SIGNARAMA franchise opportunity:  Are you familiar with it?

If so, please share your experience, opinions or insights with a comment below.

The SIGNARAMA franchise brand is part of the United Franchise Group (UFG).

According to the United Franchise Group website: “The experts at UFG have used their over 25 years of franchising experience to grow the franchising giant into a $500 million dollar success story with approx. 1400 franchise locations in 50 countries.

“The company includes franchise industry giants SIGNARAMA, the world’s largest sign franchise; EmbroidMe, the world’s largest embroidery franchise; Billboard Connection, an incredibly successful out-of-home advertising franchise; Transworld Business Advisors, for people to research business opportunities before investing and Plan Ahead Events, a home-based corporate event planning franchise.”

According to the SIGNARAMA website: “Your Success is Our Business – When you invest in SIGNARAMA, you gain access to one of the largest support staff in franchising, in addition to our resources and knowledge base… With nearly 1,000 stores in more than 50 countries, you can become part of an international brand that puts you ahead of the competition.”

However, data released by the Small Business Administration (SBA) indicates that SIGNARAMA franchise owners who qualified for SBA-backed franchise loans have an disturbingly high loan failure rate of 26%.

That qualifies SIGNARAMA for inclusion in UnhappyFranchisee.com’s list of WORST FRANCHISES IN AMERICA (by SBA loan defaults)

SIGNARAMA franchise owners have an alarming 26% SBA default rate.

The apparent drop in SIGNARAMA franchises in recent years is also a franchise red flag.

SIGNARAMA Franchise
SIGNARAMA U.S. franchises in 2008: 597
SIGNARAMA U.S. franchises in 2011: 485
Growth in franchise units 2008 – 2011 (#) -112
Growth in franchise units 2008 – 2011 (%): -19%
SBA loans granted since 2001: 107
SBA loan failure rate: 26%
Sources: Entrepreneur (growth), Coleman report (SBA)

The inability to repay an SBA-backed loan (or any franchise loan, for that matter) indicates a serious situation for the franchisee.

It’s likely that SIGNARAMA franchise owners who received SBA loans may have collateralized their franchise loan with their homes or other personal assets, and many were unable to repay those franchise loans… despite the serious incentive to do so.

Are you familiar with the SIGNARAMA franchise opportunity?

What do you think accounts for the SBA loan failure rate of SIGNARAMA franchise owners?

What steps should SIGNARAMA be taking to stop further franchise failures?

Has SIGNARAMA taken serious action to address the problems that led to these loan failures?

Please share a comment (anonymous is fine) or Contact UnhappyFranchisee.com.

If you are a SIGNARAMA franchise representative or employee, please feel free to leave a comment or email us at UnhappyFranchisee[at]gmail.com.

ARE YOU FAMILIAR WITH THE SIGNARAMA FRANCHISE OPPORTUNITY?  ARE YOU A CURRENT OR FORMER SIGNARAMA FRANCHISE OWNER?  PLEASE SHARE A COMMENT BELOW.

Contact UnhappyFranchisee.com



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unhappyzee

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  • I own a Sign A Rama and I can honestly say they have never done a thing for me.Everyone I've ever dealt with from there was like a second rate used car salesman.A couple of years ago they sold another franchise seven miles away from me and didn't even bother to tell me.That store was out of business within a year.As a matter of fact,all the Sign A Rama's around me have gone out of business within the last five years. It's not even like a real franchise in my opinion as none of my customers realize it's even a franchise.Don't get sold on the fact that you can go back to Florida for two weeks and come back home and know how to make signs,it just isn't that easy.So before you pour out your life savings or empty out your 401K,think long and hard about it.Call twenty Sign A Rama's from around the country and see what they have to say.Hope this was of to some help to someone.GOOD LUCK!!!!!

  • Sign making is a viable business. I believe we can grow our Signarama sales and we have many happy customers. Thomas feels like many other franchisees and I question the value in the franchise fees I pay. Their goal is to sell new and resale stores, the training we got was very limited and focused on sales and not sign making. That said there is a good market for sign making, digital printing is profitable.

  • How is digital printing effected by the post office getting more involved in the direct mail business? Does every door direct mail lower your prices? Is the cost of equipment going up or down? Thanks! Asking because all local the sign a rama's have closed. Franchise problem or owner problems.

  • DO NOT BOTHER WASTING YOUR MONEY ON A SIGNARAMA FRANCHISE

    ALL AT SIGNARAMA HEAD OFFICE IN THE UK ARE SHARKS TRYING TO RIP YOU OFF ALL SMILES AND PROMISES BUT NO SUBSTANCE TO THEIR PROMISES, AS AN EXISTING STORE OWNER I HAVE HAD NO SUPPORT FORM HEADOFFICE THE ONLY TIME I HEAR FROM THEM IS WHEN THEY WANT THE ROYALTY PAYMENT FROM ME, I AM SO DISILLUSIONED WITH SIGNARAMA AND THEIR UK HEAD OFFICE SUPPORT (OR LACK OF)

    I AM COUNTING THE TIME UNTIL I CAN GET OUT OF THIS AWFUL SETUP

    I HOPE THIS HELPS SOMEONE MAKE A VERY INFORMED DECISION BEFORE SIGNING ANYTHING WITH THE UK SIGNARAMA HEAD OFFICE.

  • I owned a Sign A Rama Franchise from 1999-2004. Fortunately I was able to sell the business for a fraction of my original investment. In hind site I was under capitalized and should never have bought the franchise. That said Sign A Rama did everything possible to get me in a location. Once open I was out of operating capital with in the year and struggled for 5 years. I was lucky, I did not default on my SBA loan. I agree with the above comments. The people selling the franchises were all smiles and pats on the back until the deal closed. They negotiated a horrid lease for me. The lease was the number 1 reason for my business failure. The year I opened my franchise they opened 4 other locations in Columbus. All have been resold and 2 no longer exist. The unit I sold is no longer open. I certainly could have done a better job and hung on for a few more years but the location was poor and the rent was too high to make anywhere close to the money I was lead to believe I'd make. The equipment package was adequate but outdated with in months. I would not reccommend Sign A Rama. I will always regret my decision to buy a Sign A Rama franchise.

  • Outside the US, this IS NOT A VIABLE BUSINESS. I should know, I lost my entire life savings and my entire investment into a Sign A Rama franchise in Spain. The company refused to invest in a national accounts salesperson despite the huge startup costs paid to the company. Therefore, no national accounts and since nobody here ever heard of Signarama, the franchise concept didnt work. No referrals from the head office or from store to store. When the economic crisis hit Spain, the head office refused to negotiate royalty payments despite a huge fall in sales figures accross all stores. The end result is that all franchisees in Spain lost their investments and had to close their stores while being hugely in dept to Sign A Rama for unpain royalties. A real nasty situation.

  • As a former Sign-A-Rama employee (I worked in 2 different locations), I can attest to the gross failure rate of the business. The owner is basically forced to hire someone to do all of the signmaking, which means they basically have no control over their own business. I can't believe SAR continues to sell franchises! You can start a sign shop for less than $1,000 - I've done it! And since I have no overhead, I'm incredibly profitable. I feel sorry for all the franchisees out there. It's an uphill battle. If you're reading this and you haven't bought a franchise yet, DON'T!!! Put an ad on Craigslist... team up with someone who knows the business - you can get a lot further without all the overhead.

  • Can a person get out of a Signarama contract. If so please advise. I've been in it for a year haven't made any money. Have lost my life savings.

  • Hello, Joe,

    My firm, Bridge Management Consulting, helps small business owners them who are struggling with overwhelming debt resulting from a failing or closed business.

    We’ve handled several franchisees who need to get out of their particular franchise hell, and we’ve successfully fought back on behalf of our clients. Don’t give into them!

    We’ve helped with unearned franchise fees, terminating franchise agreements, and non-compete clauses. We know how to work with collection agencies, prepare client’s PFS, and negotiate settlements that are acceptable to our clients.

    Feel free to contact:

    Ryan Lineham, Director of Client Services
    401-390-3800
    ryan@bridgemgt.com

    We offer free consultations to all franchisees. We’d love to talk with you. Thanks!

  • Hello
    Do not know who will see this but I would be interested in talking with any one
    who would like to be involved in a sign business. It is the most rewarding business
    ever and the most recorded business not to fail. Weather you are an existing sign
    company or want to start you own I am sure we can work together been in
    business for over 20 years and my fees are very reasonable and no ongoing
    expenses before sales are made email me and we can chat. Looking for
    interested people in Richmond Va Greenville SC and etc Thanks look forward to talking with you.

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