Signal Franchise Costs, Fees & FDD

Year Business Began: 2003

Franchising Since: 2008

Headquarters: Omaha, Nebraska

Estimated Number of Units: 1,465

Franchise 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. 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” (formerly Signal 88 Security). Specifically, franchisees engage in the provision of onsite and off-site surveillance, executive security services, and security consulting services for contracting clients.
Training Overview: Franchisees and the manager(s) of the franchised business must successfully complete the initial training program to the franchisor’s satisfaction before opening in order to be eligible to open their franchised business. The duration of this training will depend upon the franchisee’s experience, aptitude and progress. The initial training is anticipated to last for four days or until the franchisor feels franchisees are fully competent to operate an independent franchised business. The classroom training (32.5 hours) is at the franchisor’s office in Omaha, Nebraska and/or at other locations or means (such as online training) as the franchisor may deem appropriate. Field training (54 hours) will take place in the form of a launch in the franchise owner’s market. Online modules consist of e-learning modules hosted on Signal Performance Institute. Finally, webinar/screen share training is one-on-one training with a subject-matter expert about a single topic. 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 Granted: In the agreement, the franchisor grants franchisees the right to operate a Signal business in a defined territory or territories. Each territory will be made up of one, two, three, or more “Lots”. Each Lot will typically have a population of approximately 100,000 – 400,000 people. For franchises that are to be located within Metropolitan Statistical Areas (“MSAs”) with fewer than 250,000 people (per the most recently available U.S. Census Bureau data), franchisees may purchase a territory that includes fewer than 100,000 people in a Lot. If franchisees are granted a territory or territories, the franchisor will not locate another franchised or company-owned Signal business within the territory. The franchisor’s willingness to continue the territory/lots (as described) under the agreement depends on whether franchisees meet their minimum sales quota each year.

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 or high-risk security services, unless the franchisor expressly approves such services in writing and franchisees fulfill any conditions the franchisor may impose upon such services.

Term of Agreement and Renewal: The length of the initial franchise term is three years from the day the franchisee signs the agreement, unless terminated earlier or the franchisor grants the franchisee financing repayment terms longer than three years. Renewal of the agreement is for successive terms of three years each, contingent on the franchisee’s satisfaction of the renewal conditions described in the agreement.

Financial Assistance: The franchisor may offer franchisees financing for (a) their initial franchise fees, and (b) their ordinary, reasonable, and necessary business expenses once franchisees begin operating their franchised business. However, if franchisees obtain third-party financing, the franchisor will not guarantee all or any part of their note, lease or obligations and it will not receive any revenue from the franchisee’s placement of financing.

Estimated Initial Investment

Name of Fee	Low	High
Initial Franchisee Fee (includes lot franchise fee)	$150,000	$5,000,000 (or higher depending on territory size and/or existing revenue)
Licenses	$500	$5,850
Vehicle	$3,000	$60,000
Equipment	$0	$8,000
Transportation of Vehicle	$300	$2,000
Tax, Title, & License Fees	$500	$5,000
Insurance	$250	$3,000
Workers’ Compensation Insurance	$150	$800
Wages	$0	$75,000
Local Advertising	$0	$500
Rent	$0	$12,000
Additional Funds Operating Capital —first 90 days	$3,000	$10,000
ESTIMATED TOTAL	$157,700	$5,182,150

 
Other Fees

Type of Fee	Amount
Royalty Fee	4% of gross revenues during the previous month.
Franchise Support Fee	5% of gross revenues during the previous month.
Strategic Partner Fee	2% of gross monthly revenues derived from contract obtained directly or indirectly by efforts of the franchisor or its affiliates, as determined exclusively by the franchisor.
Additional Training and Expenses	N/A
Transfer Fee	The greater of $30,000 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.
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.
Failure to Attend Convention	Then-current registration fee, plus all associated costs and expenses. The registration fee will not exceed $5,000 per attendee.

The above information has been compiled from the FDD of Signal. Year of FDD: 2025.
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