Franchising offers a level of support not available to those who go it alone
Strength in numbers
There are around 13 signage, printing and graphics franchises in the UK, each with a different proposition and approach—so where do you start? A good starting point is the British Franchise Association (BFA), the only voluntary self-regulatory body for the UK franchise industry, with a standards-based approach to membership. One of the BFA’s main jobs is to help potential franchisees recognise the good, the bad, and the ugly for what they are.
The major players
Diversifying into areas such as vehicle wrapping
is easier when you can rely on a franchise
network's resources. (Pictured) funky vehicle
graphics created by Signarama Slough
The three major players in the sign franchise market are Signs Express, Fast Signs and Signarama, all of which are members of the BFA.
Signs Express, currently celebrating 20 years of franchising, was founded in 1989 by David Corbett and Frank Eliel, who spent three years perfecting their business model, developing a strong brand identity and refining production processes at a pilot centre in Norwich. The first Signs Express franchise was awarded in 1992. Signs Express says 70 percent of its centres have been trading for over ten years, with 40 percent still under the same ownership.
The company has recently refreshed its corporate identity across all marketing materials and revealed its brand new look at the recent National Franchise Exhibition.
“We are constantly looking to add value to both our franchise offering and wider customer appeal. We’re working on a range of brand new marketing and creative ideas to ensure that the way Signs Express looks and feels in 2012 reflects the fact that we’re a company with enormous drive and ambition, as well as a strong heritage,” says Signs Express marketing manager, Rebecca Dack.
Fastsigns was established in 1985 in Dallas, Texas, by Gary Salomon and Bob Schanbaum, with the first franchise sold in December 1986, and the first international franchise sold in 1991. Now, 27 years on, with over 530 centres worldwide, including 19 in the UK, the business concept has grown from just offering banners and vinyl. The company sees itself as a signage, graphics and visual communications partner.
We provide a wide variety of products, services and comprehensive visual communications solutions to help companies meet their business objectives”
Signarama claims to be the largest full service sign company in the world, with over 850 companies in more than 50 countries. Now headquartered in West Palm Beach, Florida, the company was founded in 1986 by Ray and Roy Titus in Farmingdale, New York and began franchising in 1987.
“For the past 25 years Signarama has used its tried and tested franchising methods to help hundreds of people start up their own business,” comments Signarama UK master franchisee, Sunil Kapoor.
Features and benefits
The Signarama network has built up a reputation
for getting the job done, seeing high-end
retailers call on its franchisees' services
All three franchises agree that a strong brand that is recognised and well-respected within customer markets is a key factor in establishing a successful business.
“Our franchisees benefit from having access to over 25 years’ expertise in the signage sector, and all that comes with being part of a well-known and respected brand,” confirms Allison.
Training and support for franchisees is also an essential element of the offering, as Dack stresses: “Training and support are fundamental to the success of the business and the Signs Express network benefits from a dedicated ongoing training programme for both franchisees and their staff. Signs Express combines ethical franchising with a strong business model and the opportunity for franchisees to experience high financial rewards from their business.”
Signarama believes its in-depth discovery process is its ‘stand-out’ feature. This allows potential franchisees to spend time with existing store owners, and to meet key personnel and other executives, including chief executive officer, Ray Titus, and president, Jim Tatum, at Signarama’s Florida headquarters.
“This enables franchisees to fully understand the level of support that is available to them,” explains Kapoor, adding: “We provide them with full training at our academy in West Palm Beach. Here they learn not only the basics of sign production, but also the tools to help them run and develop their business once they open their doors in the UK.”
Signarama, Fastsigns and Signs Express all provide packages that include assistance with finding premises, shop set-up, equipment, recruitment, marketing and finance packages.
“We also operate an Ad Fund to help promote the Signarama brand on a national and local level. All Signarama franchisees have access to the company website and each store has a dedicated micro site that they are able to utilise to the benefit of their business,” adds Kapoor.
Fastsigns’ ‘Fast-Start’ programme offers new franchise owners reduced royalties and marketing contributions in the first year so that they can invest more into their marketing activities. Preferential terms are also offered for existing signage business owners who wish to become a Fastsigns centre.
Most independent signage business owners are so busy working in the business that they have no time to work on their business, which is why many are converting to the Fastsigns network across the globe”
Fastsigns franchisee, Dan Stutzman, whose sales increased 300 percent in the first five months of converting, sums up the advantage of being part of a known brand: “We feel we have hired the best sign consultants in the country, plus our public image is more respected, which gives our business more value when we are ready to move on. That is perhaps the most valuable of considerations for any independent owner.”
The many benefits provided by Signs Express include regular business reviews and business development assistance, preferential rates from trade suppliers, marketing support including access to the thousands of enquiries the company receives and access to its national accounts client list.
“In addition, our extranet provides resources and templates for all manner of day-to-day activities, which a stand-alone business would struggle to achieve with the cost and time pressures small businesses face,” continues Dack, adding: “The Signs Express franchise allows franchisees to become part of the largest sign network in the UK—so franchisees are in business for themselves but not by themselves.”
The ideal franchisee
Previous sign industry experience is not a prerequisite as the training and support packages offered will provide the required level of knowledge and expertise to get the franchisee up and running. However, drive together with good communication and people skills are seen as essential qualities in a potential franchisee.
Fastsigns’ Allison says there is no particular mould that a person needs to fit into to run a Fastsigns franchise: “We have a wide range of business owners: men, women, couples and family members, of all different ages and from all different backgrounds. Good communication skills, and the desire and ability to follow a tried and tested franchising system, are the most important requirements.”
John Harvey and his wife, Eileen, set up their Fastsigns Guildford franchise in 1995 after John was made redundant from his position as industrial and commercial sales manager with British Gas at the age of 45.
The redundancy money meant that we had a lump sum to invest and I thought the franchising model sounded interesting and a way to earn a decent living while keeping things more under my own control”
During a visit to the Franchising Exhibition, he was immediately drawn to signage and set up interviews with franchisors and chose the Fastsigns model, as he explains: “The training was excellent, so we felt well equipped to do the job and since then Fastsigns have been very supportive keeping us up-to-date with the latest technology advances and providing additional training. We’ve made a good living from the business and there’s still a lot of potential for development and growth, especially with new technologies appearing all the time.”
Passion and good people skills are also high on Kapoor’s list: “It takes a big commitment to set up a new business and, whilst we offer a great support package, we do need people to be passionate about taking their business forward. Over the years, we have had men and women of all backgrounds become successful franchisees, but the one thing they all have in common is good people skills; this makes dealing with staff, suppliers and clients that little bit easier.”
Dack also adds: “As a management franchise, we are looking for people who can manage the running of their business and staff.”
However, in recent years, Signs Express has recruited sign-makers that are looking to run their own business, but see the benefits of the added assistance a franchise can provide.
One such example of a franchisee who first worked in the sign industry is Malcolm Lant from Signs Express Gateshead. Malcolm bought an existing franchise in 2005 and has taken the business to new heights. His success has been recognised by the BFA in its ‘Franchisee of the Year’ awards, in both 2011 and 2012, as well as last year's Sign Industry Awards.
Dave Nurse from Signs Express Leeds is another franchisee who first worked as a materials supplier and saw Signs Express as a way to establish his own family business. Dave and his wife, Kim, started the business in 2005 and have since brought their son, Rick, into the business.
“I’d had a lot of dealings with sign production centres in my previous roles and Signs Express stood out by far as the leader in the field. We were proud, excited and reassured at the prospect of becoming part of the Signs Express network,” says Dave.
Look before you leap
This modern branding was created for the
MK Gallery by Signarama Milton Keynes
Buying a franchise is a long-term commitment, so potential franchisees need to have financial backing behind them—not just for the costs of buying a franchise and equipment, but working capital too. The cost of setting up a franchise ranges from around £50,000 to £100,000. So, what is the advice from these major players?
“If starting from scratch, you will also need to factor in your own living costs to ensure that while the business is still young, you can maintain your living standards,” advises Dack, adding: “Franchisees need to make important business decisions and work hard, as success does not happen overnight. Overall, evaluate whether you like working with people, liaising with customers and see yourselves leading a team.”
“The franchise has to be the right fit for the individual and/or their business, so do your research, talk to each franchise, and find out what you get for your money. Also, make sure that large-format printing is an integral part of the package. Support is what you’re looking for, not just at the beginning but throughout your time with them. Find out in what form this support is available to you,” cautions Allison, who goes on to say: “And talk to existing franchisees, not just the franchisor, so you get both sides of the story.
Also, if you’re already running your own signage business and you want to convert, before you take the plunge ask what would happen if you wanted to change back to being independent”
You also need to be prepared to work within a business model—this is the tried and tested format, corporate identity guidelines and working practices that the franchise has built its reputation on.
"Franchising allows you to stand behind a brand name and work on a proven system. So, the key to success is to stick with the plan, be prepared to be teachable and avoid the temptation to change or deviate from the system,” confirms Kapoor.
Allison also weighs in with a final point of view: “Franchising only works when the royalty fee that you pay for being part of the group makes a worthwhile difference to the growth of your business, and your bottom line. It is a reciprocal arrangement, and both parties need to invest to make the business more profitable, and both need to benefit from that increased profitability. Do your homework and make sure that there are incentives for the franchisor to help grow your business.”
So, before you take the plunge into the world of franchising, there is plenty of investigation and careful analysis to be done of the franchise opportunities and models on offer, and some honest soul-searching to decide whether it is really the way forward for you. Again, the BFA offers comprehensive guidance and a whole range of questions to ask both yourself and a potential franchisor, so a visit to their website is as good a place to start as any. If you decide that the fit is right, the opportunities are certainly out there to create a very profitable business.
