In this exclusive Franchise Chatter FDD Talk post, you’ll learn the following:

Section I – Estimated initial investment (franchise costs) for a FASTSIGNS franchise, based on Item 7 of the company’s 2024 FDD

Section II – Initial franchise fee, royalty fee, and marketing fee for a FASTSIGNS franchise, based on Items 5 and 6 of the company’s 2024 FDD

Section III – Number of franchised and company-owned FASTSIGNS outlets at the start of the year and the end of the year for 2021, 2022, and 2023, based on Item 20 of the company’s 2024 FDD

Section IV – News updates on the FASTSIGNS franchise opportunity

Section V – Presentation and analysis of FASTSIGNS’ financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2024 FDD, including information on the:

• 2023 average, median, high, and low gross sales for the 672 FASTSIGNS Centers; the 633 Full-Service FASTSIGNS Centers; the 168 Full-Service FASTSIGNS Centers in the top quartile; the 168 Full-Service FASTSIGNS Centers in the lowest quartile; and the 27 Co-Brand FASTSIGNS Centers that were open and in continuous operation in the United States during the entire calendar year ending December 31, 2023

• 2023 average gross sales for FASTSIGNS franchise owners who (i) were in business for at least one year prior to January 1, 2023; (2) reported gross sales for each of the 12 months in 2023; and (3) advised FASTSIGNS that they employed a full-time outside sales representative during this period who was not one of the franchise principals of the Center

• average total sales generated by the 61 outside sales professionals hired by FASTSIGNS franchisees in 2021 and the 71 outside sales professionals hired by FASTSIGNS franchisees in 2022, that completed 12 consecutive months in the outside sales professional position, during their first 12 months in that position

• 2023 average gross sales, cost of goods sold, labor expenses (including franchisee principal), advertising expenses, auto expenses, facility expenses, equipment expenses, general and administrative expenses, and EBITDA for the 373 reporting FASTSIGNS Centers included in the 2023 Financial Benchmarking Survey, the 93 reporting FASTSIGNS Centers in the top 25% based on profitability, and the 94 reporting FASTSIGNS Centers in the lowest 25% based on profitability

Section VI – Key ratios, comparables, computations, and analyses for the FASTSIGNS franchise opportunity (exclusive content for Platinum subscribers)

Section I – FASTSIGNS Franchise Costs

• Initial Franchise Fee:  $49,750
• Leasehold Improvements:  $35,767 to $63,519
• Furniture and Fixtures:  $10,645 to $14,145
• Deposits:  $875 to $6,352
• Telephone and Networking:  $548 to $6,138
• Decor and Graphics:  $1,330 to $1,783
• Tools, Supplies, and Substrate Cutter:  $11,744 to $12,202
• Production Equipment:  $64,941 to $67,836
• Commercial Display, Laser Measurement Solution, and a Chromebox with Licenses:  $1,258 to $1,512
• Center Management System Computer:  $5,146 to $5,675
• Signage:  $2,202 to $7,879
• Initial Inventory:  $2,530
• Architectural/Engineering:  $0 to $4,900
• Initial Advertising:  $14,500
• Travel, Lodging, Meals, and 2 Employees’ Costs for Initial Training:  $2,110 to $3,939
• Administrative Supplies:   $583 to $1,819
• Business Licenses and Permits:  $100 to $3,395
• Insurance Deposits and Premiums (first 3 months):  $654 to $3,000
• Professional Fees:  $3,399 to $8,750
• Additional Funds:  $40,000 to $65,000
• Total Estimated FASTSIGNS Franchise Costs:  $248,083 to $344,624

Section II – FASTSIGNS’ Initial Franchise Fee, Royalty Fee, and Marketing Fee

• Initial Franchise Fee:  $49,750

• Service Fee:  3% of Gross Sales the first year. 6% of Gross Sales beginning the second year through the end of the term of the Franchise Agreement. If you are a new Center, Conversion Center, or Co-Brand Center, you will pay the greater of $1,250 or 6% of Gross Sales beginning the 13th month through the end of the term of the Franchise Agreement or the Co-Brand Franchise Agreement.

• Ad Fee:  1% of Gross Sales for the first year; 2% of Gross Sales beginning the second year through the end of the term of the Franchise Agreement

Section III – Number of Franchised and Company-Owned FASTSIGNS Outlets

Franchised

2021

• Outlets at the Start of the Year:  659
• Outlets at the End of the Year:  672
• Net Change:  +13

2022

• Outlets at the Start of the Year:  672
• Outlets at the End of the Year:  677
• Net Change:  +5

2023

• Outlets at the Start of the Year:  677
• Outlets at the End of the Year:  689
• Net Change:  +12

Company-Owned

2021

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  0
• Net Change:  0

2022

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  0
• Net Change:  0

2023

• Outlets at the Start of the Year:  0
• Outlets at the End of the Year:  0
• Net Change:  0

Section IV – News Updates on the FASTSIGNS Franchise

Section V – Financial Performance Representations (Average Revenues and/or Profits) for the FASTSIGNS Franchise (Item 19, 2024 FDD)

• On December 31, 2023, there were 775 FASTSIGNS Centers open and in operation of which 86 were international. 689 FASTSIGNS Centers were open and 672 were in continuous operation in the United States during the entire calendar year ending December 31, 2023. The analysis set forth below is based on the average yearly gross sales and median sales for those 672 FASTSIGNS Centers for 2023.

• Of the 672 FASTSIGNS Centers open and in continuous operation in the United States during the entire calendar year ending December 31, 2023, 629 FASTSIGNS Centers were “Full Service” Centers, 12 FASTSIGNS Centers were “Satellite” Centers, and 27 FASTSIGNS Centers were “Co-Brand” Centers.

• A “Full-Service” Center is the FASTSIGNS Center that the franchisor typically offers under the Franchise Disclosure Document. It includes production equipment and is a stand-alone business.

• A “Satellite” Center is a FASTSIGNS Center without any production equipment and is owned by a franchisee who also owns a Full-Service FASTSIGNS Center. The franchisor no longer offers Satellite Centers for sale.

• A “Co-Brand” Center is an existing operating complementary business that establishes and operates a FASTSIGNS Center within that business.

• The following Tables refer to “Gross Sales.” “Gross Sales” includes all revenues from the sale of any services and products at or from a FASTSIGNS Center and all other revenues of every kind and nature related to operating a FASTSIGNS Center. “Gross Sales” does not include sales or use taxes.

Part 1 – Systemwide Gross Sales – Centers Operating for the Entire 2023 Calendar Year

• The following Table provides systemwide Gross Sales for all operational FASTSIGNS Centers reporting sales for the full 12 months and the Gross Sales for Full-Service Centers.

All Centers

• Number of Centers:  672
• Average Gross Sales:  $1,068,784
• Number and Percentage of Centers That Met or Exceeded the Average:  216 (32.1%)
• Median Gross Sales:  $786,378
• High Gross Sales:  $24,754,001
• Low Gross Sales:  $29,325

Full-Service Centers Only

• Number of Centers:  633
• Average Gross Sales:  $1,094,860
• Number and Percentage of Centers That Met or Exceeded the Average:  204 (32.2%)
• Median Gross Sales:  $790,778
• High Gross Sales:  $24,754,004
• Low Gross Sales:  $29,325

Part 2 – Range of Gross Sales – Centers Operating for the Entire 2023 Calendar Year

• The following Table shows the ranges of Gross Sales for the 672 FASTSIGNS Centers operating for the entire calendar year ending 2023 and the number of FASTSIGNS Centers within each range:

• $0 to $300,000:  68 Centers
• $300,001 to $500,000:  116 Centers
• $500,001 to $1,000,000:  242 Centers
• $1,000,001 to $2,000,000:  179 Centers
• $2,000,001 to $3,000,000:  41 Centers
• $3,000,000 to $7,000,000:  22 Centers
• Over $7,000,000:  4 Centers
• Total Centers:  672 Centers

Part 2A – Range of Gross Sales – All Full-Service Centers Opened in 2022 and Operating for the Entire 2023 Calendar Year

• $0 to $300,000:  9 Centers
• $300,001 to $500,000:  3 Centers
• $500,001 to $1,000,000:  1 Center
• $1,000,001 and Over:  0 Centers
• Total Centers:  13 Centers

Part 2B – Range of Gross Sales – All Full-Service Centers Opened in 2021 and Operating for the Entire 2022 and 2023 Calendar Years

2022 Sales

• $0 to $300,000:  13 Centers
• $300,001 to $500,000:  6 Centers
• $500,001 to $1,000,000:  2 Centers
• $1,000,001 and Over:  0 Centers
• Total Centers:  21 Centers

2023 Sales

• $0 to $300,000:  7 Centers
• $300,001 to $500,000:  8 Centers
• $500,001 to $1,000,000:  5 Centers
• $1,000,001 and Over:  1 Center
• Total Centers:  21 Centers

Part 2C – Range of Gross Sales – All Full-Service Centers Opened in 2020 and Operating for the Entire 2021, 2022, and 2023 Calendar Years

2021 Sales

• $0 to $300,000:  10 Centers
• $300,001 to $500,000:  8 Centers
• $500,001 to $1,000,000:  1 Center
• $1,000,001 and Over:  0 Centers
• Total Centers:  19 Centers

2022 Sales

• $0 to $300,000:  3 Centers
• $300,001 to $500,000:  9 Centers
• $500,001 to $1,000,000:  6 Centers
• $1,000,001 and Over:  1 Center
• Total Centers:  19 Centers

2023 Sales

• $0 to $300,000:  2 Centers
• $300,001 to $500,000:  7 Centers
• $500,001 to $1,000,000:  8 Centers
• $1,000,001 and Over:  2 Centers
• Total Centers:  19 Centers

Part 3 – System-Wide Gross Sales – Top Performing and Lowest Performing Centers Operating for the Entire 2023 Calendar Year

• The following Table shows Gross Sales for the top performing and lowest performing Full-Service FASTSIGNS Centers operating for the entire calendar year 2023.

Top Quartile Full-Service Centers

• Number of Centers:  168
• Average Gross Sales:  $2,340,922
• Number and Percentage of Centers That Met or Exceeded the Average:  44 (26.2%)
• Median Gross Sales:  $1,742,213
• High Gross Sales:  $24,754,004
• Low Gross Sales:  $1,214,106

Lowest Quartile Full-Service Centers

• Number of Centers:  168
• Average Gross Sales:  $345,198
• Number and Percentage of Centers That Met or Exceeded the Average:  94 (56.0%)
• Median Gross Sales:  $359,243
• High Gross Sales:  $503,795
• Low Gross Sales:  $29,325

Part 4 – Co-Brand Centers Operating for the Entire 2023 Calendar Year

• The following Table shows Gross Sales for Co-Brand Centers operating for the entire calendar year 2023.

Co-Brand Centers

• Number of Centers:  27
• Average Gross Sales:  $689,823
• Number and Percentage of Centers That Met or Exceeded the Average:  11 (40.7%)
• Median Gross Sales:  $439,359
• High Gross Sales:  $1,987,311
• Low Gross Sales: $97,275

Part 5 – Gross Sales Study – Full-Service FASTSIGNS Centers with Outside Sales Professionals

• Having a full-time outside sales professional has become an essential element of the FASTSIGNS business model.

• The average gross sales of FASTSIGNS Centers in the US with an outside sales professional during the 12-month period from January 1, 2023 to December 31, 2023 was $1,647,661 for franchise principals who (i) were in business for at least one year prior to January 1, 2023; (2) reported Gross Sales for each of the 12 months in 2023; and (3) advised FASTSIGNS that they employed a full-time outside sales professional during the entire period who was not one of the franchise principals of the Center.

• The number of Centers who met these criteria in 2023, and were used in this study, was 232 which represented 36.7% of the Full-Service Centers open and operational in the US for the full year in 2023.

Part 6 – Performance of New Outside Sales Professionals in Their First 12 Months in the Role

• There were 61 outside sales professionals hired by FASTSIGNS franchisees in 2021 that completed 12 consecutive months in the outside sales professional position. The average total Gross Sales generated by the 61 outside sales professionals in their first 12 months in the position was $321,529. The median Gross Sales for the same group was $295,397

• There were 71 outside sales professionals hired by our franchisees in 2022 that completed 12 consecutive months in the outside sales professional position. The average total Gross Sales generated by the 71 outside sales professionals in their first 12 months in the position was $399,751. The median Gross Sales for the same group was $279,627.

Hired in 2021

• Outside Sales Professionals Hired:  61
• Average Total Sales:  $321,529
• Median Total Sales:  $295,397
• High Total Sales:  $1,177,692
• Low Total Sales:  $48,090
• Number of Outside Sales Professionals That Met or Exceeded Average Total Sales:  26

Hired in 2022

• Outside Sales Professionals Hired:  71
• Average Total Sales:  $399,751
• Median Total Sales:  $279,627
• High Total Sales:  $4,145,040
• Low Total Sales:  $22,655
• Number of Outside Sales Professionals That Met or Exceeded Average Total Sales:  18

Part 7 – Results of 2023 Financial Benchmark Survey

• The expense figures were extracted from the 2023 financial statements submitted by the FASTSIGNS franchisees included in the 2023 Financial Benchmarking Survey.

• With respect to the 373 FASTSIGNS Centers included in the compilation of the expense figures, the expense data relates to operations conducted during calendar year 2023.

• The expense percentages for the various expense items provided by each reporting FASTSIGNS Center reflect that FASTSIGNS Center’s expenses as a percentage of its Gross Sales.

• The following expenses represent the major expense items for a FASTSIGNS Center and should not be considered the only expenses that a FASTSIGNS Center will incur.

2023 Year-End Average P&L (373 FASTSIGNS Centers Reporting)

Gross Sales:  $1,201,287 (100.0%)

Expenses:

• Costs of Goods Sold:  $328,979 (27.4%)
• Labor Expenses (including Franchisee Principal):  $424,186 (35.3%)
• Advertising Expenses:  $34,799 (2.9%)
• Auto Expenses:  $17,379 (1.4%)
• Facility Expenses:  $66,196 (5.5%)
• Equipment Expenses:  $8,900 (0.7%)
• General and Administrative Expenses:  $166,986 (13.9%)

EBITDA:  $153,862 (12.8%)

Franchisee Principal’s Salary from Labor Expenses:  $95,125 (7.9%)

Total Franchisee Principal’s Benefit:  $249,077 (20.7%)

2023 Year-End Average P&L (Top 25% Based on Profitability – 93 FASTSIGNS Centers)

Gross Sales:  $1,662,040 (100.0)

Expenses:

• Costs of Goods Sold:  $422,439 (25.4%)
• Labor Expenses (including Franchisee Principal):  $567,499 (34.1%)
• Advertising Expenses:  $37,764 (2.3%)
• Auto Expenses:  $18,081 (1.1%)
• Facility Expenses:  $69,291 (4.2%)
• Equipment Expenses:  $7,071 (0.4%)
• General and Administrative Expenses:  $195,657 (11.8%)

EBITDA:  $344,239 (20.7%)

Franchisee Principal’s Salary from Labor Expenses:  $187,444 (11.3%)

Total Franchisee Principal’s Benefit:  $531,681 (32.0%)

2023 Year-End Average P&L (Lowest 25% Based on Profitability – 94 FASTSIGNS Centers)

Gross Sales:  $732,977 (100.0%)

Expenses:

• Costs of Goods Sold:  $218,190 (29.8%)
• Labor Expenses (including Franchisee Principal):  $289,802 (39.5%)
• Advertising Expenses:  $25,554 (3.5%)
• Auto Expenses:  $14,030 (1.9%)
• Facility Expenses:  $59,119 (8.1%)
• Equipment Expenses:  $7,479 (1.0%)
• General and Administrative Expenses:  $129,092 (17.6%)

EBITDA:  $(10,289) (-1.4%)

Franchisee Principal’s Salary from Labor Expenses:  $32,798 (4.5%)

Total Franchisee Principal’s Benefit:  $22,506 (3.1%)

Section VI – FASTSIGNS Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️