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Frequently Asked Questions
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IS THERE A NATIONAL ADVERTISING FUND AND HOW DO I BENEFIT FROM IT? Yes. The monthly fee is 2% of gross sales. The National Advertising Council is a board made up of FASTSIGNS franchise owners. The entity manages and implements a wide array of marketing initiatives designed to build the FASTSIGNS brand name. The National Accounts Program is also a part of the National Advertising Council. This program is specifically focused on large, national users of signs and graphics. Unique, customized solutions are provided for clients, and then produced and delivered by local FASTSIGNS owners. The result is often incremental sales and profits to your store.
WILL I HAVE THE OPPORTUNITY TO SPEAK TO EXISTING FRANCHISE OWNERS? Yes. When you receive the FDD, you will also receive a list of all of our existing owners and their phone numbers. You are encouraged to speak with several of our franchise owners as part of your due diligence.
ARE FASTSIGNS FRANCHISEES HAPPY? A recent survey suggests “absolutely“! For the third year in a row, Franchise Business Review (FBR) has awarded FASTSIGNS #1 distinction in business service franchisees, in its annual Franchisee Satisfaction Survey. Moreover, in 2008, FASTSIGNS was also ranked #3 overall in the Top 50 by FBR (www.fbr50.com).
DOES FASTSIGNS OFFER FINANCING? FASTSIGNS does not provide direct financing. However, we have aligned ourselves with some of the largest SBA and non-SBA lenders in the industry. FASTSIGNS will help you choose the right lender for you and assist with the loan approval process. FASTSIGNS is also an approved Franchisor for SBA financing (see www.franchisoregistry.com).
HOW LONG IS THE FRANCHISE AGREEMENT? CAN I RENEW IT? The current initial term of the Franchise Agreement is 20 years. At the end of 20 years, a renewal term may be available. Each renewal term is 10 years.
HOW MUCH CAN I EXPECT TO EARN? Your earnings capability will depend on a number of factors—such as your location, the amount of time you spend in the business, your sales acumen, as well as the market conditions. Naturally, as in any business venture there is no guarantee of your success or profitability. We do, however, give you the benefit of a well-organized and proven concept, refined by our many years of experience. Our FDD provides an earnings claim for your review.
HOW MUCH ARE THE ONGOING FEES? There is a 6% royalty based on monthly gross sales and a 2% National Advertising Fund fee, also based on monthly gross sales.
OTHER THAN THE ROYALTY AND NATIONAL ADVERTISING FUND FEES, ARE THERE ANY OTHER “HIDDEN” FEES THAT I WOULD PAY? No. There may be fees associated with annual conventions or additional trainings. Any such fees are clearly identified in the FDD and our Operations Manuals.
CAN I BE A PASSIVE OWNER/INVESTOR OF A FASTSIGNS? Not initially. We have found it is very important for you to be involved in the business full time. Of course, as your business matures and your staff develops, you may have great flexibility in your operational role.
DOES FASTSIGNS ASSIST ME IN FINDING A LOCATION AND NEGOTIATING A LEASE? Yes. FASTSIGNS provides extensive site selection support and analysis. This includes market and demographic analysis, broker coordination, site survey trip, site evaluations, lease review and negotiation assistance, architectural plans, contractor bid review and coordination, etc.
DOES FASTSIGNS HAVE EXCLUSIVE TERRITORIES? Yes. FASTSIGNS knows it is important to recognize established client relationships. As such, we award territories with a minimum of 4,000 businesses. The territory will be defined by Postal Zip Codes. Once we have agreed on the territory for your store, you have the peace of mind, that without significant change to the demographics in your area, FASTSIGNS cannot award another FASTSIGNS location in your territory for the term of your Franchise Agreement.
HOW LONG AFTER I SIGN A FRANCHISE AGREEMENT, BEFORE MY NEW FASTSIGNS WILL BE OPEN? It depends on various factors (lease negotiations, permitting, financing, New Owner Training completion, build out time, etc.) but on average you will be open approximately five months after signing a Franchise Agreement.
DOES FASTSIGNS REQUIRE THAT I HAVE A GRAPHICS OR TECHNOLOGY BACKGROUND? No. On the contrary, we would prefer individuals with sales, marketing and operations backgrounds. The FASTSIGNS business is a sales and marketing business. Emphasis on developing client relationships and outstanding customer service is a key ingredient to achieving positive results with a FASTSIGNS center.
HOW MUCH IS THE INITIAL FRANCHISE FEE AND WHAT DO I GET FOR IT? The initial franchise fee is $27,500 and includes the following:
- Use of one of the most widely recognized brand names in the franchise sign industry
- 3 weeks of initial New Owner Training
- Up to 2 weeks of on-site Grand Opening Training
- Extensive first year marketing strategy developed specifically for your market
- FASTSIGNS® design and construction package
- Site selection and lease negotiation assistance
- Complete Operations and Marketing systems
- Exclusive territory as described in the FDD
- Complete set of Operations Manuals
- And More...
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