Any FastSigns franchise owners?

[Gino]

I was told I need to treat and budget for FASTSIGNS as another employee. If you don't take advantage of what they have to offer you won't be as successful as those that do utilize them for all they have to offer.

So just this week I received two jobs just because I'm a FASTSIGNS. We have nationwide recognition and tons of big companies deal with us.

I do agree, we received training to print stickers and give estimates not much more. There is so much to learn as we all know, but this is where all the other FASTSIGNS owners come in! Any one of them will bend over backwards for me! And FASTSIGNS has tech people with years of experience to help point us in the right direction. For example just last month I had a customer wanting to know more about digital menu boards for his bagel company, I sent Wayne Rasor an email at corporate and he sent me a couple of links to some software and hardware on the FASTSIGNS site and it was exactly what I was looking for. I also gave him a call to discuss the different options and he had all the answers! Do you have a Wayne Rasor to call about digital signage?

Also for me, just having the FASTSIGNS name made my life easier. Doc Zoom's signs doesn't have national recognition, nor has any advertising on CNN, Fox, MSNBC, etc. I like the professional image FASTSIGNS gives me!

I was skeptical and had the same reservations as most do. Mark Jameson invited me to the FASTSIGNS convention and I asked probably 100 franchisee's if they could do it over if they would choose FASTSIGNS and every single one of them said YES!
Just being at the awards banquet and seeing all of the FASTSIGNS centers that do 1 million, 2 million, 3 million.....7 million a year in sales says a lot!
Like any business it takes hard WORK! This isn't a get rich quick scheme but if you do what they teach you to do...you WILL be successful! They do care about your business and they do want you to succeed!

If your interested contact Mark Jameson at corporate to learn more 314-226-3000
Or you can call me and I would be happy to talk with you!
Greg 406-459-5531

It's kinda the same at any convention..... it's nothing more than rah - rah - rah - pat on the back, you can do it, man.

FASTSIGNS

INVESTMENT: $150,000|INDUSTRY: BUSINESS SERVICES
FASTSIGNS is the leader and ranked # 1 by number of units in North America, verified by third party sources such as Entrepreneur, Franchise Business Review and Franchise Research Institute. This provides us great buying power with key suppliers and vendors, thus reducing franchisees’ costs and increasing their profit margins. In addition, we are the only franchise in the sign & graphics category with a $7 million national advertising fund focused on national television ads, SEO and PPC to drive customers to franchisees’ centers.

Really...... treat it like any other employee ?? what business other than joining a franchise do you know of, where you pre-pay an employee $150,000 to start and then continue to pay all kinds of fees and incentives ??

There are 1,000s of Wayne's around. You have ONE person to call, while we have many more than that and probably know more in depth details in addition.

No denying it.... for someone who has no aim, this is a pretty easy deal to follow, if you follow it closely. I just have seen too many go out before really making anything. Maybe it's the area, maybe it's the individuals. We do more work for various franchises than I bet your chums do.

 

[TimToad]

So, I have a fairly obvious question. Being a person who spent a lot of time searching for a sign business to purchase in the last couple years before settling on the one we bought, I noticed one recurring thing.

No matter where I looked, no matter what business brokerage I looked under, no matter what the circumstances were, the absolute most frequent sign ( or any other type of business for that matter ) businesses for sale are franchises.

If these things are the best thing since sliced bread and all it takes is absorbing the training, working hard (which we Americans know plenty about) and following the business model, why do so many people bail on them and are trying to sell them?

 

[player]

Give me $150K and $3K a month and I will get answers to any questions you may have.

 

[shoresigns]

So, I have a fairly obvious question. Being a person who spent a lot of time searching for a sign business to purchase in the last couple years before settling on the one we bought, I noticed one recurring thing.

No matter where I looked, no matter what business brokerage I looked under, no matter what the circumstances were, the absolute most frequent sign ( or any other type of business for that matter ) businesses for sale are franchises.

If these things are the best thing since sliced bread and all it takes is absorbing the training, working hard (which we Americans know plenty about) and following the business model, why do so many people bail on them and are trying to sell them?

Just my hypothesis, but maybe it's because there are many people who want to start their own business but aren't quite motivated, ambitious or savvy enough to be successful, and those people are the ones who have a tendency to go for franchises. The franchises tell them it's an "easy" way to start your own business and become independent, right? The flip side is probably also true. The people who are business savvy and destined for success may tend to prefer to start independently on their own, without a franchise.

 

[TimToad]

shoresigns, I think you nailed it on the head.

With 35 years of experience and a burning love for the craft of quality signmaking, the thought even considering a franchise was out of the question.

Being fiercely independent, incredibly hard working and self-made also contributed to ignoring the "get rich quick and easy" messages and impulses the franchise merchants cast out there.

 

[NateF]

So, I have a fairly obvious question. Being a person who spent a lot of time searching for a sign business to purchase in the last couple years before settling on the one we bought, I noticed one recurring thing.

No matter where I looked, no matter what business brokerage I looked under, no matter what the circumstances were, the absolute most frequent sign ( or any other type of business for that matter ) businesses for sale are franchises.

If these things are the best thing since sliced bread and all it takes is absorbing the training, working hard (which we Americans know plenty about) and following the business model, why do so many people bail on them and are trying to sell them?

Part of this issue might be the fact that a mom & pop who wants to quit just shuts down the business. When a franchise owner wants to sell, the franchise will step in and help them sell it. I suspect that more privately owned shops go out of business than franchise shops. But I'll admit that turnover does seem to be higher in franchise businesses.

 

[NateF]

I might as well chime in here, since I own a franchise print shop. Though we do more traditional printing and some lighter sign work. Coming into the business with little to no experience, the franchise training was very helpful. Not that it was a ton of info, but it was a great start in the right direction. Once they helped with the initial "shove-off" (I bought an existing, but failing store), most of the work was on my shoulders. I think I would have struggled to open a shop without the help of a franchise. Now, if I had 10 years experience working in another shop, that might be a different story.

The positives are pretty obvious: Name recognition; Franchise support in marketing, operations, etc; Group buying power on products and equipment (without having to spend time negotiating); Assistance in selling the business if/when the time comes.

The negatives: They take your money. End of story.

In my situation, coming in with very little experience, I'm glad I bought a franchise. With my experience today, were I to open a new shop somewhere, I probably wouldn't go the franchise route. Remember that in any business little decisions can have huge results. A good franchise (not that they all are) will do a good job coaching you on the little things that make a big difference.

From what I've seen of them, FastSigns is one of the best sign franchises out there if you decide to go that route. The fact that a majority of their owners are happy with the way they do things says a lot - that's not the case with all franchises. But at the end of the day, success or failure depends far more on the owner than on whether or not they went with a franchise. And 8% is a lot of money, no matter how you look at it.

 

[player]

The part that hurts is it's 8% of a good month, or 8% of a month that loses money. Nothing like wondering how you are going to make payroll, and there is a blood sucker taking 8% off the top before any expenses.

 

[Mattie_BR]

Exit strategy

Besides all aspects of franchises, don't forget the exit strategy you might have for the future.

Franchises will possibly limit your options and bargain power when selling.

 

[Billct2]

Actually I think that is one of the benefits of a franchise, you can sell them, especially if they're doing well. And you have a wider base of potential buyers because they don't need experience. Try selling a small independent sign shop and see how successful you are. Even here you'll see someone ask about selling their business and a lot of the responses will be quite negative on it's value.

 

[gnemmas]

Actually I think that is one of the benefits of a franchise, you can sell them, especially if they're doing well. And you have a wider base of potential buyers because they don't need experience. Try selling a small independent sign shop and see how successful you are. Even here you'll see someone ask about selling their business and a lot of the responses will be quite negative on it's value.

This make sense due to the "system" that the franchise established, and the "books/records" that franchise demands.

An independent business has a good system set-up, can operate with-out current owner, and track records of 5 years of profit, it will be a marketable business as well.

We can learn from their operation and strive on it. Covert that 8% as our profit, put it in a SEP IRA.

 

[1leonchen]

Like any business u have to put your all in it. if u are looking to make a quick dollar maybe not. i used to work for a Fast signs in england. and i must say i worked like crazy, but i learned a lot. Its not for the faint of heart. u have to invest a lot of capital to start. but they will hold your hand to start out and give u a lot of good resources, marketing strategies. it u are a bad sales man that wont make u money. Its gonna take a lot of work and a good staff to help u. My boss was a bit arrogant so i decided to leave. but the skills they teach u is invaluable. when i left i was head of production. i could train a sign maker in two weeks. i was running 3 printers 3 cutters one router and doing designs. i was overloaded all the time and i was getting less than the base of sales. so i got pissed and left. spent a few years doing driving and got back to signs. bought my own stuff and never looked back.

Heres the draw back if u are a good sign maker and can afford to buy your own equipment then i don't think its for u. The savings provided on media is great. but thats not a good determine factor. if u built a good reputation with supplies u can always get credit. i dont keep a large inventory of cut vynil. my supplier is 20 miles away and sells material buy the foot. my supplier gives me 10 percent discount on digital media. i buy a lot a lot at once for cost savings. If u can design and run a small shop your self its not for u. if u don't like franchise fees and other stuff its not for u. i u want to control your business the way u want its not for u. if u can invest in some learning equipment and willing to take marketing and sales class then u don't need it

if u are a small shop and want to go to the next level. go ahead. if u are a dummy to sign making but you are willing to go at it with your all. go ahead. if u are not scared of franchise fees and willing to give a little for some in return. go ahead. if u want help marketing to the next level and help with bigger contracts. go ahead. if u need a good system to help u in your dreams as a big sign maker. go ahead.

If i had the money i would go with a franchise. But i decided to take the long route. plus i am competing against a ton of copy shops and offset houses. I rather buy my equipment piece by piece until i have a proper shop. I don't like franchise fees. but if i had all my equipment and wanted to get the very big accounts i would try it. but its not for me.Not every body has the dedication to produce quality. i want to move to another aspect of printing so i will not go after one. but if u have the capital. ask them to give u a experience in one of their store. nothing beats hands on experience. when i wanted to learn offset i begged every guy in my area for a little experience. no one helped me out. then a old timer got sorry for me and let me run a old Abdick press. he worked my butt off for two weeks and i over came my fear of offset. he is retiring soon and will give me his old press. just need a plate maker. saying all of that boils down its all up to u. but a preview would help your judgment a lot. ask for a shop demo at the nearest store.

 

[Doc Zoom]

Love it

So when I was looking at the FASTSIGNS franchise, I was invited to their convention.
I bet I asked over 100 owners if they had any regrets whatsoever and not ONE said they wouldn't do it again! So I just got a call from an Indian reservation up north for a huge order and guess how they found us...because we're a FASTSIGNS and our franchise marketing team put us on the map! Just landed a big job doing ADA signage at a resort 130 miles away..guess how they found us? Same deal! And I know if I ever want to sell out, my store will be worth more just because we are a known brand, number 1 in the industry!
That's my two cents worth for today! Back to work!
Greg

 

[BannerStandDeals]

Not to be a d $^k, but the search function is your friend. If you enter franchise, there's 40 pages of results. Not all are relevant, but looking at the title will help.

I remember a post last year abut the horror stories of being a franchise owner. I've never bought into the hype, considering I worked at one for 3 months. A month into it I was looking for another job. The owner was an idiot with money that "because he had the training, knew what he was doing". His girlfriend had an idea of what was going on, but the owner had final say, and they made several calls that I wouldn't have, and at the time I had been in the industry for about 8 years. (That was 17 years ago).

I just wanted to say I dig your logo. Really eye-catching.

 

[premiercolour]

For gross sales of $40,000/mo, 8% amounted to $3,200 month.

Cost of goods is approx. 20%, at $8,000. It will take 40% discount of my supplies to off-set $3,200.

Can yo all shed some lights on what you pay for 3M IJ35, 180, latex inks, .040 18x24" aluminums?

Oh, how about that wages, CA States taxes 9%, Federal taxes, worker's com, property insurance, health insurance, employee taxes. And some businesses are very comfortable staying under $1.00 ($0.856) per square feet here in S. California - Retail, no minimum purchase. Everybody is happy. Lesser work. How good is that?

 

[spectrum maine]

The Fastsign/signarama Auctions always have lightly used equipment.

 

[CanuckSigns]

So when I was looking at the FASTSIGNS franchise, I was invited to their convention.
I bet I asked over 100 owners if they had any regrets whatsoever and not ONE said they wouldn't do it again! So I just got a call from an Indian reservation up north for a huge order and guess how they found us...because we're a FASTSIGNS and our franchise marketing team put us on the map! Just landed a big job doing ADA signage at a resort 130 miles away..guess how they found us? Same deal! And I know if I ever want to sell out, my store will be worth more just because we are a known brand, number 1 in the industry!
That's my two cents worth for today! Back to work!
Greg

Not to poke a hole in your theory, but the fast sign owners who are willing to go to a fastsigns convention, are going to be the ones who really drank the kool-aid, not likley to get a lot of negative reviews there...

 

[Gino]

Not to poke a hole in your theory, but the fast sign owners who are willing to go to a fastsigns convention, are going to be the ones who really drank the kool-aid, not likley to get a lot of negative reviews there...

It's just like going anywhere with your peers. The losers never show up. When you go to your class reunion...... who are the people who show up. Only the ones who have become successful to a degree and the old busybodies.

 

[Doc Zoom]

Yup

Yup, they are the success stories, that's why they go to the conventions, they're driven, just like the success story this franchise owner is living right now. I wouldn't change a thing. (Maybe because I just landed a $20K plus job an hour ago because of FASTSIGNS!)
I'm not knocking successful privately owned sign stores, I really respect you guys for your knowledge and experience, unfortunately I didn't get the privilege of learning from one so a franchise just made sense!

 

[Rick]

Oh, how about that wages, CA States taxes 9%, Federal taxes, worker's com, property insurance, health insurance, employee taxes. And some businesses are very comfortable staying under $1.00 ($0.856) per square feet here in S. California - Retail, no minimum purchase. Everybody is happy. Lesser work. How good is that?

Don't forget a CA contractors license, you need one for non-electrical too

I was at a chamber event where I meet some smart-@ss Signarama franchisee... was asking if he was interested in bidding on a job. He pulls out his C-45 Electrical Contractors license and says "Got one of these?" I responded "Wow, how long have you been in the sign business" he said 5 years... He got his license fraudulently... and he figured out where I was going with the conversation. I worked at a Fastsigns and that place was a mess. Not because it was a Fastsign, but because these people were idiots.

I think a driven person with no experience can make a go of it, though I imagine it's a lot harder where contractors licenses are required.