FAQ’s
Buy a Franchise: What You Need to Know
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:
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. Read more.
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 to cover the initial costs of franchising (R105,000 Incl Training) and equipment (R50,000 to R1,3m*).
To convert your current business, you can expect to pay a franchising fee of R105 000 and the cost of equipment and rebranding which will amount to R50 000**. The assistance Signarama provides when you decide to buy a franchise is unparalleled. (Read more link to Ready-to-Own Options)
* Dependent on final site selected and equipment package
** Estimated. Rebrand to SAR spec for own account.
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. Read more.
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 training, build out, and installation of your franchise. Read more.
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.
Week 1 will take place at our franchise office in Lonehill, Johannesburg, and consists of a theoretical introduction to get you ready for your business venture. Depending on the franchise model you select, weeks 2-4 will consist of your store build out or remote training. During this time you will also be introduced to an established Signarama Mentor franchisee who will help you apply your new-found knowledge. Week 5 consists 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. Read more.
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. Read more.
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. Read more.
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?
Franchisees in brand new locations across within our network have reached their break-even point as quickly as month 3. Naturally if you’re purchasing an existing Signarama business with ready-made clients, you can be cashflow positive from the very beginning. Read more.
09. What is the level of ongoing franchise fees, how are they calculated and when are they payable?
You’ll contribute to our National Adveritisng Fund alongside the rest of our network to continue building Southern Africa’s strongest signage brand. Read more.
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?
You remain responsible for your local marketing efforts and we’ll provide you with resources and ideas to market your Signarama in your local community.
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 expected to undertake marketing, advertising and promotions of 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. Read more.
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. Read more.
14. 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. Read more.
15. 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?
Yes, we are transparent about our franchises’ operations and procedures guidelines, and during our step-by-step process introducing you to the Signarama brand, we will introduce you to Signarama franchise owners and showcase their locations. Read more.
16. 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, after a deposit has been paid. Read more.
17. 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. Read more.
18. 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 limited financial disclosure with operating results from existing franchises. Read more.
19. 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 and FAC)). 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. Read more.
20. 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’. Read more.
21. 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. Read more.
22. 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. Read more.
Here is What Our Franchisees Say
We became a Signarama Franchisee in 2019 and our company has since then been able to acquire a larger market share in the signage industry, boost sales, develop systems and processes and an overall approach to the market which enables us to deal with any client – regardless of industry and size.
The “Signarama Franchise” provided us with bases and guidelines regarding the modern technology in signage especially on 3D lettering – from sales & marketing to more complex administrative matters, which enabled us to become a powerful, resourceful and valuable part of the Franchise Network. We look forward to further solidifying our position in Zimbabwe and together with other Franchises.
Hausen Zimbowa | Signarama Harare
Joining a Signarama franchise in Shelly Beach, a coastal town in KwaZulu-Natal, South Africa provides a unique opportunity to be part of a global brand that delivers high-quality signage. With over 30 years of experience, Signarama offers its franchisees great support services, lead generation, marketing and advertising campaigns, and affordable pricing.
Andrew Ramos | Signarama South Coast
The Signarama brand gives me the ability to approach large corporate clients, and small to medium businesses to solicit work with equal confidence. We’re small enough on a local level and large enough on a regional level to provide branding for everyone.
Francois Schoeman | Signarama Pretoria North
Support offered by the franchise office is great. No request for help is too big or too small. They really do care about my success.
Jonty Myburgh | Signarama Middelburg
No two days are the same, and that is great! The ability to be creative to meet a clients' branding needs is exciting. I get a kick out of driving down the street seeing signs that we have created help our clients grow.
Bryan Coetzee | Signarama Central Cape Town
Signarama was such a natural choice for us because the financial decision was an easy one to make. We could see that it would be successful.
Lesego Khutsoane | Signarama Bramley
We chose Signarama because we wanted to have a tested, tried and true business model that we could jump into, getting into business. It was imperative that it support our family right away and Signarama has proven to be just that model.
Gavin Mann | Signarama West Rand
Want to Buy a a Franchise?
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!
