FASTSIGNS®
Date of Incorporation: 1986
Franchising Since: 1986
Headquarters: Carrollton, Texas
Business Description: FASTSIGNS specializes in selling, marketing, production and installation of visual communications including signs (both non-electrical and electrical), graphics, banners, flags, vehicle graphics, vehicle wraps, ADA signage, compliance signs, dimensional letters, dimensional signage, ready-to-apply lettering, exhibits and displays, decals and labels, exhibits, trade show and other displays, digital imaging, printing (including small format, large format and grand format), advertising and promotional products (including wearables), electronic or digital signage, 2D barcodes, websites (both regular and mobile-optimized), logo/artwork design and illustration, product wraps and other related graphics, marketing services and complementary products and services.
Franchise Offer: FASTSIGNS offers franchises to develop and operate Centers that specialize in producing and marketing signs and graphics and other products as described above under the System. The System includes the right to use various trade names and marks as well as construction and design plans, color schemes, signs and equipment for the Center premises. The System also includes procedures, specifications and formulas for selling, marketing, production and installation of visual communications.
Each franchise relationship is established under 1 of 2 basic arrangements. The first arrangement consists of a "Franchise Agreement" under which the franchisee establishes a single Center.
The second arrangement consists of (i) a “Development Agreement” under which a franchisee must establish more than 1 Center within a defined geographic area under a development schedule in the Development Agreement, and (ii) a separate Franchise Agreement for each Center established under the Development Agreement. Also, the opportunity to establish and operate satellite centers (the "Satellite
Center") may be offered to those interested once they are an existing franchisee. Satellite Centers do not have production facilities and signs and graphics are produced at one of the franchisee’s existing full-service Centers or subcontracted out. The Satellite Center is a limited service Center designed to provide an additional location through which to market the FASTSIGNS' products and services at lower development costs.
Financial Assistance: The Bancorp Bank ("Bancorp offers financing under the U.S. Small Business Administration (SBA) 7(a) financing program (as arranged by its franchise program manager, Franchise America Finance LLC) to qualified franchisees for acquiring, constructing and/or operating a Center. This program is available to new franchisees that are either developing a new Center or are purchasing an existing Center, but is unavailable to conversion franchisees. FASTSIGNS may offer conversion franchisees financing for the initial franchise fee necessary to establish a Center. If the franchisee pays $6,000 of the initial franchise fee to FASTSIGNS, they will finance $16,500 of the initial franchise fee.
Training and Assistance: Before the Center opening, the franchisee, or one of the Controlling Principals (with not less than a 25% interest in Franchisee, or a controlling interest if less than 25%), the computer graphics designer and customer service representative (or other designated personnel) must attend and complete the initial training program to the franchisor’s satisfaction. The duration of the training program currently is two weeks classroom instruction for up to nine hours each day, plus four days for Franchisee prior to classroom training in a FASTSIGNS Center. With FASTSIGNS approval, the franchisee’s additional Center personnel may attend the initial training program; however, FASTSIGNS may charge a fee for them to attend. The classroom instruction is currently conducted at FASTSIGNS corporate offices in Carrollton, Texas.
Territory: The Franchise Agreement grants the franchisee the right to operate a single Center only at the approved site. Franchisees are assigned a specific geographic area around the Center (the "Territory"). The Territory encompasses an area sufficient to include a Business Count of 4,000 businesses. If the franchisee complies with the Franchise Agreement, FASTSIGNS will not establish or grant others the right to establish a FASTSIGNS Center in the Territory unless there is a significant increase of at least 50% in the Business Count in the Territory. Franchisees may face competition from other franchisees, from outlets that owned by the franchisor, or from other channels of distribution or competitive brands that the franchisor controls.
Term of Agreement and Renewal: The length of the franchise term is 20 years with a renewal term of 20 years available if the franchisee meets the franchisor’s requirements.
Obligations and Restrictions: To ensure the Center operates efficiently, the franchisee must operate the Center at the times and in the manner described in the Manuals. Any Center personnel FASTSIGNS designates must satisfactorily complete the initial training program and must satisfy their educational or business experience criteria as designated at that time; and must otherwise be an individual FASTSIGNS accepts. The franchisee must also designate, in writing, an individual (the General Manager) who will assist the franchisee in managing the Center if the franchisee does not participate in the full time operation of the Center after the initial six month period the Center is open. The General Manager must devote his or her full-time, best efforts and constant personal attention to the day-to-day Center operations. The franchisee must refrain from using or permitting the Center premises to be used for any other purpose or activity at any time unless first obtaining written consent.
Total Number of Units: 530 units.
Investment Tables:
Initial Investment:
Full-Service Center
| Name of Fee | Estimated Low | Estimated High |
|---|---|---|
| Initial Franchise Fee | $34,500 | $34,500 |
| Leasehold improvements (includes networking) | $15,521 | $66,500 |
| Furniture & Fixtures | $8,027 | $11,016 |
| Deposits | $3,500 | $9,000 |
| Telephone & Networking | $4,000 | $6,000 |
| Decor, Menu Boards and Graphics | $4,442 | $4,560 |
| Tools and Saw | $6,714 | $7,309 |
| Production Equipment | $32,717 | $33,408 |
| Point-of-Sale Computer | $5,314 | $6,314 |
| Signage | $2,848 | $8,930 |
| Initial Inventory | $3,373 | $3,457 |
| Architectural/Engineering | $0 | $5,000 |
| Initial Advertising | $12,500 | $12,500 |
| Travel, lodging, meals and 2 employees' costs for initial training | $7,456 | $11,034 |
| Administrative Supplies | $1,464 | $1,612 |
| Business licenses and permits | $500 | $1,000 |
| Insurance deposits and premiums (first 3 months) | $646 | $1,000 |
| Professional Fees | $2,042 | $6,542 |
| Mobile Device | $499 | $829 |
| Loan Participation Fee (if applicable) | $0 | $2,000 |
| Working Capital | $30,000 | $60,000 |
| Total | $176,063 | $292,511 |
Satellite Center
| Name of Fee | Estimated Low | Estimated High |
|---|---|---|
| Initial Franchise Fee | $17,500 | $17,500 |
| Leasehold improvements | $19,250 | $35,000 |
| Furniture & Fixtures | $3,725 | $7,702 |
| Deposits | $2,000 | $5,000 |
| Telephone & Networking | $2,500 | $4,000 |
| Decor, Menu Boards and Graphics | $4,297 | $4,358 |
| Point-of-Sale Computer | $5,314 | $6,314 |
| Signage | $2,848 | $4,465 |
| Architectural/Engineering | $0 | $5,000 |
| Travel, lodging, meals and employee costs for initial training (1 person) | $4,420 | $6,860 |
| Administrative Supplies | $1,444 | $1,642 |
| Miscellaneous Supplies and Equipment | $4,654 | $4,762 |
| Business licenses and permits | $500 | $1,000 |
| Insurance deposits and premiums (first 3 months) | $366 | $590 |
| Professional Fees | $1,500 | $4,500 |
| Mobile Device | $499 | $829 |
| Working Capital | $15,000 | $30,000 |
| Loan Participation Fee (if applicable) | $0 | $2,000 |
| Total | $85,817 | $141,522 |
Conversion Franchise
| Name of Fee | Estimated Low | Estimated High |
|---|---|---|
| Initial Franchise Fee | $22,500 | $22,500 |
| Leasehold improvements | $5,000 | $15,500 |
| Furniture & Fixtures | $4,330 | $13,068 |
| Deposits | $0 | $0 |
| Telephone & Networking | $0 | $4,000 |
| Decor, Menu Boards and Graphics | $4,442 | $4,560 |
| Production Equipment | $0 | $33,275 |
| Point-of-Sale Computer (Software only) | $755 | $6,814 |
| Signage | $2,848 | $8,930 |
| Architectural/Engineering | $0 | $2,500 |
| Initial Advertising | $8,500 | $8,500 |
| Sales Training and/or Coaching | $2,500 | $2,500 |
| Travel, lodging, meals and employee costs for initial training (1 person) | $4,000 | $8,250 |
| Administrative Supplies | $618 | $1,572 |
| Miscellaneous Supplies and Equipment | $0 | $5,389 |
| Business licenses and permits | $0 | $1,000 |
| Insurance deposits and premiums (first 3 months) | $0 | $1,000 |
| Inventory | $834 | $3,457 |
| Professional Fees | $1,500 | $3,042 |
| Mobile Device | $0 | $829 |
| Working Capital | $0 | $30,000 |
| Total | $55,327 | $174,186 |
Ongoing Fees:
| Type of Fee | Amount |
|---|---|
| Service Fee | 3% of Gross Sales the first year. 6% of Gross Sales beginning the second year through the end of the term of the Franchise Agreement. |
| Ad Fee | 1% of Gross Sales the first year. 2% of Gross Sales beginning the second year through the end of the term of the Franchise Agreement. |
| Advertising Cooperative Fee, unless otherwise agreed to | Maximum 2% of Gross Sales. |
| Initial Advertising and Promotional Materials | $12,500 (new Center) and $8,500 (Conversion Franchise) |
| Initial Advertising and Promotional Materials for a sale of an existing Center to a third party buyer | $8,500 |
| Interest | Lesser of 18% per annum or highest rate allowed by applicable law. |
| Transfer Fee | $15,000 |
| Renewal Fee | No more than 10% of then-current initial franchise fee. |
| Indemnification | Varies according to loss. |
| Attorneys' Fees and Costs and Collection Agency Costs | Amount varies. |
| Post-Termination and Expiration Expenses | Amount varies. |
| Audit Fee | Cost of audit. |
| Technology Fee | Will not exceed $150 per month. |
| Email Addresses | $50 to $62 |
| Blackberry Devices | $75 |
Date of FDD: 2012
The above information has been compiled from the FDD of FASTSIGNS along with online sources.
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