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Sign-A-Rama 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 retail 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 the franchisee’s 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 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 the extensive training program held at 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 with the franchisee at a cost of $225 per person attending and the franchisee will be responsible for their travel, lodging and meals expense. Hours of on-the-job training are hands-on and experiential. All of the training hours are conducted in the franchisor’s training facility in West Palm Beach, FL. Additional training is provided by field representatives during the initial setup of your store. The franchisor will visit the franchisee in his or her store at least once each year in order to ascertain the progress of the Sign-A-Rama Center and to assist. At the time of this writing, the franchisor provides one regional SAR meeting per year.

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, if requirements are met.

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 must also maintain a competent, conscientious, neat and trained staff where applicable. The franchisee may offer and sell only goods that franchisor has approved but there is no obligation to provide all of the services and goods authorized by the franchisor.

Estimated Number of Units: 961

Investment Tables:
Initial Investment
Name of Fee Low High
Initial Franchise Fee $49,500 $49,500
Travel and Living Expenses while at Training School ($15 to $35 per day) $210 $490
Real Estate (Rental payments vary from location to location) $4,500 $4,500
Real Estate Service Charge $0 $2,500
Leasehold Improvements $0 $10,000
Equipment Package : If leased $4,088 $4,088
Equipment Package: If purchased $145,280 $145,280
Insurance $1,000 $2,000
Security Deposit/ Utility Deposits/ Licenses $0 $3,000
Additional Funds (0-6 months) $35,000 $55,000
Estimated Totals:
If Equipment Package is Leased
If Equipment Package is Purchased

$94,298
$235,490

$131,078
$272,270
Other Fees
Type of Fee Amount
Royalty 6% of total gross sales up to $600,000 and 4% of gross sales from $600,001 to $1,000,000
Transfer/Training $29,500 or then current fee.
Marketing Fund Fee $500 per month or then current fee.
Point of Sale Software License Fee $139 per month or then current fee.
Employee Training Fee $225 or then current fee per person attending training plus travel, hotel and meal expenses.
Renewal Fee $1,500
Audit Cost of audit to $300 per day plus 10% interest on underpayment.

The above information has been taken from the FDD of Sign-A-Rama. Year of FDD: 2016

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