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FASTSIGNS Franchise ProfileAdvertising & Marketing Franchises > Signage |
What Are the Initial Investment Requirements for a FASTSIGNS Franchise?
To open a FASTSIGNS franchise, you will need to consider a low initial investment of approximately $96,243, with a high end reaching up to $344,624. The initial franchise fee is set at $49,750. Additionally, you should be prepared for ongoing royalty fees of 6% and a marketing fee ranging from 1% to 2%. It's important to have cash available between $49,750 and $65,000 and a net worth of at least $300,000 to qualify for this opportunity.
What Is the Average Revenue Potential for FASTSIGNS Franchisees?
FASTSIGNS franchisees can expect an average annual revenue of around $1,201,287 per unit, with a median revenue of $1,212,455. The revenue range is quite broad, with the lowest annual revenue reported at $29,325 and the highest at an impressive $24,754,004. This variability highlights the potential for significant earnings depending on location and management effectiveness.
How Quickly Can You Expect to Break Even with a FASTSIGNS Franchise?
The breakeven time for a FASTSIGNS franchise is approximately 14 months, which is relatively quick compared to many other franchise models. Franchisees can expect to pay back their initial investment in about 13 months, making it an attractive option for those looking to recoup their costs swiftly. This efficient payback period can be a key factor in your decision-making process.
What Are the Ongoing Operating Expenses for FASTSIGNS Franchisees?
Operating expenses for FASTSIGNS franchisees average around $1,047,925 annually, which constitutes about 87.1% of their revenue. Key expense categories include labor costs at $424,186, advertising expenses at $34,799, and general and administrative expenses at $166,986. Understanding these costs is crucial for effective financial planning and ensuring the profitability of your franchise location.
FASTSIGNS Franchise Financial Requirements
Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.
The minimum total assets (minus liabilities) you must possess.
Net Worth Required:
The estimated period to recoup your total investment.
Investment Payback:
The initial fee paid to join the franchise system.
Franchise Fee:
Ongoing percentage of revenue paid to the franchisor.
Royalty Fee:
Regular contribution toward the franchise’s advertising fund.
Marketing Fee:
The estimated timeframe to recover your initial costs.
Breakeven Time:
The total amount required to launch the franchise.
Initial Investment:
The minimum liquid capital you must have on hand.
Cash Required:
The typical yearly revenue generated per franchise location.
Average Revenue:
The middle value of yearly revenue among franchise locations.
Median Revenue:
The largest reported annual revenue among franchisees.
Highest Revenue:
The smallest reported annual revenue among franchisees.
Lowest Revenue:
A broad sector defining similar types of franchise businesses.
Industry:
A more specific division within the broader industry.
Category:
The key individuals guiding the franchise’s strategy and growth.
Leadership:
The official business address of the franchisor’s headquarters.
Corporate Address:
Available financing options to help start the franchise.
Funding Year:
The main organization that owns the franchise brand.
Parent Company:
FASTSIGNS Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2021 | 2022 | 2023 |
|---|---|---|---|
| Total Units | 659 | 672 | 689 |
| Net Change YoY | 13 | 17 | |
| Franchised Units | 659 | 672 | 689 |
| Net Change YoY | 13 | 17 | |
| Corporate Units | 0 | 0 | 0 |
| Net Change YoY | 0 | 0 |
Investment Overview
The FASTSIGNS franchise offers a range of initial investment costs, with a low of $96,243 and a high of $344,624. The initial franchise fee is set at $49,750, and franchisees are required to have cash reserves between $49,750 and $65,000. To qualify, potential franchisees need a net worth of at least $300,000, making it accessible yet financially prudent for aspiring business owners.
Financial Performance
FASTSIGNS units demonstrate strong financial potential, with an average annual revenue of $1,201,287 and a median revenue of $1,212,455. The highest annual revenue recorded is an impressive $24,754,004. Franchisees can expect a breakeven period of approximately 14 months and an investment payback timeframe of around 13 months, making it an attractive option for investors looking for quick returns.
Franchise Growth
The FASTSIGNS franchise has shown consistent growth over the years, with an increase in franchised units from 659 in 2021 to 689 in 2023. This upward trend indicates a robust demand for their services and a solid franchise model that continues to attract new investors. The absence of corporate-owned units suggests a strong focus on franchisee empowerment and support.
Royalty and Marketing Fees
Franchisees are required to pay a royalty fee of 6% of gross sales, along with a marketing fee that ranges from 1% to 2%. These fees contribute to the overall operational support and marketing initiatives that help drive brand recognition and customer engagement, ensuring franchisees have the resources needed to succeed.
Operational Insights
The average operating expenses for FASTSIGNS franchisees total around $1,047,925 annually, which includes labor expenses of $424,186 and advertising expenses of $34,799. Despite these costs, the gross profit margin stands at 72.6%, indicating strong profitability potential for franchise owners who effectively manage their expenses.
Company Background
FASTSIGNS is a leader in the sign and graphics industry, providing a wide array of visual communication solutions to businesses of all sizes. Established with a commitment to quality and innovation, FASTSIGNS has built a reputation for exceptional customer service and cutting-edge products. As a franchise, it empowers entrepreneurs to tap into the growing demand for signage and marketing materials, making it an appealing option for those looking to enter a thriving sector.
Frequently Asked Questions
The initial investment for a FASTSIGNS franchise ranges from $96,243 to $344,624, which includes the franchise fee of $49,750 and other startup costs.