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Signal 88 Security Franchise Costs & Fees

Date of Incorporation: 2003
Franchising Since: 2008
Headquarters: Omaha, Nebraska

Business Description: Signal 88 LLC is the franchisor. The franchisor has developed a comprehensive system for the opening and operation of a security-services business specializing in security patrols and surveillance, security consulting, executive protection, and training in personal safety, risk avoidance, and threat management for the workplace.

Franchise Offer: The franchise is for the establishment and operation of a security -services business that would include patrol and dedicated service under the service mark and trade name Signal 88 Security. Specifically, franchisees will engage in the provision of onsite and off-site surveillance, executive security services, and security consulting services for contracting clients.

Financial Assistance: The franchisor offers franchisees financing for their ordinary, reasonable, and necessary business expenses once franchisees begin operating their Franchised Business. The franchisor may also, from time to time, and at franchisees’ request, assist them in obtaining financing from a third-party for all or part of their investment; however, the franchisor will not guarantee all or any part of franchisees’ note, lease or obligations and the franchisor will not receive any revenue from franchisees’ placement of financing.

Training and Assistance: The franchisor will provide franchisees and no more than 2 other managers 1 initial training course, the cost of which is included in the Franchise Fee. This training program consists of classes conducted over the telephone, online or at your location. This training will cover basic aspects of establishing and operating a Franchised Business, including all phases of selling, marketing, performance, pricing, customer service issues, employee training and relations, accounting, cash management, budgeting, forms, purchasing, job functions and maintenance of quality standards. The initial training is anticipated to last for 4 days or until the franchisor feels the franchisee is fully competent to operate an independent Franchised Business. The franchisor may also offer additional mandatory, field, operational, refresher, advanced or other training programs or seminars from time to time, addressing common problems franchisees experience or addressing new services or techniques to be utilized by the Franchised Business.

Territory: In the Agreement, the franchisor grants franchisees the right to operate a Signal 88 Security business in a defined territory or territories. A Territory is generally defined as an area having a population of approximately 100,000 people, depending on the geography and local demographics of the area. Except as provided, franchisees will receive one or more protected Territories, which will be defined by ZIP codes, county lines, or city limits and will be stated in the Franchise Agreement. The franchisor reserves the right to reduce or alter the Territory or Territories upon renewal of the franchise. If franchisees are granted a Territory or Territories, the franchisor will not locate another franchised or company-owned Signal 88 Security business within the Territory.

Term of Agreement and Renewal: The length of the initial franchise term is 3 years from the day the franchisee signs the Agreement unless terminated earlier. Renewal of the Agreement is for successive terms of 3 years each, contingent on the franchisee’s satisfaction of the Renewal Conditions described in the Agreement.

Obligations and Restrictions: The franchisor prefers owner-operated franchises and encourages franchisees to participate personally in the direct operation of the Franchised Business. The franchisor requires franchisees and/or their designated manager to devote their full-time energy and best efforts to managing the Franchised Business. The franchisor does not require franchisees to have an on-premises supervisor. However, the franchisor highly recommends on-site supervision for all franchisees who are required to maintain a physical office site. Franchisees may sell only services the franchisor approves. Franchisees may not sell armed security services, unless the franchisor expressly approves such services in writing and franchisees fulfill any conditions the franchisor may impose upon such services.

Estimated Number of Units: 130

Investment Tables:
Initial Investment
Name of Fee Low High
Initial Franchise Fee $40,500 $150,000
License $500 $5,850
Vehicle $750 $35,000
Equipment $0 $8,000
Transportation of Vehicle $300 $1,500
Tax, Title, & License Fees $500 $3,500
Insurance $3,800 $6,000
Workers’ Compensation Insurance $150 $800
Training $1,000 $2,250
Wages $10,000 $10,000
Local Advertising $500 $500
Additional Funds Operating Capital (combined w/ Wages)—first 90 days $15,000 $45,000
ESTIMATED TOTAL $73,000 $268,400
Other Fees
Type of Fee Amount
Royalty Fee 4% of Gross Revenues during the previous month.
Royalty Fee for Security Business Conversions Only 2% of Gross Revenues during the previous month.
Administrative Fee 2% of Gross Revenues during the previous month.
Franchise Growth Support Fee 2% of Gross Revenues during the previous month.
Technology Fee 1% of Gross Revenues during the previous month.
Services Package Fee $250 per month.
Finder’s Fee 2% of Gross Monthly Revenues derived from contract obtained by the franchisor or its affiliates, as determined exclusively by the franchisor.
Additional Training and Expenses N/A
Transfer Fee The greater of $5,000 per 100,000 people in the Territory plus actual expenses, or 20% of sales price.
Audit Actual Expenses of audit if audit reveals understatement of Gross Revenues by 5% or more, or any misrepresentation.
Renewal Fee None if sales goals are met; otherwise $0.20 per capita in the Territory.
Late Charge Interest at 25% APR or highest rate allowed by law on outstanding overdue amounts.
Service Fee (Failure to Cure Default) $250 per day, plus expenses.
Service Fee (Incapacity or Death of Franchisee) $200 per day, plus expenses.

The above information has been taken from the FDD of Signal 88 Security. Year of FDD: 2016

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