YESCO Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$65,000 - $432,200
Franchise Fee
$25,000
Total US Locations
92
Business Summary
YESCO Franchising LLC operates a sign and lighting service and maintenance business in specific geographic areas, primarily serving other businesses. YESCO franchisees utilize the company's trademarks, copyrighted materials, operating procedures, marketing methods, proprietary service processes, customer reporting procedures, operating manuals, and custom YESCO® Software to acquire and service customer accounts. The business focuses on providing maintenance and repair services for signs and lighting, and franchisees may establish relationships with various tradespeople, such as electricians and painters, to deliver these services.
Corporate History
YESCO Franchising LLC was formed on December 20, 2010, as a Utah limited liability company. It is an affiliate of Young Electric Sign Company ("Young"), a Utah corporation, which has been involved in the sign and lighting service and maintenance business since 1920. YESCO Franchising LLC began offering and selling YESCO franchises in the United States in March 2011. In February 2012, it expanded its franchising efforts into Canada. However, in July 2020, YESCO Franchising LLC sold its Canadian franchising assets, including existing franchise agreements, to its affiliate, YESCO Canada ULC, which subsequently became the franchisor for the YESCO system in Canada. YESCO Franchising LLC continues to operate as the franchisor for the YESCO system in the United States and other regions.
Financial Overview
Investment Range
$65,000 - $432,200
Franchise Fee (Low)
$25,000
Franchise Fee (High)
$50,000
Royalty %
6%
Marketing %
2%
Equipment Costs (Low)
$1,000
Equipment Costs (High)
$205,500
Working Capital
$25,000
Audited Financials
Yes
Offers Financing
Yes
Audit Opinion
Unqualified opinion
Financial Health Notes
YESCO Franchising LLC appears to be in good financial health, as indicated by its audited financial statements. For the years ended December 31, 2024, 2023, and 2022, the company reported increasing net income and member's equity, along with positive cash flow from operating activities. Net income was $1,702,798 in 2024, $1,335,079 in 2023, and $1,135,319 in 2022. The independent auditor issued an unqualified opinion, confirming that the financial statements present fairly, in all material respects, the company's financial position and results of operations in accordance with generally accepted accounting principles. No conditions or events were identified that would raise substantial doubt about YESCO Franchising LLC's ability to continue as a going concern.
Financing Details
YESCO Franchising LLC, through its affiliate YESCO Financial Solutions LLC (YFS), offers various financing options to franchisees, subject to their financial and credit qualifications. For the initial franchise fee, franchisees can finance up to 66.67% of the cost, with interest rates typically ranging from 4% to 8% above YFS's primary lender's prime rate (currently KeyBank), over a term of 12 to 60 months. For franchisees renewing under the Standard Renewal Program, YESCO offers financing for up to 100% of the $15,000 Successor Franchise Fee, with a 3% annual interest rate over a 36-month term. Under the Early Renewal Program, franchisees can also finance 100% of their Successor Franchise Fees with no interest charged and a minimum term of 36 months. Additionally, financing is available for the purchase of trucks or working capital, with interest rates varying from 4% to 12% above the prime rate, depending on the loan's purpose, amount, and the borrower's creditworthiness. All these financing options include an origination fee of up to $350. All loans are secured by the franchisee's business assets and require personal guarantees from individuals who guarantee the Franchise Agreement. A default on any loan or the Franchise Agreement constitutes a default on the other. YESCO Franchising LLC does not guarantee franchisee notes, leases, or other obligations but mentions that YESCO® franchisees may qualify for expedited Small Business Administration (SBA) loan processing.
Performance Metrics
Total US Locations
92
Franchised Units
50
Corporate Units
42
Franchising Since
2011
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Count
1
Litigation Summary
YESCO Franchising LLC has disclosed one prior litigation action. This lawsuit was initiated in October 2015 before the Ontario Superior Court of Justice against a former franchisee and associated individuals. YESCO Franchising LLC alleged breach of contract, including failure to pay initial franchise fees and royalty fees, and sought an injunction to prevent the defendants from operating a competitive business and using YESCO's proprietary information. The defendants filed counterclaims, accusing YESCO Franchising LLC of breach of contract, bad faith, misrepresentation, and violations of Canadian franchise disclosure law. In July 2017, the court granted partial summary judgment to YESCO Franchising LLC, dismissing the misrepresentation claims. All claims between YESCO Franchising LLC and the former franchisee were resolved in September 2017. YESCO Franchising LLC's remaining claims against the other defendants were settled in August 2018, with an agreement that they would not operate a competitive business in Ontario for one year. YESCO Franchising LLC has no other litigation required to be disclosed.
Bankruptcy History
YESCO Franchising LLC has no bankruptcy history to report.
Agreement Terms
Initial Term
10 years
Renewal Term
5 years
Renewal Conditions
To renew their agreement, YESCO Franchising LLC franchisees must provide written notice between one year and 180 days before the current term expires. They must be in substantial compliance with all terms of their Franchise Agreement, including timely payment of all fees. Franchisees are required to sign YESCO Franchising LLC's then-current Successor Franchise Agreement, which may have materially different terms and conditions, including potentially higher fees and altered territory boundaries (though the territory size will not be decreased from its original grant). A $15,000 Successor Franchise Fee is due for each additional 5-year term. Additionally, franchisees and designated personnel must meet current training requirements, and all Primary Owners, Principal Operators, and other owners must execute a general release of claims. For the Early Renewal Program, franchisees must renew 120 days prior to their first franchise agreement's expiration, renew all existing agreements under the then-current Successor Franchise Agreement, pay the $15,000 fee per renewed agreement, and sign a general release.
Training & Support Program
Franchisor Assistance
YESCO Franchising LLC provides comprehensive assistance to its franchisees. Before opening, YESCO Franchising LLC assigns a territory, provides access to its confidential Manuals, adds the franchisee's contact information to its website, approves grand opening advertising, and provides initial training. During ongoing operations, YESCO Franchising LLC offers various support, including promotional materials and advertising programs, and manages the National Advertising Fund if it is established. It reviews all franchisee advertising materials and operates a National Accounts Program at its option. YESCO Franchising LLC provides sales leads that originate from its website within the franchisee's territory. Franchisees also receive ongoing training, seminars, and refresher courses, as well as updates to the Manuals, YESCO Software, and trademarks. Additional training is available upon request and approval, potentially for a fee. YESCO Franchising LLC utilizes secret shoppers to ensure service quality, provides "yesco.com" email addresses and YESCO Software, sponsors an "Achievement Reward Program" for high-performing franchisees, and reviews requests for alternative suppliers.
Initial Training Hours
192
Training Location
Salt Lake City, Utah or Las Vegas, Nevada
Ongoing Support
YESCO Franchising LLC provides ongoing support to its franchisees after they open, which includes unlimited telephone and email support following the initial training. YESCO Franchising LLC may also offer additional seminars, webinars, conventions, or continuing development programs, some of which may be mandatory for franchisees. Franchisees may be required to attend national conventions (typically 1-2 days annually in Salt Lake City, Utah or Las Vegas, Nevada) and local or regional meetings up to four times a year. While mandatory training generally has no tuition fee, franchisees are responsible for all travel, lodging, wages, and meal expenses. YESCO Franchising LLC also provides updates to its Manuals, YESCO Software, and trademarks, and may use secret shoppers to ensure service quality. The company also sponsors an "Achievement Reward Program" for high-performance franchisees.
Franchise Requirements
Ideal Candidate Profile
YESCO Franchising LLC seeks franchisees who will designate a Primary Owner with an ownership interest, responsible for overseeing the general management and operations of the business, or hiring a qualified Principal Operator. The Primary Owner must have the authority to sign contracts and successfully complete all required training. The Principal Operator, who may be the same person as the Primary Owner, must act as the general manager, actively oversee the day-to-day operations, direct service delivery, and be present at the office daily, dedicating full-time attention to the business. While knowledge of the sign and lighting trades may be helpful, it is not a requirement to operate the YESCO business.
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Hybrid
Owner Participation
Supervisory
Territory Type
Non-Exclusive
Territory Size Requirements
YESCO Franchising LLC defines its franchise territories primarily based on the number of businesses within a specific geographic area, typically aiming for approximately 10,000 businesses. In smaller markets, a territory may have a minimum of 1,000 businesses. This count is determined using 2012 U.S. Census information on businesses with paid employees, excluding categories unlikely to have signage and lighting needs such as administrative, support, waste management, agriculture, forestry, mining, and certain transportation and warehousing industries. Other factors like population, economic strength, projected growth, and existing competitors may also be considered. Territories are usually delineated by county lines, boundary streets, highways, city, county, state, and/or U.S. Post Office Zip Code boundaries.
Staffing Notes
YESCO Franchising LLC requires franchisees to designate a Principal Operator who must work full-time in the business, dedicating constant personal attention to its day-to-day operation and be present at the office daily. Franchisees are solely responsible for all aspects of employee management, including hiring, training, and complying with all labor laws. This includes providing technical and safety training to their employees to ensure they can perform their responsibilities safely and prevent injury or damage. Franchisees are also responsible for establishing a safety program, designating a safety representative, and developing an employee handbook in compliance with all federal, state, and local laws. YESCO Franchising LLC states it has no duty to provide human resources, employment, or labor law advice.