Deciding whether to open a small independent shop or a sign franchise is not an easy task. There are a lot of reasons for choosing one or the other and one of the major factors is cost.
In 2014, the sign franchise industry brought in around $50 billion in revenue. People are attracted to franchises because they combine the benefits of business ownership with known branding, and that is particularly true in the sign business. They also appreciate the experience and support that established franchisors bring to the table.
There are a number of advantages to purchasing a franchise. We believe one of the most important is the savings you realize on costs.
As a franchisee, your total up-front investment costs are often much less than with a small business. Franchising also mitigates many of your start-up expenses, like equipment and inventory. Some other cost savings that people often overlook include the following:
- Shared across-the-board expenses that apply to each franchise — such as advertising — may be pooled. This also results in greater exposure for your small sign business through national campaigns, etc.
- Franchisers often provide training programs that teach franchisees about the sign industry, even if they have no previous experience.
- Product lines, services, and other ownership decisions have already been tested by the proven franchiser, offering you as a franchisee a more stable business model than self-ownership.
As you weigh your decision, be sure to factor in the operational savings you’ll realize with a franchise. Ultimately, your decision may boil down to what you are willing to invest in time and money.
If you prefer the stability and cost benefits of being part of a larger organization, opening a sign franchise may make more sense.
To learn more about Signarama franchising in Canada, contact 905-281-8000 Ext 1 or download the free Signarama Canada Franchise brochure.
