FDD Talk: Average Annual Gross Sales and Profit and Loss for FASTSIGNS Centers

Highlights of FASTSIGNS’ Item 19 Financial Performance Representations (2011 FDD) – Part 1

• FASTSIGNS is a business that specializes in “selling, marketing, production, and installation of visual communications, including signs (both electrical and non-electrical), graphics, banners, flags, vehicle graphics, vehicle wraps, ADA signage, compliance signs, dimensional letters, dimensional signage, ready-to-apply lettering, exhibits and displays, decals and labels, exhibits, trade show and other displays, digital imaging, printing (including small format, large format, and grand format), advertising and promotional products (including wearables), electronic or digital signage, 2D barcodes, websites (both regular and mobile-optimized), logo/artwork design and illustration, product wraps and other related graphics, marketing services, and complementary products and services.”

• The total investment necessary to begin operation of a full-service FASTSIGNS Center franchised business is $169,668 to $276,419. This includes the franchise fee of $34,500.

• The total investment necessary to begin operation of a Satellite FASTSIGNS Center franchised business is $93,554 to $145,706. This includes the franchise fee of $17,500.

• The total investment necessary to begin operation of a Conversion FASTSIGNS Center franchised business is $55,106 to $167,411. This includes the franchise fee of $22,500.

Average Yearly Gross Sales for FASTSIGNS Centers (2010)

• On December 31, 2010, there were 529 FASTSIGNS Centers open and in operation, of which 77 were international. 437 Centers were open and in continuous operation in the United States during the entire calendar year ending December 31, 2010. The analysis set forth below is based solely on the average yearly gross sales for those 437 Centers for 2010.

• Based on gross sales reported by the 437 Centers, the average gross sales for such Centers for the year ended December 31, 2010 was $540,137. For purposes of this analysis, gross sales includes cash and credit sales as well as any goods or services received by the franchisee in exchange for goods and services sold at the Center. Gross sales do not include sales or use taxes.

• Of the 437 Centers included in this analysis, 167 or 38% of the Centers reported gross sales above the average, ranging from $540,350 to $4,932,193, and 270 or 62% of the Centers reported gross sales below the average, ranging from $102,462 to $539,428. These figures include “Satellite Centers,” which are typically smaller Centers, without full production capabilities.

• The Centers in the top quartile (109 Centers) had average gross sales of $978,427 in 2010.

• Overall, the Centers included in this analysis reported gross sales in the following ranges for the year: