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SIGNARAMA Franchise Cost & Fees

Date of Incorporation: 1986

Franchising Since: 1987    

Headquarters: West Palm Beach, Florida

Business Description: Sign-A-Rama (SAR) centers produce, fabricate, install and/or sell magnetic signs, boat and vehicle lettering, paper and laminated signs, banners and posters, show cards, vinyl lettering, menu boards, reflective signs, name plates, interior/exterior signage, window lettering, mobile signs, retail displays, store fronts, trade show graphics, architectural and directional markings, wood signs, engraved signs, Americans With Disabilities Act (ADA) signage and neon signs. The customer base will primarily be businesses, industrial parks, retail centers, large corporations, etc.

Franchise Offer: SAR offers to the franchisee the right to own and operate a full service SAR sign center. In the franchisee’s center he or she will use the franchisor’s trademark, trade name, proven and sophisticated procedures and trade secrets.

Financial Assistance: The franchisor is not obligated to offer directly or indirectly any arrangements for financing of the initial investment, the equipment or the continuing operation of the franchise. The franchisor does not guarantee note, lease or any other obligation. The franchisor has arranged for equipment leasing through Omni Leasing Company. If the franchisee chooses to lease through Omni, the franchisee can finance the total purchase price ($121,487) of the equipment package. The term of the lease is 60 months. Omni requires the franchisee to personally guarantee the lease and will retain a security interest in the equipment.

Training and Assistance: Prior to opening the franchisee’s Sign-A-Rama Center, he or she must attend and complete to the franchisor’s satisfaction their extensive training program held at their corporate headquarters. If the franchisee purchased a new store, the training fees are covered in the franchise fee. If the franchisee purchased an existing store, then the training fee was either paid by the seller or by the franchisee out of the proceeds of the sale. The franchisor will pay for one round trip airfare to West Palm Beach, hotel and one daily meal for the duration of the two-week training period. An additional trainee may attend the training program. However, the travel and meals will be at the franchisee’s expense.

Territory: The franchisee will not receive an exclusive territory. The franchisee may face competition from other the franchisees, from outlets that the franchisor owns, or from other channels of distribution or competitive brands.

Term of Agreement and Renewal: The length of the franchise term is 35 Years. Renewal or extension of the term is 35 years.

Obligations and Restrictions: The Sign-A-Rama Center must at all times be under the direct on premises supervision of the franchisee or a manager who has completed the training program. The franchisee may offer and sell only goods that franchisor has approved.
Estimated Number of Units:  800
Investment Tables:

Initial Investment:

Name of Fee Low High
Initial Franchise Fee $42,500 ($22,500 if a military veteran) $42,500 ($22,500 if a military veteran)
Travel and Living expenses while at training school $210  ($15 per day) $490 ($35 per day)
Real Estate Rental payments vary from location to location  Rental payments vary from location to location
Equipment Package : If lease
                                   If purchased
EPOS Data Conversion $0 $200
Insurance $750 $2000
Security Deposit/ Utility Deposits/ Licenses $0 $3,000
Additional Funds (0-6 months) $35,000 $35,000
Equipment Package : If leased
                                   If purchased



Ongoing Fees:

Type of Fee Amount
Royalty 6% of total gross sales subject to the Royalty Incentive Program.
Transfer/Training $24,500 or then current fee.
Marketing Fund Fee $150 per month or then current fee
Email Address Fee $1 per month per address or then current fee
Shop SIGNARAMA.COM Maintenance Fee $100 per month or then current fee
Point of Sale Software License Fee $99 per month or then current fee
Renewal Fee $1,500
Audit Cost of audit to $300 per day plus 10% interest on underpayment.

Date of FDD: 2011


The above information has been compiled from the FDD of SIGNARAMA along with online sources.
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