Business to business franchises are a little different than typical franchise opportunities. Their marketing and overall business techniques vary because their target audience operates differently than the general public. With businesses, it’s all about who provides the best product for the best price, but consumers generally lean toward who grabs their attention the most.
FastSigns is a business to business franchise that sells custom signs and graphics to help their clients relay messages and information to their own customers or audience. They operate in several different countries around the world and bring their design abilities and high level of service to thousands of clients every year.
FastSigns already has a sizeable presence, both in the United States and abroad, but they are aiming even higher. With plans to expand, they are now taking applications for additional franchisees to help them operate in areas that are, so far, untouched by the FastSigns brand.
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Early Signs of Excellence
FastSigns International, Inc. was founded in 1985 as a way to provide graphic design services for businesses in need. They provide a wide variety of design needs, ranging from simplistic banners and posters to intricate fine art murals, vehicle decals, and digital signage.
It didn’t take long after its founding for FastSigns to realize that they had a strong product on their hands. To get their services to more people faster, they began selling franchise licenses in 1986 and haven’t looked back since.
Over the last 32 years, FastSigns has grown to nearly 700 locations around the world. Most of their locations are right here in the United States, but they have also reached international status, with locations in nine different countries.
To keep up with the times, FastSigns has focused a lot of their effort on staying current with the latest technologies, incorporating them into their offered products and services. For example, they added the wildly popular digital signs to their menu, allowing their customers to experience the versatility that comes with lighted, programmable signage.
Keeping up with technological advances has served FastSigns well over the years, as well as their ability to branch into previously untapped markets. With their international presence, they are able to bring their products to customers in various parts of the world, with the same level of service that customers in the U.S. have come to know and expect.
Their current plans include new locations in Spain and Malta. With those two countries being added to their service area, they are breaking even further into the European market. Currently, the only FastSigns franchises operating in Europe are located within the United Kingdom.
When FastSigns says that they are a worldwide presence, they aren’t joking. There are currently 76 franchised locations operating outside of the United States, and that number is expected to grow over the next few years. There is at least one FastSigns location on each continent, except for Africa and Antarctica.
With a growing business economy in most parts of the world, the demand for high-quality sign and design products is expected to grow dramatically. If FastSigns is able to capitalize on this increase in demand, there’s no telling how large they may grow. The outlook is good for this franchise, at least from a growth potential standpoint.
The Steps to a FastSigns Franchise
To begin the process of becoming a FastSigns franchisee, the applicant must first submit an interest form on their website. Once this form has been submitted, the applicant will be able to view the franchising brochure, which will contain more information regarding the process and what to expect from owning a FastSigns location.
The franchising team at FastSigns will review the interest form and contact the candidate to further discuss the process and get a feel for the candidate’s level of interest.
After this phone call, the candidate will be invited to fill out their online profile. This will be a great opportunity for the candidate to tell FastSigns all about themself. At this stage, the FastSigns franchise team is looking for all pertinent information, including prior experience, net worth, goals and aspirations for the new location. All of these factors will help the franchisor decide if it’s a potential good match. A franchise Development Director will also contact the candidate to discuss the profile in detail, and to ask any questions regarding the candidate’s answers.
Some of the things that FastSigns is looking for in future franchisees is prior business experience, and financial strength. Prior experience and/or interest in design and sign-making is also highly preferred.
Prior business experience is important because it will give the franchisor faith that the franchisee will do a good job running the business. It’s hard to trust the ability of a franchisee who has never successfully owned or operated a business before.
Even though FastSigns offers financing, the candidate must still meet certain financial criteria in order to be considered. FastSigns requires that each franchisee has a minimum net worth of $300,000, with at least $80,000 available in liquid form. The candidate must also have a good credit score.
Those who meet the basic requirements of the profile and conversation with the Development Director will receive a copy of the franchise disclosure document. It is very important that the applicant reads and and understands this document thoroughly, as it will outline the entirety of the franchise relationship. After the applicant has had the document for at least a few days, the franchise development team will contact them to go over any questions the applicant may have.
This is not a time to be shy. If something doesn’t make sense, the applicant needs to speak up and make sure to get clarification.
If the applicant is satisfied with the contents of the franchise disclosure document and wishes to move forward with the process, they will be set up with a nearby FastSigns franchisee to take a tour of an operational location and get a feel for what the business looks like from the inside.This is also a good time to ask an existing franchisee any questions. They will have the best perspective on what it’s like to run a FastSigns franchise.
After the tour, the candidate will be free to discuss financing options with FastSigns. Since FastSigns offers financing solutions themselves, without the use of a third party, all of the qualification process is done in house. The franchise team will go over the applicant’s financial history and determine if they are an acceptable candidate for financing. The applicant is also free to choose a third party lender, if they do not wish to finance through FastSigns.
If approved for financing, or if they are able to demonstrate that they do not need financing, the applicant will be invited to call a current franchisee for a question and answer session. This is a good opportunity to answer any questions that were not addressed on the location tour, or if the franchisee was unavailable to speak with the applicant at that time. This part of the process really helps applicants to get an inside view of the franchise relationship and to determine if FastSigns will be a good fit for them.
If it’s a good fit, the applicant will then present their business plan to the Executive Vice President of Franchise Support, Mark Jameson. At this stage, the applicant will lay out exactly what they expect to do, and what they expect to get in return, from the business, and how they plan to implement it. Since FastSigns franchises are independently owned and operated, it’s important that the new owners know how to run a business. FastSigns will not be involved in the day-to-day, so they want to see that their franchisees know what they are doing.
After the conversation with Mark Jameson, a final decision will be made regarding whether or not to award the franchise license to the candidate. If the candidate is approved, they will pay the fee, sign the paperwork, and officially be welcomed to the FastSigns team.
Total Investment
The paperwork has been signed. Now, it’s time to talk money.
The first fee associated with purchasing a FastSigns license is the license fee, itself. FastSigns sells their franchise licenses for $47,5000. This is right around the mid-range for franchise fees, making it affordable and realistic, but not a bargain price.
With this fee paid and the license in hand, it’s time to begin constructing the business. FastSigns will assist the new franchisee with the site selection process to help ensure that the new location is placed in the best possible area. With business to business franchises, or even just the kinds of businesses that customers rarely visit, the convenience of the location is not so important. What is important is having enough space to successfully operate.
FastSigns knows what kind of space is needed to run the show and can help the franchisee find a space that matches the need. From square footage, to building layout, they know what an efficient space looks like and will help the franchisee get it.
Once the space is acquired, it’s time to start filling that space with the equipment and people who will be necessary to the operation. Having the latest technology and needed equipment is important to staying competitive in the industry, so it’s crucial that the franchisee prepare for this before opening.
It’s also important that the staff that is hired is capable of performing their duties. Hiring experienced, talented individuals and giving them the FastSigns training will set the franchisee up for unlimited success. Employees who know what they are doing and who are easily trained on new techniques will be the most valuable asset to the company. Taking the time to hire the right people the first time and to train them properly is one of the most important steps the franchisee can take.
All of the preparation that is done before the location actually opens will require a lot of money. The problem is, the location is not open yet, and, therefore, not generating any income. This is why it’s important for the franchisee to have start up capital available, whether through financing or their own funds. The estimated cost to open a FastSigns location will run between $193,000 and $290,000.
Overall, the total investment for a FastSigns franchise license is fairly low. This is a good sign for interested parties who are unable to afford some of the more expensive investments out there.
FastSigns’ Expectations for the Franchisee
Because FastSigns relies heavily on their franchised locations to carry their name and keep their company in high regard, they have some high expectations for their franchisees.
Each franchised location must adhere to all operating standards as outlined by the franchisor in the franchise agreement. Failure to do so can result in disciplinary action, up to and including termination of the contract. FastSigns franchisees are the face of the company. When a customer has a poor experience at a franchised locations, they do not only think negatively of that franchisee, they attribute it to the entire FastSigns brand. For this, it is important that each location provides the same, high level of service, and that starts with the standard expectations.
In addition to running the franchise the way FastSigns wants them to run it, the franchisee also has some legal obligations to the franchisor.
One of the biggest obligations is the payment of all ongoing fees. When the franchise agreement it signed, it will outline the fee schedule associated with doing business under the FastSigns name. Most franchisors charge some form of ongoing fees, most, such as FastSigns, charge royalty and advertising fees.
FastSigns charges 6 percent of gross total sales as their royalty fee. This is how FastSigns makes their money off of each franchised location. It helps to pay for the support and assistance that the franchisor provides, as well as keeping the entire franchise operation going.
They also charge 2 percent of total sales as an advertising fee. FastSigns creates all of their own advertising campaigns, which is incredibly helpful to their franchisees. Franchisees do not have to spend any time designing or implementing advertisements in order to draw in customers. The franchisor handles all of that for them, and charges them a 2 percent fee to help pay for it.
By signing the franchise agreement, the franchisee is agreeing to stay with FastSigns for the entirety of the license period, which is 10 years. It’s important that the franchisee know how long the contract is valid for before signing, because they are responsible for that entire time period. Should the franchisee attempt to get out of the agreement before the end of the period, they could be sued by FastSigns for breach of contract.
Assuming the relationship goes well and the franchisee successfully makes it to the end of the 10-year period, as long as they are in good standing with the franchisor, they will have the opportunity to sign a renewal contract, which will be valid for an additional 10 years. A renewal fee may apply at that time, depending on FastSigns’ policy.
Jumping on the Fast Track
FastSigns has a proven track record that can’t be denied. They have been in business for over 30 years and are still going strong. It’s easy to see why so many franchisees have partnered with them.
Signs and graphics are a high-demand industry that is currently booming. It’s estimated that the industry generates around $29 billion per year, worldwide, making them an incredibly hot commodity. By opening a FastSigns franchise location, the franchisee will be able to take a piece of that revenue, and possibly even help to boost it higher.
Of course, the revenue generated by the industry doesn’t mean much to a franchisee if their location isn’t making any money. They want to see what their particular location has the potential to generate.
FastSigns is one of the leading companies in the industry. Because of that, their locations are doing a lot of business and making a lot of money. Their per-location average for yearly revenue generated is around $777,594, which is by far the highest in the industry for full service locations.
Pairing the high earning potential with the low investment cost makes for one very profitable chain. Franchisees who employ good business practices are in a good position to have continuous success for many years, and to make a lot of money off of their FastSigns location.
Those with any interest in the sign and graphics industry are highly encouraged to check out FastSigns. They are the industry leader and come with low startup costs, making them more accessible to more investors. It may not be a good fit for each investor, but those who don’t look will never know. A FastSigns franchise license could be the beginning of a very successful career.