Risk Score
Pending analysis
Investment Range
$109,182 - $355,709
Franchise Fee
$29,500
Total US Locations
390
Business Summary
Signarama operates full-service retail sign centers, producing, fabricating, installing, and selling various types of signs, including magnetic signs, vehicle lettering, banners, posters, digital signage, and electric signs. Signarama centers cater primarily to businesses, industrial parks, retail centers, and large corporations. The business utilizes proprietary trademarks, trade names, and proven procedures for design, manufacturing, promotion, and marketing.
Corporate History
Signarama was founded in 1986 when Roy Titus and his son, Ray Titus, opened the very first retail store under the name "Speedy Sign*A*Rama, USA". The company began franchising in late 1987. Over time, the brand underwent name modifications, changing its trademark from "Speedy Sign*A*Rama, USA" to "Sign*A*Rama" in 1994, and then to "Signarama" in 2012, though its corporate name remains "Sign*A*Rama Inc." In 2018, Ray Titus appointed his son, A.J. Titus, as President of the brand. Signarama has since grown to operate 680 stores across 21 countries, having sold its original corporately owned stores as franchises.
Financial Overview
Investment Range
$109,182 - $355,709
Franchise Fee (Low)
$29,500
Franchise Fee (High)
$49,500
Royalty %
6%
Marketing %
1%
Equipment Costs (Low)
$167,564
Equipment Costs (High)
$233,670
Working Capital
$47,250
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Signarama's management believes the company can continue its operations as a going concern for at least the next 12 months. The company maintains a healthy working capital position, with total current assets significantly exceeding total current liabilities. Signarama also reports compliance with all debt service coverage ratios for its mortgage notes payable. However, the company has experienced a decreasing trend in net income, from $2,576,426 in 2022 to $759,856 in 2024.
Financing Details
Signarama does not offer direct or indirect financing for any initial investment expenditures other than equipment, nor for the continuing operation of its franchises. Signarama also does not guarantee any loans or leases. However, Signarama has made arrangements for equipment financing through Navitas Credit Corporation, a third-party financing company. Navitas can finance a significant portion of the equipment package, up to $167,564, plus applicable taxes. The maximum repayment term available is 60 months, with approximate monthly payments of $3,477 (subject to change). Franchisees will need to pay a security deposit of 10% or more, plus a $395 processing fee, upon signing the lease. Personal guarantees from the franchisee and their spouse are required. Signarama does not receive any compensation for referring franchisees to Navitas.
Performance Metrics
Total US Locations
390
Franchised Units
390
Corporate Units
0
Avg Square Footage
1,250
Franchising Since
1987
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
3
Litigation Summary
Signarama has been involved in three disclosed legal actions. The most recent case, filed on December 5, 2024, is a pending lawsuit by Signarama Inc. against a franchisee for failing to pay royalties and not using the proper Electronic Point of Sale (EPOS) system. Historically, in 1996, Signarama (then Speedy Sign-A-Rama, USA) entered into a consent order with the Securities Commissioner of Maryland due to allegations of selling franchises after its registration had lapsed. Signarama agreed to offer rescission to the affected franchisees (who all chose to remain in the system), implement a compliance program, and disclose the order. Further back, in 1993, the Federal Trade Commission filed a complaint against Signarama's predecessor and its executives, alleging false representations about potential sales and profitability, failure to disclose transfer fees, and making unsubstantiated earnings claims. An injunction was issued in 1998, prohibiting these practices and requiring proper disclosure and documentation of earnings claims.
Bankruptcy History
Signarama has no bankruptcy history to disclose.
Agreement Terms
Initial Term
35 years
Renewal Term
35 years
Renewal Conditions
To renew their Signarama franchise agreement, franchisees must provide written notice nine months before the initial term ends. They must be in full compliance with the existing Franchise Agreement, including having no outstanding breaches. Franchisees are required to renovate, modernize, and refurbish their premises and equipment to meet Signarama's then-current design and decor standards, and comply with all relevant statutory or regulatory requirements. A renewal fee of $15,000 or 25% of the then-current initial franchise fee (whichever is greater) is payable. Upon renewal, franchisees must sign a new franchise agreement, which may include terms and conditions that are materially different from their original agreement, and also sign releases.
Training & Support Program
Franchisor Assistance
Signarama provides extensive assistance to its franchisees both before and after opening. Pre-opening support includes helping to find a suitable location, consulting on store layout and design, and ensuring the new center meets brand standards. Signarama provides a two-week training program at its headquarters in West Palm Beach, Florida, including hotel and one daily meal, and an additional 80 hours of on-site training at the franchisee's location for initial setup and guidance. Signarama also sells and delivers the initial Equipment Package and supplies, assisting with its setup, and initiates an Internet marketing launch. Franchisees receive help locating local vendors and are provided with an Owner's Manual of Operations. Ongoing support includes continuous research and development of system improvements, annual in-person or virtual visits by staff, information on conventions and seminars, a corporate newsletter, and bulletins on sales, service, marketing, and operating procedures. Signarama also offers continual advice and technical assistance for all equipment, hardware, software, and sign-making processes via toll-free phone and the Internet, and provides access to an intranet website.
Initial Training Hours
160
Training Location
Corporate headquarters in West Palm Beach, Florida and on-site at the franchisee's location
Ongoing Support
After opening, Signarama continually researches and develops system improvements, providing details and updating the Owner's Manual of Operations. Signarama conducts at least one annual visit, either in-person or virtually, to each store to assess progress and offer assistance. Franchisees can request additional field/marketing representative aid at an agreed cost. Signarama provides information on conventions, seminars, and franchisee meetings, which franchisees are required to attend at their own expense for system updates. Franchisees also receive a digital corporate newsletter and periodic bulletins on sales, service, marketing, and business procedures. Continual advice and technical support for all equipment, hardware, software, and sign-making processes, including accounting and point-of-sale systems, is available via toll-free telephone and the Internet. Franchisees also have access to an intranet website.
Franchise Requirements
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
Full-Time
Territory Type
Non-Exclusive
Staff Count
3
Staffing Notes
Signarama requires franchisees to employ and maintain at least one full-time outside salesperson. In addition to this, Signarama currently mandates the employment of a full-time client accounts specialist and a production manager. The Signarama Center must always be under the direct, on-premises supervision of a manager who has successfully completed Signarama's training program. Franchisees are responsible for hiring, training (beyond franchisor-provided training), and supervising their own competent, conscientious, neat, and trained staff, adhering to all applicable employment laws. Signarama does not dictate who can be hired as a manager, provided they comply with laws and do not harm the brand's goodwill; however, any manager must sign a confidentiality and non-disclosure agreement.