Signarama Franchise Review

Written by: Patrick Findaro
Last Updated by Marina Longo: January 20, 2023
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This article is based on its 2020 FDD

Signarama produces, fabricates, installs and/or sells:

  • magnetic signs,
  • boat and vehicle lettering,
  • paper and laminated signs,
  • banners and posters,
  • show cards,
  • vinyl lettering,
  • menu boards,
  • reflective signs,
  • name plates,
  • interior/exterior signage,
  • window lettering,
  • mobile signs,
  • retail displays,
  • store fronts,
  • trade show graphics,
  • architectural and directional markings,
  • wood signs,
  • engraved signs,
  • Americans With Disabilities Act (ADA) signage, and
  • electric and neon signs.  


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Initial Franchise Fee


All franchisees purchasing a new Signarama franchise pay an initial franchise fee of $49,500. You will be required to pay a $9,500 deposit, commonly referred to as a “binder.” 


Signarama Franchise Cost

The total investment necessary to begin operation of a Signarama sign center is from $239,740 to $308,520 if equipment is purchased and from $106,513 to $175,293 if equipment is leased. These amounts include $197,530 that must be paid to the franchisor if equipment is purchased, $49,500 that must be paid to franchisor if equipment is leased, and $0 to $3,500 that must be paid to the franchisor’s affiliate. 

Additional Cost Breakdown

Below is a list of the costs that factor in the range of startup costs from $239,740 to $308,520 if equipment is purchased and from $106,513 to $175,293 if equipment is leased. 

Additional Cost Breakdown

Type of ExpeditureAmount
Initial Franchise Fee$49,500
Travel and Living expenses while at training school$210-$490
Real Estate$4,500-$7,500
Real Estate Service Charge$0-$3,500
Leasehold Improvements$0-$37,000
Equipment Package initial payments and processing fee$0-$14,803
Equipment Package$0-148,030
Security Deposit$0-$3,000
Local Grand Opening$1,500-$2,500
Additional Funds (0-6 months)$35,000-$55,000
Failure rate

Ongoing Franchise Costs and Fees

Royalty: 2-6% of Gross Revenues-

Marketing: 1% of Gross revenue per month

Payment: Royalties are due monthly

Minimum Royalty: The greater of $500 per month or 6% of your gross sales up to $600,000, 4% of your gross sales from $600,001 to $1,000,000 and 2% of your gross sales over $1,000,000.

signarama people

Signarama Income Statement and Retained Earnings

Signarama Inc. Consolitades Statement of Income and Retained Earnings For the years ended December 31,2019 December 31,2018 and December 31,2017

2019 2018 2017
Franchise Fees 2,506,043 3,677,674 3,604,384
Product 1,173,968 2,776,212 2,849,054
Commissions 7,616 92,997 57,812
Royalties 10,448,678 10,524,228 9,975,561
Other Income 118,007 216,621 336,972
Total Income 14,254,312 17,287,732 16,823,783
Cost of Goods Sold 2,197,911 3,260,058 3,216,938
Gross Profit 12,056,401 14,027,674 13,606,845
Advertising 707,193 1,015,487 1,018,530
Automobile 434,318 498,844 542,065
Bad Debt 89,344 40,703 48,097
Bank Service Charges 116,577 152,567 90,994
Computer and Software 252,721 152,742 154,285
Depreciation and Amortization 228,969 259,999 227,267
Dues and Subscriptions 83,274 58,747 47,615
Insurance 158,482 116,452 100,366
Licensing and Registrations 13,823 51,722 53,221
Office 399,448 414,736 521,540
Payroll 6,426,646 7,347,491 7,279,251
Postage 49,723 47,478 61,279
Professional Fees 403,655 796,314 529,354
Rent 116,653 103,471 112,112
Taxes 114,577 165,730 181,540
Telephone 555,222 522,456 383,246
Travel and Meals 1,298,859 1,466,991 1,547,825
Total Expenses 11,449,484 13,211,910 12,898,587
Net Income Before Other Income (Expense) 606,917 815,764 708,258
Other Income (Expense)
Interest and Dividend Income 57,306 64,289 50,022
Interest Expense (464,266) (334,979) (233,705)
Income Tax 30,000 (19,521) (25,000)
Gain (Loss) on Foreign Currency Exchange (11,910) (65,408) (58,606)
Gain (Loss) on Fixed Asset Disposal (10,556)
Realized Gain (Loss) on Investments 13,670 75,356 25,570
Total Other Income (Expense) (385,755) (280,263) (241,719)
Net Income 221,161 535,501 466,539
Retained Earnings, Beginning 5,355,667 4,935,079 4,468,540
Stockholder’s Distributions (42,094) (114,913)
Retained Earnings, Ending 5,534,734 5,355,667 4,935,079

Key Takeaways

Signarama is a profitable business for the franchisor with a net income in 2019 of $221K.

However, Signarama has seen a decrease in net income, since 2018 when net income was $535K.

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Your competitors include independent sign shops, franchisees of other sign businesses and to a lesser degree, commercial sign shops. The market for signs in the United States is mature with demand increasing for electronic signage incorporating the latest technology. 

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Signarama began in 1986 by Roy Titus and his son. Now Signarama operates a full-service retail sign center.

While this may be the business for you, make sure to also check out other businesses offered on Vetted Biz and in the industry. 

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