Fastsigns produce custom signs and marketing materials for businesses in Canada and seven other countries. They claim to be the leaders in a market worth $29 billion per year.
Fastsigns were launched in 1985 and they have offered franchise opportunities since 1986. They are headquartered in Carrollton, Texas. The company designs, produces, installs and maintains all types of sign as well as producing other graphic and marketing materials and further complementary products. The organization has more than 765 outlets across the globe, including the US, the UK, Chile, Grand Cayman, Puerto Rico and more.
Fastsigns at a glance:
With reasonable liquid cash and net worth requirements and affordable set-up costs, starting a Fastsigns franchise may be possible for many entrepreneurs. Fastsigns do not require previous experience in the signage industry, although having owned or managed a business before would clearly be an advantage. The company mandates that either the franchisee or their designated manager is on site to oversee the daily running of the store and to liaise with business customers. After the initial set-up period, you could operate this franchise as a passive investment.
Set-up costs for a Fastsigns franchise range from $240,000 to $310,000 depending on the size of your store and the range of services you provide. This cost ranks as low to moderate.
The franchise fee is $49,750. Military veterans may be eligible for a 50% discount off this cost.
After opening, you are required to pay an array of ongoing fees and charges. They include:
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| Key Costs Guide | Low | High |
|---|---|---|
| Franchise fee | $49,750 | $49,750 |
| Leasehold improvements | $21,000 | $37,600 |
| Furniture and fixtures | $10,700 | $12,800 |
| Deposits | $2,900 | $4,500 |
| Telephone and networking | $1,200 | $6,800 |
| Décor and graphics | $1,900 | $1,900 |
| Tools and supplies | $10,300 | $10,300 |
| Production equipment | $64,880 | $67,000 |
| Commercial display, laser equipment and licenses | $1,500 | $1,500 |
| Computer equipment and software | $1,500 | $1,500 |
| Signage | $2,300 | $5,300 |
| Initial inventory | $2,700 | $2,700 |
| Architect/engineering | $0 | $4,900 |
| Initial advertising | $14,500 | $14,500 |
| Expenses during training | $7,400 | $11,500 |
| Insurance (first three months) | $625 | $1,125 |
| Business licenses, permits | $79 | $600 |
| Working capital | $40,000 | $65,000 |
Yes. Fastsigns claim average store revenues of $1,200,000 per year, with the top performers generating discretionary profit (profits before any distribution to owners and shareholders) of 32%. On that basis, Fastsigns franchise owners would receive discretionary profits of $384,000 per year – an excellent outcome. However, other sources say profit margins of 20% are more typical, which would produce a discretionary profit of $240,000 on the same $1.2 million turnover – still a very good result.
The failure rate for a Fastsigns franchise is 1% in year one, rising to 4% by year three. This ranks as low.
Franchisees are assigned a specific geographic area around their store (the territory), which shall encompass a minimum of 4,000 businesses. If franchisees comply with their franchise agreement, the franchisor will not establish or grant others the right to establish a Fastsigns store in the territory unless there is an increase of at least 25% in the number of businesses in the area.
Fastsigns support for franchisees includes:
Low to moderate start-up costs, strong profits, a low failure rate and the support of the industry’s leading brand all point to a solid franchise opportunity. Apart from the fairly hefty franchise fee, there are few downsides to starting a Fastsigns store. In a $29 billion market, which equates to $783,000 average annual revenues per store – well short of the average $1,200,000 that Fastsigns say their franchisees earn.
Could you make your store deliver almost half a million dollars more per year than the total market average? Do your homework to forensically examine the competition in your selected area, and the potential for new sales, before jumping in to this (or any other) franchise.
It begins with an application. Start the process today.
Starting a new franchise can be an exciting opportunity, but it’s easy to get lost in a maze of business loan applications that can make funding your new signage business like too much hard work. Instead, cut out the hassle and cut to the chase. Swoop has the best lenders for the best franchises across Canada. Just tell us what you need and leave the rest to us.
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Chris is a freelance copywriter and content creator. He has been active in the marketing, advertising, and publishing industries for more than twenty-five years. Writing for Barclays Bank, Metro Bank, Wells Fargo, ABN Amro, Quidco, Legal and General, Inshur Zego, AIG, Met Life, State Farm, Direct Line, insurers and pension funds, his words have appeared online and in print to inform, entertain and explain the complex world of consumer and business finance and insurance.
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