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 2020 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 2020 FDD

• Section IV – Number of franchised and company-owned Signarama outlets at the start of the year and the end of the year for 2017, 2018, and 2019, based on Item 20 of the company’s 2020 FDD

• Section V – Presentation and analysis of Signarama’s financial performance representations, based on Item 19 of the company’s 2020 FDD, including information on the:

• 2019 average and median gross sales for Signarama Centers in the United States in operation for 2 full years or more as of December 31, 2019, which properly reported their sales for each of the 12 months in 2019, segmented into 2 categories: (1) Centers that employed a full-time outside sales person in 2019; (2) Centers that did not employ a full-time outside sales person in 2019

• 2019 highest and lowest gross sales for Signarama Centers in the United States that employed an outside sales person in 2019 and properly reported their sales for each of the 12 months in 2019

• 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 2019, and the criteria for inclusion in the Million Dollar Circle

Section I – Background Information

20 Things You Need to Know About the Signarama Franchise

Ends Decade Strong with Addition of More Than 60 New Owners in 2019

1.  In mid-February 2020, Signarama announced that the company had ended the previous decade on a high note. In 2019 alone, Signarama acquired 63 new owners and further expanded into international markets, pushing the brand to total more than 700 locations in 43 states and 60 countries.

2.  In addition to bringing on over 60 new owners in 2019, Signarama was recognized in a number of prestigious rankings, including Entrepreneur Magazine’s Franchise 500 list, earning the No. 212 spot – an increase of 37 spots from 2018 – as well as being recognized on the publication’s Best Franchises for Veterans list. Additionally, the brand secured a spot on Franchise Direct’s Top 100 Global Franchises.

3.  A.J. Titus, president of Signarama, said, “For more than 30 years, our brand has been focused on bringing top notch services to communities around the world and I’m thrilled to see that we are consistently reaching new heights every year. At the end of the day, each and every one of our franchisees are a part of our family and we are celebrating our accomplishments together, from hitting growth milestones, to continuously improving our services, even participating in the World Axe Throwing Championship as a Title Sponsor. We are looking forward to continuing our success in the new year.”

4.  Along with its new owners, Signarama on-boarded a Master License Partner in Canada and the United Kingdom, poising the brand for strong growth in those markets. Moving into the new year, the brand is hoping to expand further into additional international markets, such as Germany, Brazil, Chile, Mexico, and India. Signarama predicts to open well over 100 locations globally by the end of 2020.

5.  Titus added, “We’re looking forward to leveraging this growth for another year of success in 2020. Our team is committed to providing continuous training and support to help each franchisee succeed. Signarama’s fanatical support system and proven business model offers an attractive investment opportunity for those looking to join a family-owned business that positively impacts local and corporate businesses.”

Returns as Title Sponsor for 2020 World Axe Throwing League Championship

6.  In early November 2020, Signarama announced that it was the official title sponsor of the World Axe Throwing League’s (WATL) 2020 Championship event for a second year. Referred to as the 2020 Signarama World Axe Throwing Championship, the event took place December 4-6 at Bad Axe Throwing in Atlanta, Georgia.

7.  The 2020 Signarama World Axe Throwing Championship aired live on ESPN3 on December 6 at 2 p.m. ET. Viewers had the unique opportunity to watch the final six competitors throw live, including the chance to win the title of World Champion and the prize pool of $50,000. In 2020, WATL also televised the World Championship for Big Axe competition and Duals where two competitors throw on the same target and compete against another two competitors.

8.  A.J. Titus, president of Signarama, said, “Signarama‘s sponsorship isn’t just about putting our logo on a program name, it’s our way of connecting with the loyal, engaged and diverse audience that make up our customer base. Last year, we were blown away by the response of the World Axe Throwing League Championship. As this sport continues to grow and reach new audiences, we look forward to sharing the fun and action with everyone on December 6.”

9.  What started as a mission to create a forum for axe throwing facilities to establish official rules and regulations, the World Axe Throwing League has grown to 28 countries, over 266 affiliates, and more than 300 locations worldwide since its inception. Today, the League is the largest professional association for axe throwing in the world.

10.  Mario Zelaya, commissioner of the World Axe Throwing League, added, “We’re excited to have Signarama be this year’s title sponsor for a second year. With their ongoing support, we are confident that this will be the best televised event we’ve ever produced.”

Receives Five-Star VetFran Ranking

11.  In mid-January 2021, Signarama was recognized by the International Franchise Association (IFA) Franchise Education and Research Foundation’s VetFran Program as a Five-Star Franchise. With more than 700 locations in 30 countries, the brand places a high value on adding veterans of the military to its franchise family.

12.  To qualify for a five-star ranking, a company must have a clean audit report; minimum veteran discount of 20 percent; have been in business for at least five years; have been franchising the business for at least three years; 80 percent continuity rate over the past three years (verified by FDD Item 20); include Item 19 financial performance from FDD; at least 50 open units; participation in one VetFran meeting each year; and must have one Certified Franchise Executive (CFE) on staff.

13.  According to A.J. Titus, president of Signarama and VetFran board member, “A career in franchising provides returning veterans with an excellent path to become business owners and leaders within their community. Not only are we a good fit for veteran franchisees, but we encourage all of our franchisees to hire veterans as they reenter the workplace.”

14.  Beginning in 2021, Signarama will be offering a flat military discount of 20 percent on the initial franchise fee. In addition to the discount Signarama provides to U.S. military, franchisees receive training, financial assistance, and industry support as a new franchisee.

15.  Signarama has been ranked as one of the Top Three “Best for Vets” Franchises by Military Times and was recognized as one of the Top 50 Franchises for Military Veterans by USA Today. Most recently, Entrepreneur Magazine named Signarama one of the Top Franchises for Veterans.

16.  Ted DeWitt, Signarama franchisee and veteran, opened his store in Covina, CA with his wife, Lynda in 2009. According to DeWitt, “Signarama has an extensive training program in place and provides ongoing support to the franchisees. A veteran is adept at utilizing training and knowledge to create successful outcomes. With the training and support provided by the brand, veterans are set up for success.”

Company History

17.  Signarama was founded in 1985 by Roy Titus and his son Ray Titus in Farmingdale, New York. The Tituses already had years of experience in the signage industry from owning a Minuteman Press franchise. They used the knowledge they had gained to develop the idea for Signarama.

18.  Following the success of the first Signarama store, Roy and Ray Titus opened a second store in North Palm Beach, Florida. Franchising started later that year, in 1987. Signarama continued to grow, expanding to new states and in 1988, Ray Titus was appointed president of the company.

18.  Signarama’s growth happened quickly and by 1990, the company had opened 100 stores around the United States. This strong growth continued over the following decade and in 2000, the company opened its 500th location. Building on the success of Signarama, Ray Titus founded United Franchise Group (UFG) to franchise Signarama as well as other brands.

19.  Today, there are Signarama locations across the United States and in more than 13 countries, including France, French Guiana, and Australia. Additionally, the Titus family continues to own and operate Signarama as well as United Franchise Group.

Entrepreneur’s Franchise 500

20.  Signarama ranked No. 115 on Entrepreneur’s 2021 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 2020 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 2020 FDD.

Section IV – Number of Franchised and Company-Owned Outlets

Franchised

2017

• Outlets at the Start of the Year:  680
• Outlets at the End of the Year:  698
• Net Change:  +18

2018

• Outlets at the Start of the Year:  698
• Outlets at the End of the Year:  709
• Net Change:  +11

2019

• Outlets at the Start of the Year:  709
• Outlets at the End of the Year:  721
• Net Change:  +12

Company-Owned

2017

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

2018

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

2019

• 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, 2020 FDD) and Analysis

• The financial performance representation information in this Item 19 includes certain financial performance information relating to Signarama Centers’ operation in calendar year 2019.

• Signarama obtained 100% of the average gross sales data for the Centers listed in the Center Sales tables and the other financial performance representations included in this Item 19 from monthly sales reported to Signarama by the Centers. The monthly sales reports have not been audited by certified public accountants nor has Signarama sought to independently verify their accuracy for purposes of the financial performance representations.

• Not all Centers properly reported sales in 2019.

• The financial performance representations include average gross sales of Centers for the year 2019. “Gross sales” means total reported sales revenue, excluding any county or state sales tax collected.

Part 1 – Center Sales Study

• In this Center Sales Study, Signarama discloses the average gross sales in 2019 of Centers in the United States in operation for 2 full years or more as of December 31, 2019, which properly reported their sales for each of the 12 months in 2019, segmented into 2 categories: (1) Centers that employed a full-time outside sales person in 2019; (2) Centers that did not employ a full-time outside sales person in 2019.

• 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 in Operation for 2 Years or More

Centers With Full-Time Outside Sales Person