For the most up-to-date financial information, check out our latest FDD Talk post analyzing Signarama’s average revenues, expenses, and/or profits.

In this FDD Talk 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 2018 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 2018 FDD

• Section IV – Number of franchised and company-owned Signarama outlets at the start of the year and the end of the year for 2015, 2016, and 2017, based on Item 20 of the company’s 2018 FDD

• Section V – Presentation and analysis of Signarama’s financial performance representations, based on Item 19 of the company’s 2018 FDD, including information on the:

• 2017 average gross sales for Signarama Centers in operation for 2 full years or more as of December 31, 2017, which properly reported their 2017 sales, segmented into 2 categories: (1) Signarama Centers that employed a full-time outside sales person who was not an owner of the business; and (2) Signarama Centers that did not employ a full-time outside sales person

• 2017 average gross sales for Signarama Centers in operation for 2 full years or more as of December 31, 2017, which properly reported their 2017 sales, segmented into 2 categories: (1) Signarama Centers that employed a full-time outside sales person for 1 full year or more who was not an owner of the business; and (2) Signarama Centers that did not employ a full-time outside sales person

• 2017 highest and lowest gross sales for Signarama Centers in operation for 2 full years or more as of December 31, 2017, which properly reported their 2017 sales, and employed a full-time outside sales person for more than 1 full year who was not an owner of the business

• 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 2017, and the criteria for inclusion in the Million Dollar Circle

Section I – Background Information

13 Things You Need to Know About the Signarama Franchise

Record Growth in 2017

1.  At the beginning of 2018, Signarama announced that the brand experienced record growth in 2017, with more than 100 new franchise agreements signed for new store locations. A.J. Titus, executive vice president of Signarama at the time of the announcement, said, “2017 was an incredible year for Signarama, and we expect 2018 to be even more impressive. While this brand has been around for over 30 years, the numbers continue to out-perform growth projections every year. Our sales team and owners truly understand the importance of good customer service. Leverage that with the growing need for custom sign products all around the world, and you have a global success model with tremendous growth potential. Additionally, in 2018 we are offering bigger broker commissions, which we expect to spur sales even more.”

2.  Roger Ewart, vice president of operations for Signarama, added, “We are making significant investments in game-changing technologies, hiring additional talent and repositioning leadership to maximize impact. As the sign industry’s original innovator, Signarama, nor its many long-term employees, fear change. We are adding resources internally and strengthening our field support for our massive network of franchisees. We are forecasting that we will reach extraordinary milestones in 2018, further enriching the lives of our remarkable franchise owners.”

3.  Signarama opened more than 40 new stores in the United States in 2017 and hundreds of additional openings (both domestically and internationally) were slated for 2018.

Third-Generation Titus Family Member Named President of Company

4.  In early April, Signarama announced the appointment of A.J. Titus to the position of company president. Titus took over the role from Jim Tatem, who had been the president of Signarama for 10 years and now serves as president of United Franchise Group (UFG), of which Signarama is affiliated. A.J. Titus is the son and grandson of Signarama’s founders Ray and Roy Titus.

5.  His father Ray Titus said, “A.J. now becomes a third-generation family president, following in the footsteps of myself and my father. He’s knowledgeable and prepared for the role. It’s part of our long-term vision to maintain a quality leadership that will be passed from generation to generation.”

6.  Although A.J. is only 26 years old, he has been working at the company for several years. He began his career by selling signs at a local Signarama and later was named sales manager at Signarama headquarters, where he worked with franchisees, the marketing fund, franchise sales, and ran multiple conventions and tradeshows for the company. A.J. was later appointed as executive vice president after he received his CFE certification, his MBA from the University of Miami, and his bachelor’s degree in International Business from Palm Beach Atlantic University.

7.  A.J. said, “It has been a lifelong dream to take the company that my grandfather and father built from scratch to a global powerhouse, onto the next level. The relationships that I have developed over the years with franchisees from across the world have helped make this a natural transition. With my fresh perspective, I intend to continue to enhance Signarama’s position as an industry leader.”

Reveals New, Interactive Showroom Design

8.  At the end of March 2018, Signarama revealed that it is taking the next step in product innovation and customer engagement with its new, interactive showroom design. With the new look and feel of each store showroom, customers can not only see photos of what their sign products will look like but can touch and feel different substrates to get a truly “hands-on” experience.

9.  A.J. Titus, president of Signarama, said, “The new showroom fosters an environment where customers can comfortably relax and discuss their specific business needs with our representatives. We truly believe that our new state-of-the-art retail showroom raises the bar and gives the Signarama brand a competitive edge. As a leader in the industry, we are making significant investments in new technologies and added resources to benefit our franchisees. The end result is similar to those of a good workout – we have strengthened our core to run harder, faster and longer.”

Company History

10.  Signarama was founded in 1986 by father and son Roy and Ray Titus in Farmingdale, New York. The Tituses are also the founders of the national printing franchise Minuteman Press, which they started about a decade earlier.

11.  After years of working in the printing industry, the Tituses recognized that there was a need for a more efficient way to purchase signage. The Signarama concept made the task of sign buying a much easier and more pleasant experience by moving signage from the industrial facilities and warehouses to a clean, easily accessible retail space.

12.  The first Signarama location was an immediate success and the Tituses started franchising the concept a year later. The second location opened in North Palm Beach, Florida and since then, Signarama has grown into a global franchise. Today, there are over 800 Signarama stores in 60 countries.

Entrepreneur’s Franchise 500

13.  Signarama ranked No. 212 on Entrepreneur’s 2019 Franchise 500 list.

Section II – Estimated Costs

• Please click here for detailed estimates of Signarama franchise costs, based on Item 7 of the company’s 2018 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 2018 FDD.

Section IV – Number of Franchised and Company-Owned Outlets

Franchised

2015

• Outlets at the Start of the Year:  677
• Outlets at the End of the Year:  673
• Net Change:  -4

2016

• Outlets at the Start of the Year:  673
• Outlets at the End of the Year:  683
• Net Change:  +10

2017

• Outlets at the Start of the Year:  683
• Outlets at the End of the Year:  702
• Net Change:  +19

Company-Owned

2015

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  0
• Net Change:  0

2016

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  0
• Net Change:  0

2017

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  0
• Net Change:  0

Section V – Financial Performance Representations (Item 19, 2018 FDD) and Analysis

Part 1 – Center Sales Study

• In this Center Sales Study, Signarama discloses the average gross sales in 2017 of Centers in operation for 2 full years or more as of December 31, 2017, which properly reported their 2017 sales, segmented into 3 categories: (1) Centers that employed a full-time outside sales person in 2017; (2) Centers that did not employ a full-time outside sales person in 2017; and (3) Centers that have employed a full-time outside sales person for more than 1 full year.

• 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.

Table 1 – Centers With Outside Sales Person and Centers Without Outside Sales Person (Among Centers in Operation for 2 Years or More)

Centers With Outside Sales Person