FDD Talk 2015: The Signarama Franchise Opportunity (Financial Performance Analysis, Estimated Costs, and Other Important Stuff You Need to Know)

In this FDD Talk 2015 post, you’ll learn the following:

• Section I – Background information on the Signarama franchise opportunity, including relevant news updates

• Section II – Estimated initial investment for a Signarama franchise, based on Item 7 of the company’s 2015 FDD

• Section III – Presentation and analysis of Signarama’s financial performance representations, based on Item 19 of the company’s 2015 FDD, including information on the:

• 2014 average gross sales for Signarama franchise owners located in the United States who: (1) had been in business for 2 full years or more prior to January 1, 2014; (2) reported gross sales for each of the 12 months in 2014; (3) reported gross sales of $300,000 or more during 2014; and (4) advised the franchisor that they employed a full-time sales representative during 2014 who was not an owner of the business

Section I – Background Information

Signarama Maintains Domination of Signage Industry

Signarama continues to dominate the signage industry, with eight straight years as the top sign franchise on the Entrepreneur Franchise 500 list. The company uses innovative software, high-tech equipment and quality materials to create signage for a wide range of customers who want a full-service purchasing experience.

Founders Brought Printing Background

Signarama was founded in 1986 by Ray Titus and his father, Roy Titus, founder of Minuteman Press, a national printing franchise. The two were familiar with the signage industry from their work within the printing industry. They moved from a warehousing signage concept to a simple, more accessible retail concept to making sign-buying easier and more pleasant.

The first Signarama store was located in Farmingdale, New York. A second location followed within a year in North Palm Beach, Florida. The company grew exponentially from there and now has more than 850 sign centers around the world.

Wide Variety of Signage

The company provides sign and graphic services to individuals and businesses to advertise or promote goods, services, events and more. Customers can purchase yard signs, banners, traffic signs, custom decals, vehicle wraps and magnets, custom vehicle graphics, sidewalk signs, digital signs, menu boards, building signs, floor mats and more.

Signarama incorporates technological advancements into its offerings, so as new technology emerges, customers have more comprehensive choices.

No. 71 Overall on Franchise 500 List

Signarama was No. 71 overall on the Entrepreneur Franchise 500 list for 2015, up from No. 74 in 2014. The company was No. 36 on the list of 2015 Top Global Franchises and No. 73 on the list of 2015 Fastest-Growing Franchises.

Best for Vets List

Military Times named Signarama to the No. 3 spot on its Best for Vets: Franchises list for 2014-15 in September 2014. The survey incorporates 110 criteria into the analysis of each franchise’s efforts to provide opportunities for success for veterans. Military Times, which publishes news and information for service members and their families, comprises Army Times, Navy Times, Air Force Times and Marine Corps Times.

Signarama’s VetFran program helps service members returning from their deployments take advantage of franchise opportunities, including training, financial assistance and industry support. Discounts for veterans are applied depending on length of service; vets who have served for more than 20 years can gain a 50 percent discount off the franchise fee.

Partnership Brings Spike Tool to Franchisees

Signarama in June 2015 named IkeGPS as a preferred vendor within a partnership that offers franchisees Spike, a laser measurement solution. Spike can quickly measure a signage location, gathering the width, height and area of the facility from a photo on a smartphone or tablet.

“It’s an amazing tool, and I use it every day – no more climbing ladders or counting bricks,” franchisee Bryan Clayman, owner of a Signarama franchise in Walpole, Massachusetts, said in a news release.

Clayman said he no longer brings a ladder with him for surveys and estimates, because he can get all the measurements safely, quickly and efficiently from the ground and store the data within the app.

“The ROI on purchasing Spike is amazing,” he said. “In fact, it’s worth more than what I paid for it.”

Franchise Expands Into Middle East

Signarama franchisee Ghassan Barazi, who purchased the Canadian master license in 2011, signed an agreement in September 2014 to expand to 20 countries in the Middle East: Algeria, Bahrain, Egypt, Iran, Iraq, Israel, Jordan, Lebanon, Libya, Morocco, Oman, Palestinian Territory, Qatar, Saudi Arabia, South Sudan, Sudan, Syria, Turkey, United Arab Emirates and Yemen.

Section II – Estimated Costs

• Please click here for detailed estimates of Signarama franchise costs, based on Item 7 of the company’s 2015 FDD.

Section III – Financial Performance Representations (Item 19, 2015 FDD) and Analysis