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 2021 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 2021 FDD

• Section IV – Number of franchised and company-owned Signarama outlets at the start of the year and the end of the year for 2018, 2019, and 2020, based on Item 20 of the company’s 2021 FDD

• Section V – Presentation and analysis of Signarama’s financial performance representations, based on Item 19 of the company’s 2021 FDD, including information on the:

• 2020 average and median gross sales for Signarama Centers in the United States in operation for 2 full years or more as of December 31, 2020, which properly reported their sales for each of the 12 months in 2020, segmented into 2 categories: (1) Centers that employed a full-time outside sales person in 2020; (2) Centers that did not employ a full-time outside sales person in 2020

• 2020 highest and lowest gross sales for Signarama Centers in the United States that employed an outside sales person in 2020 and properly reported their sales for each of the 12 months in 2020

• 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 2020, and the criteria for inclusion in the Million Dollar Circle

Section I – Background Information

18 Things You Need to Know About the Signarama Franchise

Celebrates Major Milestones During World Expo Event

1.  In mid-August 2021, Signarama hosted hundreds of franchisees and vendors during the United Franchise Group (UFG) World Expo in West Palm Beach, Florida. The four-day event took place at the Palm Beach County Convention Center, just a few miles from the Signarama global headquarters. More than 200 Signarama franchisees attended the brand’s biggest event of the year, which also happened to be a 35-year celebration for the brand.

2.  With a jam-packed agenda, franchisees learned about the latest updates in technology, product development, marketing strategies, and vendor partnerships. In breakout sessions, speakers addressed important strategic topics on how to make franchisees even stronger.

3.  In addition to brand-specific content, franchisees had the opportunity to attend general sessions and hear from UFG leadership, including CEO Ray Titus. Attendees also had the unique opportunity to hear from four keynote speakers including motivational speaker Joe Theismann; author Chris McChesney; and founder of Fans First Entertainment and owner of the Savannah Bananas, Jesse Cole. Each of the speakers brought fresh perspective to Signarama franchisees and left them inspired, motivated, and ready to apply lessons learned during Expo.

4.  Highlights from the 2021 convention include:

• 2020 system-wide sales reached $341 million, which was impressively up from $316 million in 2019.

• 63 Signarama centers around the world qualified for inclusion in the Million Dollar Circle in 2020. Criteria for inclusion was $1 million in gross sales in the calendar year of 2020.

• The Signarama President’s Award, which recognizes a longstanding franchisee with excellent performance, significant contributions to the benefit of the brand, and consistent sales impact and growth, was awarded to Beatriz Cardona and Roberto Hiller of New Tampa, FL.

• The 2020 Signarama MVP award was presented to Bob Chapa III of Signarama Troy/Metro Detroit, MI, for achieving over $8 million in sales in the calendar year of 2020.

• Over 100 vendors were present on the United Franchise Group Trade Show floor for live demonstrations of the latest products and equipment.

• The 2020 Signarama Sign Awards Ceremony honored franchisees who produced amazing projects across 11 categories, including the “Best in Show” Award, which was presented to Jason (“JB”) and Cynthia Brown from Louisville (Dixie), KY for their team’s work on a stunning design for local celebrity Chef Fernando Martinez’s latest restaurant concept, La Bodeguita de Mima.

5.  One of the most exciting parts of the World Expo was when Signarama set a Guinness World Record for most signatures on a banner in one hour. On June 28th, the brand successfully captured the needed signatures on the 25-foot banner that was themed “We Love Signs” in celebration of their anniversary marketing campaign. Guinness World Records adjudicator Michael Empric flew in for the event and was present to count each participant. He later officially announced and confirmed the record attempt totaling 689 signatures on-stage in front of all the participants. The minimum number to set this Guinness World Records title was 250.

6.  A.J. Titus, president of Signarama and United Franchise Group, said, “The 2021 World Expo event was remarkable. This was the first time that we’ve been able to gather with our franchisees for an in-person event in over a year and to top it off, we got to celebrate 35 years in business together. The hard work and dedication to the brand was apparent during the awards, where we recognized a record number of award winners this year. In total, the brand gave out nearly 300 awards to Signarama franchisees from across the globe. Without our franchisees, we wouldn’t be where we are today.”

Appoints New Vice President of Operations

7.  At the end of August 2021, Signarama announced the addition of one of South Florida’s print industry veterans, Chuck Gerardi, to assume the position of vice president of operations. Effective immediately, Gerardi will oversee all aspects related to operations and new location launches for the global sign and graphics company.

8.  Gerardi spent more than 30 years in the print industry in sales management with outlets including The Dallas Morning News and The Palm Beach Post. While at The Post, he was the architect of two long-term strategic pricing and yield optimization initiatives – one to improve yield in advertising revenue, and the other to optimize life-cycle subscription revenue.

9.  Most recently, he was director of sales and marketing for Southeastern Printing in Stuart & Miami, FL. He brings with him invaluable wide-format printing experience, and insights from managing over 20 sales executives and $33 million in sales across his multiple locations.

10.  Gerardi is also active in local business and charitable organizations in South Florida, including the board of directors for the South Florida Fair, and the Roger Dean Chevrolet Stadium advisory board. He has served on the education foundation board of both Palm Beach and Martin counties, the Clark Advanced Learning Center advisory board, and Helping People Succeed/Martin county.

11.  In his new role, Gerardi will evaluate and implement initiatives that reinforce the operational processes to support further growth of the Signarama brand as well as continued franchisee success at all stages of the entrepreneurial journey. Chuck will bring years of management experience to the brand and will work closely with the dedicated field staff supporting Signarama’s already successful owners.

12.  Gerardi said, “I’ve known about the Signarama brand for years and it’s an honor to join a passionate and experienced leadership team. The print industry is alive and well – I have watched it grow and expand more in the last few years than the entirety of my career and appreciate the opportunity to help Signarama grow that part of our business even more and explore new opportunities in our industry in the coming months. I look forward to working with our franchise partners to support and grow the brand.”

13.  A.J. Titus, president of Signarama, shared on behalf of the entire team, “We are excited to have Chuck join the Signarama family. His experience is unmatched and will greatly help us continue to drive growth!”

Company History

14.  Signarama was founded in 1985 by Roy Titus and his son Ray Titus in Farmingdale, New York. The Tituses had owned a Minuteman Press franchise for several years and they used their experience in the signage industry to start their own business. The first Signarama was a success in the local community and the Tituses decided to open a second location in Florida.

15.  In 1987, Signarama began franchising. Signarama grew rapidly over the next few years and the Tituses moved the company’s headquarters from New York to Florida. By 1990, Signarama had grown to 100 stores.

16.  Over the next decade, Signarama continued its strong growth and by the early 2000s there were 500 stores in operation. In 2005, Ray Titus, who is currently the CEO of Signarama, formed United Franchise Group (UFG) to franchise Signarama as well as other brands.

17.  Today, Signarama has locations across the United States and over a dozen countries, including Australia, France, Ireland, and Poland. The Titus family continues to own and operate Signarama and United Franchise Group.

Entrepreneur’s Franchise 500

18.  Signarama ranked No. 110 on Entrepreneur’s 2022 Franchise 500 list.

Section II – Estimated Costs

• Detailed estimates of Signarama franchise costs, based on Item 7 of the company’s 2021 FDD.

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

• 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 2021 FDD.

Section IV – Number of Franchised and Company-Owned Outlets

Franchised

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

2020

• Outlets at the Start of the Year:  721
• Outlets at the End of the Year:  707
• Net Change:  -14

Company-Owned

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

2020

• 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, 2021 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 2020.

• 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 2020.

• The financial performance representations include average gross sales of Centers for the year 2020. “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 2020 of Centers in the United States in operation for 2 full years or more as of December 31, 2020, which properly reported their sales for each of the 12 months in 2020, segmented into 2 categories: (1) Centers that employed a full-time outside sales person in 2020; (2) Centers that did not employ a full-time outside sales person in 2020.

• 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

• Number of Centers:  89
• Average Gross Sales:  $1,129,850
• Centers That Met or Exceeded Average Gross Sales:  32.3%
• Median Gross Sales:  $879,564
• Average Number of Years in Operation:  12.40

Centers Without Full-Time Outside Sales Person

• Number of Centers:  211
• Average Gross Sales:  $386,803
• Centers That Met or Exceeded Average Gross Sales:  37.9%
• Median Gross Sales:  $300,632
• Average Number of Years in Operation:  10.66

Total Centers

• Number of Centers:  300
• Average Gross Sales:  $607,240
• Centers That Met or Exceeded Average Gross Sales:  26.7%
• Median Gross Sales:  $396,247
• Average Number of Years in Operation:  11.18

• On average, the Centers in the Center Sales financial performance representations in Table 1 have been operating for 11.18 years. 43% of the Centers included have been in operation for more than 11.18 years and 57% have been in operation for less than 11.18 years.

Part 2 – Highest Volume and Lowest Volume Center Sales of Centers with Outside Sales Person

• In this Highest Volume and Lowest Volume Center Sales financial performance representations, of the Centers that employed an outside sales person in 2020, Signarama discloses the highest and lowest gross sales of the Centers in the United States which properly reported their sales for each of the 12 months in 2020.

Highest Sales Volume Center

• Number of Centers:  1
• Gross Sales:  $8,433,651
• Actual Number of Years in Operation:  15

Lowest Sales Volume Center

• Number of Centers:  1
• Gross Sales:  $142,006
• Actual Number of Years in Operation:  10

• The Highest Volume and Lowest Volume Center Sales financial performance representation is based on a population of 88 Centers.

Part 3 – Hall of Fame Centers

• In this Hall of Fame Centers financial performance representation, Signarama discloses: (1) the criteria for membership in the Hall of Fame; and (2) the number of Centers that have achieved Hall of Fame membership status within the Signarama franchise system.

• Designation as a Hall of Fame Center serves to recognize Centers for their outstanding achievement in business and exemplary overall performance as a Signarama Center.

• Members of the Hall of Fame are nominated into the Hall of Fame by their peers (other franchisees). In order to be nominated, the Center and its owner must meet all of the following criteria:

• Center has operated for 6 years or more;
• Franchisee is a team player;
• Franchisee serves as a Mentor to other franchisees;
• Center has attained gross sales of $1,000,000 or more in 2 consecutive years;
• Franchisee has attended at least 1 convention or regional meeting in each of the 3 years prior to nomination;
• Center is a current member of the Marketing Fund*; and
• Center location is brand compliant.

• *All new franchisees are required to become members of the Marketing Fund; however, when the Marketing Fund was originally established and for a period of years after implementation of the Marketing Fund, membership was optional.

• Hall of Fame Members as of December 31, 2020: 76 Centers

• Of the 76 Centers that have been nominated into the Hall of Fame, 59 Centers were located in the United States and 17 in other countries.

Part 4 – Million Dollar Circle Centers

• In this Million Dollar Circle Centers financial performance representation, Signarama discloses (1) the criteria for inclusion in the Million Dollar Circle; and (2) the number of Centers included in the Million Dollar Circle in 2020.

• Criteria for inclusion in the Million Dollar Circle is $1,000,000 in gross sales in the calendar year of 2020.

• A total of 63 Centers qualified for inclusion in the Million Dollar Circle in 2020.

• On average, the 2020 Million Dollar Circle Centers have been in operation for 15.27 years. 59% of the Million Dollar Circle Centers have been in operation for more than 15.27 years and 41% have been in operation for less than 15.27 years.

• Of the 63 Centers that qualified for inclusion in the 2020 Million Dollar Circle, 49 Centers were located in the United States, 7 in Australia, 3 in New Zealand, and 4 in South Africa.

• Some outlets have sold this amount. Your individual results may differ. There is no assurance that you’ll sell as much.

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