WANT TO BUY A FRANCHISE?

HERE ARE ANSWERS TO SOME FAQ’S:

If you want to buy a franchise, or are interested in converting your current signage or print business to a Signarama franchise, you may have some queries and concerns. Here are answers to some of the most frequently asked questions received by our team before an aspiring franchise owner signs with us:

Two people in business suits shaking hands

01. WILL YOU SUPPLY ME WITH A BREAKDOWN OF ALL COSTS WHEN I BUY A FRANCHISE?

Yes, our franchising team will assist you with a breakdown of all costs you stand to incur to ensure that you are able to budget effectively.

02. HOW MUCH WORKING CAPITAL WILL I NEED, AND WHAT HELP CAN YOU GIVE ME IN PREPARING PROPER PROJECTIONS?

For your working capital, to open a new store, you should budget around R1 195 000. This includes your franchising fee (R285 000), training costs (R55 000) and equipment expenses (R805 000).

To convert your current business, you can expect to pay a franchising fee of R185 000, and the rebranding of your store will need to be done on your own account. The assistance Signarama provides when you decide to buy a franchise is unparalleled.

03. WILL YOU ASSIST ME WITH RAISING FINANCE, AND WHAT FORM WILL THIS ASSISTANCE TAKE?

Yes, we do offer some financing options for aspiring Signarama franchisees. This makes the decision to buy a franchise an easy one. Talk to our team about the process and complete your application.

04. IN YOUR EXPERIENCE, HOW LONG WILL IT TAKE TO START TRADING FROM THE TIME I SIGN THE CONTRACT?

Once the franchise agreement is signed, premises have been identified, and finance is in place, it takes us 6 weeks to complete your training and carry out the build out and installation of your franchise.

05. WHAT WILL MY TRAINING CONSIST OF, HOW LONG WILL IT LAST AND ARE ALL TRAINING COSTS INCLUDED IN THE UP-FRONT FRANCHISE FEE?

We offer an extensive training programme for all Signarama franchisees. The training programme is 5 weeks long and will equip you with all the tools and skills required to manage your own store effectively.

Weeks 1-2 will take place at our franchise office in Lonehill, Johannesburg, and consists of a theoretical introduction to get you ready for your business venture. Week 3 consists of mentorship training. During this week you will work alongside an established Signarama franchisee to apply your new-found knowledge. Weeks 4-5 consist of in-store training of the technical and marketing aspects required to ensure that you are ready to fully set up your own Signarama store.

06. WHAT HELP AND GUIDANCE DO YOU OFFER IN SITE SELECTION AND THE SETTING-UP OF THE BUSINESS?

Our franchise team, along with selected real estate experts, offer assistance with site selection and lease negotiations to ensure that you are set up for success from the start.

07. DO YOU ASSIST WITH INTRODUCTION TO EXISTING CUSTOMERS (IN THE CASE OF A BUSINESS-TO-BUSINESS FRANCHISE) AND/OR AN OPENING PROMOTION (IN THE CASE OF A RETAIL FRANCHISE)?

We do. We provide comprehensive marketing assistance, from your store’s grand opening and beyond. Every franchise owner can expect assistance from our marketing team to create awareness both locally and abroad.

08. WHAT IS THE EXPECTED BREAK-EVEN FOR THE SIZE OF UNIT I WILL OPEN AND HOW LONG SHOULD IT TAKE ME TO REACH THIS LEVEL OF SALES?

Signarama franchises typically break-even between month 6 to 8 of operation. Franchisees who adhere to the Signarama system typically break-even in this timeframe.

09. WHAT IS THE LEVEL OF ONGOING FRANCHISE FEES, HOW ARE THEY CALCULATED AND WHEN ARE THEY PAYABLE?

When opening a new Signarama franchise, franchise owners can expect to pay 6% Royalty fees (capped), along with a R3 500 marketing fee (plus 0,5%), per month.

When converting your current business to a Signarama franchise, you can expect to pay R6 850 per month in Royalty fees, along with R3 500 marketing fees (plus 0,5%).

10. AM I EXPECTED TO CONTRIBUTE TO ANY OTHER COSTS, FOR EXAMPLE ADVERTISING AND PROMOTIONAL EXPENDITURE THAT YOU INCUR? IF SO, HOW ARE THEY CALCULATED AND WHEN ARE THEY PAYABLE?

Your advertising and promotional fees are included in your franchising fee.

11. AM I OBLIGED TO UNDERTAKE ADVERTISING AND PROMOTIONS OF MY OWN, AT MY OWN EXPENSE? IF SO, WHAT HELP DO YOU PROVIDE?

Franchise owners are not obliged to undertake promotions on their own, but if you are eager for your business to succeed, marketing initiatives could help you grow your client base. Your own marketing efforts are at your own expense.

12. AFTER THE BUSINESS IS UP AND RUNNING, WHAT ONGOING SUPPORT CAN I EXPECT TO RECEIVE?

As a Signarama franchise owner, you can always expect our team’s support to help you make a success of your store. For a detailed outline of what you can expect, visit Training and Support.

13. WHEN WAS THE CORE BUSINESS ESTABLISHED, AND WHEN DID YOU BEGIN TO FRANCHISE?

Signarama was established in 1986 in Farmingdale, New York. The first branch in South Africa was opened in Cape Town in 2000. Since then, our brand has grown immensely and continues to do so.

14. ARE YOU A MEMBER OF THE FRANCHISE ASSOCIATION OF SOUTHERN AFRICA (FASA)? IF NOT, WHAT ARE YOUR REASONS FOR THIS?

Yes, we are proud members of the Franchise Association of Southern Africa (FASA) and the International Franchise Association (IFA).

15. WILL YOU ISSUE ME WITH A DISCLOSURE DOCUMENT? IF SO, DOES IT CONFORM TO FASA’S REQUIREMENTS?

Yes, we will. Signarama is fully CPA compliant, and we follow FASA’s requirements.

16. IF YOU DO NOT ISSUE A FORMAL DISCLOSURE DOCUMENT, MAY I HAVE A FULL LIST OF ALL FRANCHISEES WITHIN THE NETWORK AND PERMISSION TO CONTACT THEM?

We encourage Signarama franchisees to make contact and connect with one another as we believe that this helps franchise owners to solve certain issues they are experiencing and may help them to find new ideas to market their store, improve production etc. So, yes, you may have a list of all franchisees within the Signarama network as well as permission to contact them should you wish to do so.

17. WILL I BE PERMITTED TO SEE THE OPERATIONS AND PROCEDURES MANUAL BEFORE I SIGN THE FRANCHISE AGREEMENT?

Yes, we are transparent about our franchises’ operations and procedures guidelines, and you can therefore have a look at it before signing the franchise agreement.

18. HOW THOROUGHLY DO YOU VET PROSPECTIVE FRANCHISEES?

All prospective franchisees take part in a one on one interview with the Franchisor. Criminal and credit checks are also carried out to determine suitability. As part of the vetting process, any prospective franchisee will meet with existing franchisees who in turn provide feedback to the franchisor.

19. ARE YOU CURRENTLY OPERATING IN AREAS WITH SIMILAR DEMOGRAPHICS AS MY PROPOSED TERRITORY? IF SO, CAN I SEE OPERATING RESULTS OF ONE SUCH FRANCHISEE, WITH FRANCHISEE’S IDENTITY BLOCKED OUT IF DESIRED?

Yes, we have several franchises operating in a similar demographic. Once you have received a copy of the Disclosure Document, and once we have received a fully refundable deposit from you, we provide a full financial disclosure with operating results from existing franchises.

20. DOES YOUR NETWORK OPERATE A FRANCHISEE REPRESENTATIVE COUNCIL OR SIMILAR BODY? IF SO, MAY I MEET WITH ITS CHAIRMAN?

Yes, we have several franchisee lead committees (marketing, purchasing, steering). We truly believe that franchisee involvement in decision making has been a key factor in our success. You will be welcome to speak to any Signarama franchisee as part of your evaluation of the franchise.

21. HOW DO YOU HANDLE GRIEVANCES WITH EXISTING FRANCHISEES?

Face to face engagement has been our most successful means for dealing with grievances. We do not believe in resolving these ‘at arm’s length’.

22. WHO ARE THE BUSINESS’S MAIN COMPETITORS, WHAT ARE THEIR RESPECTIVE STRENGTHS AND WEAKNESSES AND HOW DO YOU PROPOSE I OUTSMART THEM WITHIN MY TERRITORY?

As part of the establishment of your franchise, we conduct a full competitor and supplier analysis in the area you wish to open the franchise. The strengths and weaknesses of these competitors will be identified and shared with you.

23. WHAT ARE SOME OF THE THREATS YOUR COMPANY SEES IN THE CURRENT MARKETPLACE?

Opening a business in the signage industry is now a better idea than ever. The industry is growing at an above-average pace, both in the printed and digital signage sectors. More and more businesses are recognising the need for effective signage, which is great news for Signarama.

If you want to buy a franchise,

but you still have not found the answer to your questions, please feel free to contact our team directly via phone or email. We look forward to hearing from you! 

SIGNARAMA SOUTHERN AFRICA

Unit 66 Studio Park
5 Concourse Crescent, Lonehill
Johannesburg, South Africa 2062
012 285 0412

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