Buying a sign franchise can give you the opportunity to be your own boss. For some people, franchises are the ideal way to get into business ownership without the high costs of a startup business.
That doesn’t mean that starting your own sign franchise is going to be without expenses. While franchises are cost-effective for entrepreneurs, there will be some outlays to start and maintain your business.
Keep reading to learn four costs you need to be aware of before you invest in a sign franchise.
1. Franchise Fees
Buying a sign franchise can make a lot of financial sense. This is especially true for new business owners and entrepreneurs who don’t have extensive savings. A franchise can also make sense for individuals who can’t get the large loans required for a new startup company.
However, when you buy a part of a franchise you generally pay fees to the corporation that owns the name. These fees cover legal expenses and the cost of getting your franchise up and running, and they profit and strengthen the company.
While it might be hard to forget about them when you’re buying a sign franchise, associated fees need to be part of your budget from day one.
A sign franchise can’t operate without a brick and mortar location and an office for employees who work there. For franchise buyers, that means paying monthly rent for a commercial space.
You probably don’t need to be in the highest traffic area in your neighborhood, but some walking and driving traffic makes marketing easier. A balance of affordability and visibility are your best bet when you’re thinking of starting a sign franchise.
You’re also going to have to pay for utilities unless they’re included in the rent payments, which is rare in commercial spaces.
3. Employee Costs
No franchise can run without employees. As a new franchise owner, paying those employees is going to be your responsibility.
A quality manger and sales staff is essential if you want to get and retain customers. You can start small and add employees as you grow, but you can’t do everything yourself.
Make sure you have a budget for paying the people who work for you.
Paying rent in a commercial space will likely entitle you to upgrades and basic maintenance on things like lighting and plumbing. That doesn’t mean that you will not be responsible for some maintenance costs. Depending on the lease you sign and how competitive your area is, you may even have to handle the basic stuff.
You’re also going to have cleaning fees and regular costs for things like interior painting. These may not be your biggest bills, but all costs matter when you’re starting a new sign franchise.
Consider a Signarama Franchise
Owning a franchise can be exciting and rewarding, but the costs can make getting started tough. While franchise ownership may be within your grasp, you need to know that you’re not taking a leap you can’t afford.
Consider all of the costs and make the right decision for your personal and business life. To learn more about why Signarama is a great investment and the costs associated with it, visit our website.