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Signarama Franchise ProfilePrinter, Copying & Sign Franchises > Sign Manufacturing |
What Are the Initial Investment Requirements for a Signarama Franchise?
To open a Signarama franchise, you can expect an initial investment ranging from $120,205 to $339,971. This includes a franchise fee of $49,500. Additionally, you will need to have cash available between $120,205 and $195,845, along with a net worth requirement of $300,000 to $500,000. These figures are essential to ensure you have the financial stability to support your new business venture.
What Are the Ongoing Fees Associated with a Signarama Franchise?
Signarama franchisees must pay a royalty fee of 6% on gross sales, as well as a marketing fee of 1%. These ongoing fees are crucial for maintaining brand presence and ensuring franchisees receive the necessary support and resources from the franchisor. Understanding these costs is vital for financial planning and profitability.
What Is the Average Annual Revenue for a Signarama Franchise?
The average annual revenue per Signarama franchise unit is approximately $783,371, with a median revenue of $409,495. However, revenue can vary significantly, with the lowest reported annual revenue at $25,153 and the highest reaching $11,051,776. This range highlights the potential for profitability but also the importance of market conditions and operational efficiency.
What Is the Breakeven and Investment Payback Timeline for a Signarama Franchise?
Franchisees can expect to reach breakeven within 12 months of opening their Signarama location. The investment payback period is estimated at 24 months. This timeline provides a clear indication of how quickly you can expect to recover your initial investment, making it a critical factor in evaluating the franchise's financial viability.
Signarama 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:
Signarama 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 | 671 | 669 | 673 |
| Net Change YoY | -2 | 4 | |
| Franchised Units | 671 | 669 | 673 |
| Net Change YoY | -2 | 4 | |
| Corporate Units | 0 | 0 | 0 |
| Net Change YoY | 0 | 0 |
Investment Overview
The Signarama franchise offers a range of initial investment options, with a low end of $120,205 and a high of $339,971. The initial franchise fee is set at $49,500, alongside ongoing royalty and marketing fees of 6% and 1% respectively. Prospective franchisees should be prepared to have cash reserves between $120,205 and $195,845, with a net worth requirement ranging from $300,000 to $500,000.
Financial Performance
Signarama franchises average an annual revenue of $783,371, with a median revenue of $409,495. The revenue figures showcase a broad range, with the lowest annual revenue reported at $25,153 and the highest reaching an impressive $11,051,776. This variability highlights the potential for profitability, depending on location and management.
Breakeven and Payback
Franchisees can expect a breakeven period of approximately 12 months, making it a relatively quick return on investment. The average investment payback time is around 24 months, allowing franchise owners to recoup their initial investment in a timely manner, provided they effectively manage their operations.
Franchise Growth
The Signarama franchise network has shown steady growth, with 671 units in 2021, slightly decreasing to 669 in 2022, and then rising to 673 in 2023. This consistency in franchised units indicates a stable business model and ongoing interest from new franchisees, suggesting resilience in the brand's market presence.
Operational Insights
Franchisees should be aware of the average operating expenses, which total $13,236,539 annually. Key expense categories include payroll, advertising, and professional fees, making up significant portions of the budget. Understanding these costs is crucial for maintaining profitability and ensuring efficient operations.
Support and Training
Signarama provides comprehensive support and training for its franchisees, ensuring they are well-equipped to manage their businesses. This includes assistance with site selection, marketing strategies, and ongoing operational guidance. The franchise’s commitment to franchisee success is a key factor in its overall growth and stability in the market.
Frequently Asked Questions
The initial investment for a Signarama franchise ranges from $120,205 to $339,971, which includes the franchise fee of $49,500 and other startup costs.