | |
| 2021 | 387 | 765 | 378 | |
| Company-Owned | 2019 | 0 | 0 | 0 |
| 2020 | 0 | 0 | 0 | |
| 2021 | 0 | 1 | 1 | |
| Total Outlets | 2019 | 0 | 0 | 0 |
| 2020 | 0 | 387 | +387 | |
| 2021 | 387 | 766 | +379 |
Franchised units have increased at an average rate of 382 per year i.e. more than seven every week. This is a sign that the business is doing well and depending on the ground figures might reaffirm having multiple franchises to make a substantial profit.
Conclusion
Sign Gypsies offers a unique opportunity for prospective franchise owners to enter an industry that does not have a lot of competition. The reason for this, however, might be due to limited demand. Sign Gypsies might be a strong investment but the franchisor still have to prove their financials as it started only in 2020.
Think you are interested in owning a Sign Gypsies franchise or another franchise in the Special Services industry? Check out our listings page on the Vetted Biz website for much more information about franchise opportunities.
