In this FDD Talk 2015 post, you’ll learn the following:
- Section I – Background information on the FASTSIGNS franchise opportunity, including relevant news updates
- Section II – Estimated initial investment for a FASTSIGNS franchise, based on Item 7 of the company’s 2015 FDD
- Section III – Presentation and analysis of FASTSIGNS’ financial performance representations, based on Item 19 of the company’s 2015 FDD, including information on the:
- 2014 average gross sales for the 479 FASTSIGNS Centers that were open and in continuous operation in the United States during the entire calendar year ending December 31, 2014; the 120 FASTSIGNS Centers in the top quartile; and the top 25 FASTSIGNS Centers in the United States
- 2014 average gross sales for the 28 FASTSIGNS Centers that opened in calendar year 2013, and 2013 average gross sales for the 18 FASTSIGNS Centers that opened in calendar year 2012
- 2014 average gross sales for FASTSIGNS franchise owners who (i) were in business for at least two years prior to January 1, 2014; (2) reported gross sales for each of the 12 months in 2014; and (3) advised FASTSIGNS that they employed a full-time outside sales representative during this period who was not one of the owners of the Center
- average total sales generated by the 29 outside sales professionals hired by FASTSIGNS franchisees in 2012 and 61 outside sales professionals hired by FASTSIGNS franchisees in 2013 that completed 12 consecutive months in the outside sales professional position, during their first 12 months in that position
- 2014 average sales, cost of goods sold, labor expenses (including owner), advertising expenses, auto expenses, facility expenses, equipment expenses, general and administrative expenses, and EBITDA for the 277 FASTSIGNS Centers included in the 2014 Financial Benchmarking Survey
Section I – Background Information
FASTSIGNS, North America’s largest producer of signs and visual communications devices, is on track to add a record 50 new franchise agreements in 2015 and plans to open another 50 each year for the next three to five years while opening 10 new markets.
The company is looking for opportunities for growth in Mexico, Southeast Asia, Central America, South America, India, and the Middle East, as these countries are experiencing high demand for FASTSIGNS’ signs, graphics, printing, promotional products and marketing services.
30 Years for FASTSIGNS
The company celebrated 30 years of operation in February 2015 at the FASTSIGNS International Inc. annual international conference at its Dallas, Texas, headquarters.
Ninety-four franchisees in six countries were recognized for having sales higher than $1 million at the conference, which drew a record-breaking 618 people.
Roots From Observation
Gary Salomon started FASTSIGNS in 1985 after visiting a computer shop in Austin, Texas, and being impressed enough with how quickly the shop produced vinyl signs to decide to open his own sign-making shop.
Salomon and partner Robert Schanbaum opened their first store in Dallas in 1985 and started selling franchises in 1986. The company had 400 stores by 2000 and now has more than 570 locations. FASTSIGNS makes banners, vehicle graphics, architectural letters, and signs for buildings, windows and yards.
FASTSIGNS President and CEO Catherine Monson was the first recipient of the International Franchise Association’s FAN of the Year Award.
The award recognized Monson for her work with franchise and small business issues through her work with the Franchise Action Network, an IFA initiative. Monson was presented with the award Feb. 18 at the IFA’s 55th annual convention.
FASTSIGNS Lands in Hall of Fame
Franchise Business Review named FASTSIGNS International Inc. one of the inaugural inductees to the FBR Hall of Fame in March 2015.
FASTSIGNS previously had been ranked No. 14 in the FBR Top 50 Franchise list, from ratings by its franchise system, which ranked it overall 4.2 out of 5. The company, ranked No. 2 in the Business Services category, was No. 10 among systems with more than 250 units.
Silver Finalist in Canada
FASTSIGNS was a Silver finalist in the 2014 Canadian Franchise Association Award of Excellence in Franchising, Traditional – Mature Franchises category. The company was also named a Franchisee Choice designee for the third straight year. The awards were presented April 7 at the CFA National Convention.
FASTSIGNS enters Dubai
The chain grew its Middle East presence in May 2015 as it opened its first Dubai location. Master Franchisee Hamdi Osman will open 12 stores in the United Arab Emirates and 25 in North Africa (specifically, Algeria, Libya, Morocco and Tunisia).
Section II – Estimated Costs
- Please click here for detailed estimates of FASTSIGNS franchise costs, based on Item 7 of the company’s 2015 FDD.