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FDD Talk 2017: What You Need to Know About the Signarama Franchise Opportunity (Financial Performance Analysis, Costs and Fees)

by Franchise Chatter on August 17, 2017

in FDD Talk 2017: Miscellaneous Franchises, Franchise Earnings, Sign Franchises



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SIGNARAMA Photo

In this FDD Talk 2017 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 2017 FDD
  • Section III – Initial franchise fee, royalty fee, marketing fee, and other fees for a Signarama franchise, based on Items 5 and 6 of the company’s 2017 FDD
  • Section IV – Presentation and analysis of Signarama’s financial performance representations, based on Item 19 of the company’s 2017 FDD, including information on the:
  • 2016 average gross sales for Signarama Centers in operation for 3 full years or more as of December 31, 2016, which properly reported their 2016 sales, segmented into 2 categories: (1) Signarama Centers that employed a full-time outside sales person in 2016; and (2) Signarama Centers that did not employ a full-time outside sales person in 2016
  • 2016 average gross sales for the first 50% and second 50% of Signarama Centers in operation for 3 full years or more as of December 31, 2016, which properly reported their 2016 sales, and employed a full-time outside sales person in 2016
  • 2016 highest and lowest gross sales for Signarama Centers that employed a full-time outside sales person in 2016
  • number of Signarama Centers that have achieved Hall of Fame membership status within the Signarama franchise system, and the criteria for membership in the Hall of Fame
  • number of Signarama Centers included in the Million Dollar Circle in 2016, and the criteria for inclusion in the Million Dollar Circle

Section I – Background Information

10 Things You Need to Know About the Signarama Franchise

Launched Contest for Startup Businesses



1.  At the start of June, Signarama launched its Signs for Success Start Up Video Contest as a way to help budding entrepreneurs grow their business. To enter the contest, entrepreneurs had to make a video about themselves and their business and tell Signarama how its signage would help grow their business.

2.  After creating a video, contestants needed to register on Signarama’s contest website and then upload the video to either Facebook, Instagram, or Youtube with the hashtag #SignaramaSignsforSuccess between June 1 to August 1.

3.  The prize package may include window graphics, light boxes, vehicle wraps, wayfinding signs, parking signs, and wall décor.

Teamed Up with International Sign Association for Dual Expo

4.  In early May, Signarama partnered with the International Sign Association (ISA) to hold the second annual International Sign Expo and Signarama convention in Las Vegas, Nevada. Signarama’s franchisees came together for the second year in a row. The convention was entitled “Momentum Makers” as a way to keep up the momentum of record sales the company has been experiencing in recent years.

5.  According to Signarama, pairing with ISA allows its franchisees the opportunity to network, create new connections, and talk with vendors exhibiting the latest in technology and systems. In addition to the exhibitions, meetings, and keynote speakers, Signarama recognized over 100 franchisees who excelled in customer service, marketing, quality service, and sales.



Growth During Past Year and Plans for Future

6.  In early April, Printing News reported that over the past 12 months, Signarama saw a significant growth in wall décor, digital signage, and content, along with growth in store sales and niche products. The news came from A.J. Titus, United Franchise Group (Signarama’s parent company) operations manager, who also said that in 2016 Signarama saw an increase in rebranding and conversions.

7.  Looking forward, Titus says that Signarama will build on its 2016 success by “leveraging vendor partnerships for greater growth of the stores.” Also according to Titus, Signarama is interested in tapping into the healthcare market “with the offering of digital signage and content delivery, wall murals, wraps (walls, vehicles, windows, floors, etc.), wayfinding, and ADA signage.”

Company History

8.  Signarama was founded in 1986 by Ray and Roy Titus in Farmingdale, New York. Roy, who is the founder of the national printing franchise Minuteman Press, and his son Ray started Signarama because they realized there was a need for a more efficient way to purchase signage.

9.  The first store was an immediate success. Less than a year after opening the first store, franchising began and a second location opened in North Palm Beach, Florida. Today, there are more than 800 Signarama stores around the world.



Entrepreneur’s Franchise 500

10.  Signarama has appeared on Entrepreneur’s annual Franchise 500 list every year in the last decade. The company’s highest rank was No. 71 in 2015, while its lowest rank was No. 223 in 2017.

Section II – Estimated Costs

  • Please click here for detailed estimates of Signarama franchise costs, based on Item 7 of the company’s 2017 FDD.

Section III – Initial Franchise Fee, Royalty Fee, Marketing Fee, and Other Fees

  • Please click here for detailed information on Signarama’s initial franchise fee, royalty fee, marketing fee, and other fees, based on Items 5 and 6 of the company’s 2017 FDD.

Section IV – Financial Performance Representations (Item 19, 2017 FDD) and Analysis

Part 1 – Center Sales Study

  • In this Center Sales Study, Signarama discloses the average gross sales in 2016 of Centers in operation for 3 full years or more as of December 31, 2016, which properly reported their 2016 sales, segmented into 2 categories: (1) Centers that employed a full-time outside sales person in 2016; and (2) Centers that did not employ a full-time outside sales person in 2016.
  • It has been Signarama’s experience that having a full-time outside sales person is an essential part of a successful marketing program and the Signarama system format. Signarama has always recommended that its franchisees employ a full-time outside sales person. It requires new franchisees to hire an outside sales person prior to commencing their Signarama business.

Centers With Outside Sales Person



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