FastSigns Franchise in 2024: Costs, Fee & FDD

FastSigns is a leading signage and visual communications franchise that was founded in 1985 by Gary Salomon and Bob Schanbaum in Dallas, Texas. It quickly grew in reputation for offering high-quality custom signs and visual graphics solutions. With a focus on innovation, FastSigns became a key player in the industry, helping businesses across various sectors enhance their branding and communication efforts. Over the years, it has earned a strong position as one of the most recognized and trusted names in signage solutions, making it a solid option for franchisees.

At its core, FastSigns provides an array of products and services that go beyond traditional signage. Their offerings include custom banners, graphics, digital displays, vehicle wraps, and even interior décor. They cater to a broad clientele, with businesses of all sizes using their services to improve visibility, communicate messages, and enhance customer experiences. The core customer base ranges from small local businesses to large corporations in industries like retail, healthcare, and hospitality.

Today, FastSigns operates on a large scale with over 750 locations across 9 countries, including the U.S., Canada, the U.K., and Australia. The franchise serves tens of thousands of customers daily, providing tailored solutions that meet the needs of a diverse market. The company’s international footprint continues to grow, making it a global player in the visual communications sector, while maintaining a strong presence in its home market.

FastSigns franchisees benefit from an extensive support system. This includes comprehensive training programs that cover everything from operations to marketing and sales strategies. New franchisees receive hands-on guidance in setting up their businesses, and ongoing support is offered through webinars, in-person conferences, and a dedicated support team. Additionally, FastSigns provides marketing assistance, technology tools, and access to a network of suppliers, ensuring franchisees have the resources they need to succeed in a competitive industry.

FastSigns Franchise Insights

1. FastSigns is well-known for its flexibility, offering a wide range of services that go beyond traditional signage, including digital displays and vehicle graphics, which help franchisees meet diverse customer needs.
2. The franchise has a strong reputation for fostering innovation, consistently adapting to the latest industry trends like virtual signage and augmented reality, giving franchisees a competitive edge.
3. FastSigns appeals to businesses of all sizes, from small local shops to large corporations, offering scalable solutions that make it an attractive option for a wide range of clients.
4. FastSigns prioritizes community involvement, encouraging franchisees to build local connections and support area businesses, which helps to cultivate strong customer loyalty.

FastSigns Franchise Key indicators

How much does it cost to open a FastSigns franchise?

Understanding the potential investment size and capital requirements is crucial when considering opening a FastSigns franchise. These financial commitments, including initial franchise fees, equipment costs, and ongoing operational expenses, impact the feasibility and profitability of the venture. Thoroughly evaluating these factors ensures that potential franchisees are prepared for the financial responsibilities and can make informed decisions about their ability to sustain and grow the business, ultimately contributing to long-term success.

Min & Max Investment

Opening a FastSigns franchise involves several key costs, which are outlined in Item 7 of the Franchise Disclosure Document (FDD). You can see a breakdown of the costs to open a FastSigns below from the most recent Item 7 below:

Item 7 in the Franchise Disclosure Document (FDD) is the “Estimated Initial Investment” section. It outlines the total costs a franchisee can expect to incur when starting a franchise, including the initial franchise fee, equipment, inventory, real estate, and other startup expenses. This section is crucial because it provides potential franchisees with a detailed understanding of the financial commitment required, helping them assess affordability and plan their investment strategy effectively.

Required Capital

For FastSigns, the required capital, liquid assets, and net worth align with general standards in the signage and visual communications franchise industry. Based on available estimates and industry benchmarks:

• Initial Investment FastSigns’s initial investment typically ranges from $248,000 to $345,000. This covers the franchise fee, equipment, and setup costs for launching a new location. Assuming that you will finance your franchise investment, you should plan to have 20% of the total investment amount in the form of equity (cash) for the investment.
• Liquid Assets Franchisees are generally expected to have liquid assets between $80,000 and $150,000 to cover operational costs and ensure smooth cash flow during the startup period.
• Net Worth The recommended net worth for FastSigns franchisees is estimated to be around $300,000 to $500,000, which helps ensure financial stability for both startup and ongoing expenses as the business grows.

These figures are estimates and may vary based on the specific location and market conditions. It’s advisable to consult directly with FastSigns for precise financial requirements.

How much does a FastSigns franchise owner make?

Calculating the salary of a FastSigns franchise owner involves analyzing gross sales to determine total revenue, assessing operational efficiency to understand profit margins, and accounting for franchisor fees and additional expenses such as rent, utilities, and payroll. Effective management of these factors can significantly impact the profitability and financial success of a FastSigns franchise owner. This comprehensive financial analysis helps estimate net profits, from which the owner’s salary can be derived. A clear understanding of these factors ensures accurate salary projections and financial planning for sustainable business operations.

FastSigns Revenue & Gross Sales

Based on the most recent analysis, FastSigns franchises achieved a median gross sales of $786,000, highlighting the brand’s strong position in the visual communications industry. This financial performance demonstrates the consistent demand for signage and marketing services, offering franchisees the potential for substantial revenue generation.

Which key factors impact the average revenue performance of FastSigns franchisees?

The performance of U.S. FastSigns franchisee median gross sales over the past year can be attributed to several key factors. First, the increasing demand for visual marketing solutions, particularly as businesses rebound from economic disruptions, has driven more companies to invest in signage and digital displays. Additionally, FastSigns’s ability to innovate with products like interactive digital signage and vehicle graphics has expanded their service offerings, attracting a broader customer base. The franchise’s strong support system, including marketing tools and technology upgrades, has helped franchisees optimize operations and boost sales. Finally, the growing focus on branding for small and mid-sized businesses has kept FastSigns franchisees busy, leading to steady revenue growth.

FastSigns Franchise Operational Costs

Operational costs for a franchise like FastSigns are the ongoing expenses necessary to run the day-to-day operations of the business. These costs are crucial for maintaining the business’s efficiency and ensuring customer satisfaction. For a FastSigns franchise, operational costs include:

• Signage Material Costs Expenses for purchasing raw materials such as vinyl, acrylic, metal, and other substrates used in the production of signs, banners, and displays.
• Labor Costs Salaries and wages for employees, including designers, production staff, installers, and salespeople, as well as benefits and any overtime pay.
• Rent or Lease Payments The cost of leasing commercial space for your FastSigns center, which includes the physical production area, showroom, and office space.
• Utilities Ongoing costs for electricity, water, internet, and other utilities required to operate printing machines, digital displays, and lighting within the center.
• Equipment Maintenance and Repairs Costs associated with the maintenance and occasional repair of sign-making machinery, printers, and other essential equipment.
• Supplies and Inventory Routine purchases of inks, cutting tools, paper, adhesives, and cleaning supplies that are critical for daily production.
• Marketing and Local Advertising Expenses for local marketing efforts, such as running promotions, direct mail campaigns, or sponsoring local events to attract new customers.
• Technology and Software Fees Costs related to maintaining point-of-sale systems, design software licenses, and any other technology tools that assist in creating and managing signage projects.
• Insurance Insurance premiums for general liability, property insurance, and workers’ compensation coverage to protect the business and its employees.
• Vehicle Expenses If you offer delivery or installation services, costs for maintaining vehicles, fuel, and insurance for company-owned vehicles will be ongoing operational considerations.
• Miscellaneous Costs Other expenses such as permits, professional services (accounting, legal), and licenses required to keep the business compliant with local regulations.

Careful management of these operational costs will be essential for the profitability and smooth functioning of your FastSigns franchise.

FastSigns Franchise Fees

When considering the ongoing fees associated with opening a FastSigns franchise, it’s important to be aware of several key costs. These fees are essential for maintaining operations and marketing efforts and ensuring the continued success of your business.

• Service Fee In the first year, franchisees pay 3% of gross sales, which increases to 6% starting in the second year through the end of the franchise term. If you’re opening a new or conversion center, you’ll pay the greater of $1,250 or 6% of gross sales beginning in the 13th month.
• Ad Fee FastSigns charges 1% of gross sales in the first year, increasing to 2% from the second year onward. These funds go toward national advertising efforts, including web, digital, and social media campaigns.
• Additional Fees There might be additional fees related to marketing, technology upgrades, or other services that FastSigns provides to maintain brand standards and operational efficiency.

It’s crucial to budget for these ongoing costs to ensure your FastSigns franchise remains competitive and successful. There may also be other fees depending on specific circumstances or the location of your franchise.

FastSigns Franchise Earnings

As a FastSigns franchisee, the potential for strong financial returns is clear based on median gross sales figures. Franchisees typically achieve a median gross sales of $786,000, demonstrating consistent demand for visual communication services across various industries. This robust revenue stream highlights the value of the brand’s offerings and the growing need for high-quality signage and marketing solutions in both local and global markets.

For owner-operators, the earnings potential is even more attractive, with many franchisees seeing a median owner-operator income of approximately $157,000 based on industry profit margins. This figure reflects the hands-on involvement of franchisees who actively manage their business, allowing for greater profitability. As a franchisee, being actively engaged in the daily operations can lead to increased earnings while contributing to the overall growth of the business.

How to Open a FastSigns Franchise

The process of becoming a FastSigns franchisee is structured to guide you through every step, from your initial inquiry to the opening of your business. Here’s an overview of the key steps involved:

1. Initial Inquiry You or your franchise specialist submits an initial inquiry basic information about your interest and background. You should also conduct thorough research on the franchise, including seeing all of the information available on the Vetted Biz franchise intelligence platform, including access to the most recent Franchise Disclosure Document (FDD).
2. Introductory Call and Application After expressing interest, you’ll have an initial call with the franchise development team to discuss your goals and qualifications. If it’s a good fit, you’ll complete a formal application, providing details about your background and financial qualifications.
3. Discovery Day You’ll be invited to a Discovery Day, where you’ll visit the corporate office, meet the leadership team, and learn more about day-to-day operations. This gives both you and the franchisor a chance to ensure it’s the right fit.
4. Franchise Agreement Signing If both parties agree to move forward, you’ll sign the Franchise Agreement, formally securing your franchise rights. At this stage, you’ll also pay the initial franchise fee.
5. Training and Site Selection FastSigns provides comprehensive training on business management, signage production, and marketing strategies. You’ll also work with their real estate team to find and secure a suitable location for your center.
6. Build-Out and Grand Opening After training, you’ll prepare your center for opening by completing the necessary build-out, purchasing equipment, and hiring staff. FastSigns will assist you with marketing and promotional strategies to ensure a successful grand opening.

By following these steps, you’ll be well-equipped to launch and manage your FastSigns franchise, with ongoing support from the corporate team.

Pros & Cons

Pros

Established Brand and Industry Leader: FastSigns is a well-known name in the visual communication industry, with over 35 years of experience, which provides franchisees with instant brand recognition.

Diverse Service Offerings: The franchise offers a wide range of products, from traditional signage to digital solutions, attracting clients across various industries and creating multiple revenue streams.

High Earnings Potential: With median gross sales of $786,378 and owner-operator earnings around $157,276, there is significant potential for a healthy return on investment.

Recession-Resistant: The signage industry remains essential for businesses even in tough economic times, providing stability for franchisees.

Cons

Competitive Market: The signage industry is competitive, with both local independent providers and other national franchises vying for similar business opportunities, which could make market penetration more challenging.

Technology-Dependent Operations: As FastSigns integrates more digital and interactive signage options, keeping up with the latest technology trends may require ongoing investments in new equipment and software.

Hands-On Involvement Required: While not as operationally intensive as some other franchises, running a FastSigns center still requires active involvement in sales, marketing, and customer service to be successful.