Signarama Franchise Review
Looking to invest in the signage industry? Discover the costs, fees, and growth potential of Signarama, a global leader in custom signage with over 700 locations worldwide. Explore how this franchise could be the right opportunity for you!
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Signarama was founded in 1986 by Roy and Ray Titus in Farmingdale, New York. The father-son duo envisioned a business that would revolutionize the signage and graphics industry, and they delivered. In just a year, they began franchising, creating opportunities for entrepreneurs worldwide. Over its almost 40-year history, Signarama has earned accolades such as being ranked #1 in Entrepreneur’s Franchise 500 in 2007 and its 2024 induction into the Franchise 500 Hall of Fame. Today, the brand remains a trailblazer in its field, celebrated for its innovation, global reach, and commitment to quality.
At its core, Signarama provides custom signage and graphics solutions tailored to businesses of all sizes. From illuminated signs and banners to vehicle wraps and promotional products, the company offers a comprehensive suite of services designed to enhance brand visibility. Ancillary products like digital displays and wayfinding systems round out its offerings, making Signarama a one-stop shop for businesses’ marketing needs. Its core customer base spans industries, including retail, hospitality, real estate, and healthcare, ensuring a broad market appeal.
Signarama operates on a truly global scale, with over 700 locations in more than 30 countries. This expansive network serves a diverse clientele, from local businesses to multinational corporations. With millions of customers served annually, the brand’s footprint underscores its reputation as a leading signage provider worldwide. Its presence is particularly strong in markets like the U.S., Australia, and New Zealand, where it continues to grow and innovate.
For franchisees, Signarama provides a robust support system. This includes comprehensive training programs covering everything from operations to marketing, access to proprietary technology, and ongoing mentorship from industry experts. Franchisees also benefit from the backing of United Franchise Group, a powerhouse in the franchise industry. With its blend of proven systems and continuous innovation, Signarama offers a compelling opportunity for those looking to make their mark in the business and professional services sector.
Signarama Franchise Insights
- With over 700 locations in more than 30 countries, Signarama is a dominant player in the $55 billion signage industry.
- In 2024, the franchise was inducted into Entrepreneur Magazine’s Franchise 500 Hall of Fame and named “Best Signage and Communications” franchise in the Global Franchise Awards.
- Signarama caters to a diverse clientele across industries like retail, hospitality, and healthcare, with products ranging from banners to digital displays.
- The brand broke a Guinness World Record in 2021 for the most signatures on a banner in one hour, demonstrating its innovative and community-focused approach.
- Signarama reached 750 stores worldwide in 2005, just 19 years after its founding, highlighting its rapid and sustained growth trajectory.
Signarama Franchise Key indicators
Growth YOY (%)
1%
vs industry 0%
Total U.S. Franchised Units
390
3-Year Failure Rate
10%
vs industry 13%
Sales-to-Investment ratio
2.2:1
How much does it cost to open a Signarama franchise?
Understanding the potential investment size and capital requirements is crucial when considering opening a Signarama franchise. These financial commitments, including initial franchise fees, equipment costs, and ongoing operational expenses, impact the feasibility and profitability of the venture. Thoroughly evaluating these factors ensures that potential franchisees are prepared for the financial responsibilities and can make informed decisions about their ability to sustain and grow the business, ultimately contributing to long-term success.
Min & Max Investment
Opening a Signarama franchise involves several key costs, which are outlined in Item 7 of the Franchise Disclosure Document (FDD). you can see a breakdown of the costs to open a Signarama below from the most recent Item 7 below:
| Type of Expenditure | Minimum Investment | Maximum Investment |
|---|---|---|
| Initial Franchise Fee | $49,500 | $49,500 |
| Travel and Living expenses while at training school | $105 | $245 |
| Real Estate (Rental payments vary from location to location.) | $4,500 | $7,500 |
| Real Estate Service Charge | $0 | $1,500 |
| Leasehold Improvements | $0 | $47,000 |
| Equipment Package initial payments and processing fee (if leased) | $0 (if purchased) | $30,100 (if leased) |
| Equipment Package | $0 (if leased) | $158,387 to $174,226, plus applicable tax (if purchased) |
| Insurance | $1,000 | $2,000 |
| Security Deposit/ Utility Deposits/ Licenses | $0 | $3,000 |
| Additional Funds (0-6 mos.) | $35,000 | $55,000 |
| Totals | $120,205 plus applicable tax | $339,971 plus applicable tax |
Item 7 in the Franchise Disclosure Document (FDD) is the “Estimated Initial Investment” section. It outlines the total costs a franchisee can expect to incur when starting a franchise, including the initial franchise fee, equipment, inventory, real estate, and other startup expenses. This section is crucial because it provides potential franchisees with a detailed understanding of the financial commitment required, helping them assess affordability and plan their investment strategy effectively.
Required Capital
To open a Signarama franchise or a similar one in the marketing and signage industry, you’ll need to meet specific financial requirements to ensure you can manage startup costs and initial operations effectively. Here’s what you should expect:
- Required Capital The total investment for Signarama ranges from $120,000 to $340,000, covering costs such as equipment, inventory, leasehold improvements, and marketing materials. Assuming that you will finance your franchise investment, you should plan to have 20% of the total investment amount in the form of equity (cash) for the investment.
- Liquid Assets Prospective franchisees typically need $50,000 to $100,000 in liquid assets to cover initial expenses and maintain operational liquidity. This includes cash reserves for working capital and unforeseen expenses.
- Net Worth A net worth of $200,000 to $300,000 is often required to demonstrate financial stability and ensure you have the capacity to support the business until it becomes profitable. This includes assets like savings, real estate, and investments.
How much does a Signarama franchise owner make?
Calculating the salary of a Signarama franchise owner involves analyzing gross sales to determine total revenue, assessing operational efficiency to understand profit margins, and accounting for franchisor fees and additional expenses such as rent, utilities, and payroll. Effective management of these factors can significantly impact the profitability and financial success of a Signarama franchise owner. This comprehensive financial analysis helps estimate net profits, from which the owner’s salary can be derived. A clear understanding of these factors ensures accurate salary projections and financial planning for sustainable business operations.
Signarama Revenue & Gross Sales
Signarama’s recent revenue performance showcases its strong market position and earning potential for franchisees. The median gross sales of $495,890 reflects the brand’s ability to generate consistent revenue across its locations. This figure highlights the demand for high-quality signage and marketing solutions.
Which key factors impact the average revenue performance of Signarama franchisees?
The strong performance of U.S. franchisee median gross sales for Signarama is likely driven by a combination of factors that make the brand a leader in the signage industry. Its diverse product and service offerings, ranging from custom signs to digital displays, cater to a wide array of industries, ensuring a broad customer base. The franchise benefits from a robust training and support system, enabling franchisees to effectively manage operations and deliver top-notch service. Additionally, Signarama’s established reputation and nearly four decades of experience provide franchisees with instant credibility in their markets. Strategic marketing initiatives and the backing of United Franchise Group further enhance brand visibility and drive customer demand, creating a strong foundation for franchisee success.
Signarama Franchise Operational Costs
When opening a Signarama franchise, understanding the primary ongoing operational costs is essential for effective budgeting and financial management.
- Employee Wages and Benefits Salaries for staff handling production, design, and customer service are a significant portion of operating expenses.
- Lease or Rent The cost of renting or leasing a retail or commercial space to house equipment, inventory, and customer-facing areas.
- Utilities and Maintenance Regular expenses for electricity, water, internet, and maintaining equipment and facilities.
- Supplies and Inventory Costs for raw materials like vinyl, printing media, and other signage supplies to fulfill customer orders.
These costs will vary depending on your location, scale of operations, and customer demand, so planning for them is key to your franchise’s profitability.
Signarama Franchise Fees
When investing in a Signarama franchise, it’s essential to understand the ongoing fees associated with operating under the brand. Here’s a breakdown of the key fees you’ll encounter:
- Royalty Fee Franchisees pay the greater of $500 per month or 6% of gross sales up to $1,000,000, with a reduced rate of 4% for sales exceeding $1,000,000. This fee supports corporate services like training, operational support, and ongoing development of the Signarama franchise system.
- Marketing Fund Fee You’ll contribute $800 per month or 1% of gross sales (whichever is greater) to the marketing fund, capped by the current fee structure. This ensures access to nationwide advertising campaigns and materials to enhance your local marketing efforts.
- Additional Fees Additional costs may arise for training programs, technology tools, and other services provided by Signarama.
By factoring in these fees, you can better assess the financial structure and benefits of being part of the Signarama network, setting the foundation for informed decision-making and successful operations.
Signarama Franchise Earnings
The earnings of a Signarama franchise owner can vary depending on several factors, including location, sales performance, and operational efficiency. For owner-operators, actively managing day-to-day operations can significantly enhance profitability, allowing for greater control over costs and customer satisfaction. With a focus on effective management, franchisees can unlock the full potential of their business.
Based on recent data, the median gross sales for a Signarama franchise stand at $495,890. For owner-operators, this translates to estimated earnings of $99,000, reflecting a strong operating profit margin of 20%.
How to Open a Signarama Franchise
Becoming a Signarama franchisee is an exciting journey that takes you from initial interest to opening your own business under a well-established brand. The process is designed to ensure mutual fit, equip you with the necessary tools, and set you up for success. Here’s an overview of the steps involved:
- Initial Inquiry You or your franchise specialist submits an initial inquiry basic information about your interest and background. You should also conduct thorough research on the franchise, including seeing all of the information available on the Vetted Biz franchise intelligence platform, including access to the most recent Franchise Disclosure Document (FDD).
- Discovery Process Participate in a discovery day or virtual meeting to learn more about the business model, meet the corporate team, and understand the brand’s operations and expectations.
- Application and Approval Submit your franchise application, including financial details, for evaluation. Once approved, you’ll receive confirmation and proceed to the next steps.
- Site Selection and Leasing Work with the Signarama team to identify and secure an optimal location for your store. This includes evaluating market demographics and negotiating lease terms.
- Training Program Attend the comprehensive training program at the corporate headquarters and on-site. This equips you with the skills to manage operations, use proprietary technology, and deliver top-notch customer service.
- Store Build-Out Collaborate with the corporate team to design, furnish, and equip your store. This step ensures that your business meets Signarama’s brand standards and is ready for operations.
- Marketing Launch Implement a pre-opening marketing plan with guidance from the Signarama team to generate buzz and attract your first customers.
- Grand Opening With everything in place, host your grand opening and start operations with the support of a dedicated franchise consultant and ongoing corporate assistance.
Pros & Cons
Pros
Established Brand: Nearly 40 years of experience and a global presence make Signarama a trusted and recognizable name in the signage industry.
Diverse Revenue Streams: Offers a wide range of services and products, catering to businesses of all sizes and providing multiple income opportunities.
Growing Industry: The demand for marketing and signage solutions continues to rise, creating steady opportunities for growth.
Cons
Competitive Market: The signage and marketing industry includes many players, requiring franchisees to excel in service and differentiation.
Labor-Intensive Operations: Running a Signarama franchise involves managing skilled employees and production processes, which can be demanding.
Dependence on B2B Sales: Since Signarama primarily serves other businesses, the cyclical nature of B2B spending or economic downturns could impact sales, requiring proactive customer acquisition strategies.
