Updated March 6, 2021.
Detailed Estimates of FASTSIGNS Franchise Costs Based on Item 7 (Estimated Initial Investment) of FASTSIGNS’ 2020 Franchise Disclosure Document
For a Full-Service Center
1. Initial Franchise Fee: $49,750
- You must pay an initial franchise fee of $49,750 when you sign a Franchise Agreement to obtain a single FASTSIGNS Center or for the first FASTSIGNS Center under a Development Agreement.
- The initial franchise fee for additional FASTSIGNS Centers that you agree to open under a Development Agreement is $24,875.
2. Leasehold Improvements: $15,684 to $37,919
- Leasehold improvements are net any free rent from the landlord and net any tenant improvement dollars from the landlord.
- These amounts are based on the cost of adapting the prototypical architectural and design plans to remodel and finish-out the Center and the cost of leasehold improvements. The amounts shown are based on actual costs for new FASTSIGNS Centers opened over the past 12 months that were built out with the recommended new Center footprint of 1,300 to 1,500 square feet, plus or minus 15%.
- Finish-out costs are based on leasing unfinished space that consists of walls, plumbing, concrete slab, lighting, HVAC, and electric.
- The $3,000 includes set-up (including training time) and 24 months use of the Corebridge Management System software.
3. Furniture and Fixtures: $7,874 to $8,914
- The figures shown include an estimate for office furniture, counters, file cabinets, and other fixtures included in the fixtures package.
4. Deposits: $2,410 to $6,000
- Deposits for site lease and utilities. The figure includes miscellaneous utility deposits such as telephone, electric, gas, and water.
- You will lease the Center premises, typically located in a strip-shopping center, office/business park, or free-standing building on a visible corridor.
- The premises for a FASTSIGNS Center are typically 1,300 to 1,500 square feet at approximately $15 to $35 per square foot in annual rent.
5. Telephone and Networking: $2,718 to $7,300
- The figures shown include installation of a telephone system, installing necessary network cables, networking of all computers, printers, and phone system.
6. Decor and Graphics: $1,798
- Included are the menu boards and all of the signage and graphics required for these boards.
7. Tools, Supplies, and Substrate Cutter: $5,002 to $7,657
- You will purchase various tools, cutting devices, and materials. You will purchase a substrate cutter that meets the franchisor’s specifications from the recommended supplier.
- The franchisor may request that you pay it a deposit of up to $22,500 prior to opening your Center to purchase these items and others on your behalf.
8. Production Equipment: $56,672
- The figure includes estimated costs for sign making computer systems, software, printer, and peripherals used in the FASTSIGNS System to design and output signs and graphics. This figure also includes production monitors, wireless mouse, and keyboard for paperless workflow.
9. Digital Sign Kiosk, Laser Measurement Solution, and a Chromebox with Licenses: $2,911
- FASTSIGNS has included the cost of a digital touchscreen sign kiosk, Chromebox with licenses, and a Spike Unit laser measurement solution.
10. Center Management System: $6,157
- You will use the center management system, a cloud-based software, the franchisor requires. You will purchase the hardware, printer, and other system components the franchisor specifies.
- You are required to use an on-line back-up utility to secure your graphics data. FASTSIGNS recommends Google Drive as part of G Suite. Storage for G Suite is shared between Gmail and Google Drive. The incremental cost of Unlimited Storage per G Suite account is $60 per year.
11. Signage: $400 to $4,920
- Exterior signage is coordinated by the franchisor and is purchased from the preferred vendor.
12. Initial Inventory: $2,427
- The inventory consists of sign and graphics materials such as: plastics, vinyl, magnetic materials, aluminum, media, laminates, exhibits and displays, and other materials.
13. Architectural/Engineering: $0 to $7,200
- FASTSIGNS provides you, free of charge, with an electronic copy of a space plan layout and design development construction drawings for one site, including all specifications for the build-out of the Center.
- This service includes 1 revision, for any reason, including changes in layout and revisions due to local building permit requirements.
- As provided, these plans do not include electrical, plumbing, mechanical engineering services, Title 24 or other requirements by state and municipality, and the plans are not sealed by an architect.
14. Initial Advertising: $12,500
- The Franchise Agreement requires you to spend not less than $12,500 ($8,500 for Conversion Franchise, Co-Brand Center and for the sale of an existing FASTSIGNS Center to a third party) on initial marketing and advertising for the Center in your local market.
15. Travel, Lodging, Meals, and 2 Employees’ Costs for Initial Training: $4,653 to $5,818
- Initial training consists of 3 weeks for you and 2 weeks for your employees. The amounts shown are estimated costs for your training (3 weeks) and 2 employees’ training (2 weeks).
- The franchisor incorporated the basic expenses for you or your Managing Principal to spend 5 days in a center prior to attending initial training.
- Some elements of graphic design and production are conducted in a virtual environment. FASTSIGNS reserves the right to convert the traditional classroom training of the initial training program entirely to live instructor-led virtual training.
16. Administrative Supplies: $1,725 to $1,939
- The franchisor requires you to purchase the following, typically from a designated provider: credit card processing system (initial and ongoing processing fees) and 3-month supply of office supplies (stationery, business cards, forms, and administrative sundries).
17. Business Licenses and Permits: $467 to $2,099
- These are estimates for local business licenses (typically one year in duration). These figures do not include occupancy and construction permits.
18. Insurance Deposits and Premiums (first 3 months): $450 to $1,450
- You will obtain before beginning construction and maintain throughout the term of the Franchise Agreement, comprehensive general liability with primary and excess limits of not less than $2,000,000, motor vehicle liability with primary and excess limits of not less than $1,000,000, loss of business and compensation insurance, employment practices liability insurance, and employers’ and workers’ compensation insurance.
19. Professional Fees: $0 to $5,250
- FASTSIGNS strongly recommends you hire a lawyer and an accountant to help you evaluate this opportunity, the lease for the Center, and to advise you in establishing your business generally.
- If the landlord does not bear the cost of a site survey, you will be required to obtain a site survey at your expense. This section includes the cost of a site survey.
20. Working Capital: $45,000 to $70,000
- These amounts are estimates of initial working capital costs such as rent, telephone, utilities, employee wages, benefits, workers’ compensation, advertising and promotional activities, inventory costs, Service Fee and Ad Fee payments, operational supplies, and professional fees.
- These figures are estimates and the franchisor cannot assure you that you will not have additional expenses operating the Center.
- These amounts include $27,864 in debt service (principal and interest) for the first 12 months based on financing $200,000 over 10 years at a 7 percent interest rate.
21. Total: $218,596 to $298,679