posted
OK.... I'm sure this topic has come up before! I did do a search of the archives.
Now, what I'd like to know is - - Does anyone here run a sign franchise? Has anyone ever owned a sign franchise? What is the general feeling about sign franchises?
Someone is running Canadian Tire, Tim Hortons, Staples, Blackbuster etc.... there must be good money to be made right??
Post your thoughts!
Thanks
-------------------- Jason Schultz Graphic Designer Posts: 12 | From: Sault Ste. Marie, ON, Canada | Registered: Nov 2003
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Hiya Jason, I'm sure there will be a lot of cons posted about them. But, they do fill a niche. Will they make you money? That depends on you. Having managed & worked for a few, I'll give you my view...
Cons: 1) A large investment is required to start up. 2) Expensive to maintain - a lot of overhead 3) Up to 10% of your gross sales go back to franchisor. 4) Strict policies regarding all aspects of the business. 5) A legal & binding contract - nearly a non-compete clause 6) generally, not known for high end or creative work
Pros: 1) An established identity recognised, practically, wordwide. 2) Access to a proven system. 3) A lot of support from the franchisor. 4) Ongoing training. 5) Regular meetings with all levels of franchise. 6) Established relationships with vendors. 7) Established relationships with clients.
From what I've seen, all the franchises have strengths & weaknesses. Some excel in marketing while others are good at offering a large product line. The ideal would be to pick one that would complement you and pick up on your weaknesses. I'm not sure what I would do if I was given a choice between being an independent or a franchise. There are so many other things that I haven't addressed that have to be considered. It's a discussion that could go on for hours.
Havin' fun,
Checkers
-------------------- a.k.a. Brian Born www.CheckersCustom.com Harrisburg, Pa Work Smart, Play Hard Posts: 3775 | From: Harrisburg, Pa. U.S.A. | Registered: Nov 1998
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First-welcome to the BB Jason.Not much I can add to checkers remarks,he's right on the money.To fork over the money a franchise wants you better have a real passion for this business.
-------------------- Randall Campbell Randy's Graphics, 420 Fairfield N. Hamilton Ontario Canada Posts: 2857 | From: Hamilton Ontario Canada | Registered: Jan 2002
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I admit I have never been involved with a franchise, but have known plenty that have and I have reached the conclusion that, over all... starting your own business will be just as successful and you'll not be sharing your profits with someone that has done nothing to build your own personal reputation.
You will also have total say in everything you do without worrying whether it meets franchise approval.
The amount you send to the franchiser in most cases would pay your annual income tax.
Think about this...if you had a $100,000 year and had to give a franchise 10% (a figure earlier raised)you've just screwed yourself out of a nice pick up truck or a european cruise or a substantial down payment on your own building... not to mention a nice health insurance package for you and your family.
You decide!
[ November 22, 2003, 09:14 AM: Message edited by: Monte Jumper ]
-------------------- "Werks fer me...it'll werk fer you"
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I seriously considered going the franchise route when we started up 14 years ago. In the end I decided I didn't want the overhead and direction taking that the franchisor would impose. Probably was a good decision to stay independent. The franchisor has set up a few franchises in Southern Ontario but they do not seem to last long. Generally two years.
Here in Burlington we have had five franchises open up over the past 8 or 9 years. One has been quite successful and grown to about a 10 person operation (four of them family of the franchise). I suspect they have pretty big loan at the bank or a lot of personal money invested as they buy all the equipment and have remodelled their store twice in the seven years since they started. Another has shown moderate success. They are a three person shop and have had some family/staff turmoil and turnover during their 5 years. The third one got sold about two years after he started. The original owner had some health problems. The new owner appears to be struggling. The other two went out of business fairly quickly. One in less than a year and the other in about three years. In the latter the franchise threw in the keys after two years and the franchisor took it over and tried to make a go of it for another year.
Thats probably a pretty good look at your odds of being successful with a franchise. Fourty percent will die, fourty percent will become living wounded and 20% will be successful.
-------------------- Chuck Churchill, It's A Good Sign Inc. 3245 Harvester Rd, U-12 Burlington, Ont. Phone: 905-681-8775 Fax: 905-681-8945 Posts: 633 | From: Burlington, Ontario, Canada | Registered: Nov 1998
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Something no one else metioned. Sign franchises require a location of 100,000 plus population. They rely on high volume sale to create a profit. I looked into it once, and the fact that I would have to set up business in the nearest metropolis turned me off. Also, I like to fail on my own terms.
-------------------- Tim Whitcher Adrian, MI Posts: 1546 | From: Adrian, MI | Registered: Mar 1999
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Nice point, Monte - made me think "What if I could PRETEND I make a 10% payment to a Franchisor every month, but make it to myself instead?" That WOULD make a nice little bonus at the end of the year! Heck, I might even share some with my business, and invest in new equipment. (MIGHT) John
-------------------- John Stagner Action Graphics Salem, MO agraphics02@earthlink.net Posts: 98 | From: Salem, Missouri | Registered: Aug 2003
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I had the ver same attitude about paying some one else a fee. Then one day I saw a good friend of mine making 10 times what i was. I tried it and suddenly found my income doubled in just a few months. That more than covored the fees.
The town I live in has 3 franchise shops, Signarama, signwave, and signsnow with area population of 27,000. Plus there are 6 yellow pages of other sign shops around.
Signarama seems to be still around but I win bids against them because they need two weeks time where I can do it in just a couple days.
Signwave is always out working on something with his bucket truck. Very nice person willing to help out if I need it.
Signsnow I am told is doing well. Has 2 employees plus owner. does lots of wraps for bizzes in New Orleans..
-------------------- Leaper of Tall buildings.. If you find my posts divisive or otherwise snarky please ignore them. If you do not know how then PM me about it and I will demonstrate. Posts: 5274 | From: Im a nowhere man | Registered: Jul 2001
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I guess the one thing I dislike about the franchise sign shops is...
(spoken like a used car commercial)..."For X amount of dollars you can be a "Sign Company" overnight!!!"
...without any backround in the industry, basic art skills or knowledge of how to do it.
Example: Aunt Gertie (who made her retirement fund selling Tupperware) finds out that her computer can not only order greeting cards, but make lettering, too! She coughs up the $10K for the name, and puts her neices and nephews to work, hoping to build the provebial family business. Not one of them has a clue what they are getting into until the seminars and equipment training are done. Six months later, Gertie and the kiddies realize that Tupperware is a product and signs are a "service business" and that the only guy making a decent paycheck is the one they send the 10% check to every week.
Next up comes Mert. He buys the place cause he owns a couple of car washes and figures he can make a fortune knocking tribal stripes on Hondas. The first 20 kids thru the door are the same ones feeding him quarters into the vacuum cleaners back at the car wash, but are all he gets in 6 months and the "For Sale" sign is on the glass door entrance once again, and good old Mert opens a video arcade to get the rest of those quarters.
Ok, I'm being sarcastic, but it's out there. I think it is a shame that these companies don't screen the people they hand these franchises out to more. If they did, not only would the owners survive longer, but their quality and reputations would probably be better in the long haul.
In all fairness, there are some franchise owners who do hang in there and become better at what they do. But sooner or later they head for greener pastures...minus the franchise fees.
Rapid
-------------------- Ray Rheaume Rapidfire Design 543 Brushwood Road North Haverhill, NH 03774 rapidfiredesign@hotmail.com 603-787-6803
I like my paint shaken, not stirred. Posts: 5648 | From: North Haverhill, New Hampshire | Registered: Apr 2003
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If you did a search on this subject, you'd probably find some of Rich Stebbing's comments. He went to a franchise shop in a partnership that had difficulty. I wonder what his life would look like if he didn't have the partner and wonder whether he'd still be involved in the franchise. As far as I know, he's doing mostly window splashes from his van now. He's seen so many sides of the issue, I value his comments.
-------------------- The SignShop Mendocino, California
Making the simple complicated is commonplace; making the complicated simple, awesomely simple, that's creativity. — Charles Mingus Posts: 6713 | From: Mendocino, CA. USA | Registered: Nov 1998
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