Signal 88 Security
Signal 88 Security franchises offer comprehensive security services including patrol, surveillance, and executive protection under the Signal brand. Known for robust onsite and off-site security solutions, this franchise operates in the competitive security services industry.
Signal 88 Security franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of a Signal franchise ranges from $160,200 to $10,189,650. This includes a mandatory payment of between $150,000 and $10,000,000 directly to the franchisor or its affiliates [p.1].
What is the initial franchise fee?
The initial franchise fee is at least $150,000 and is determined based on a specific formula [p.14]. This fee is fully earned upon signing the Agreement and is not refundable [p.14, p.244].
What are the ongoing royalty and advertising fees?
Royalties are calculated as a percentage of net revenues billed to customers by the Company. These royalties represent sales-based obligations related entirely to the Company's performance under the franchise agreement [p.245]. The franchisor has sole discretion over how Franchise Support Fees, which include advertising funds, are spent on various marketing activities such as internet, magazine, newspaper, television, or direct-mailing advertisements [p.30].
How long is the initial franchise agreement, and can I renew it?
This isn't specified in the excerpts.
Can I sell or transfer my franchise, and what does that require?
To sell or transfer your franchise, you must agree in writing to comply with the obligations set forth in the agreement or sign a new franchise agreement in the form offered to new franchisees [p.133]. The franchisor can refuse transfers except for good cause [p.86]. This isn't specified in the excerpts regarding the exact process or requirements beyond these points.
On what grounds can the franchisor terminate the agreement?
The franchisor may terminate the agreement for good cause, which includes the failure of the franchisee to comply with any lawful provision of the franchise agreement and to cure such failure after being given written notice and a reasonable opportunity to cure, not exceeding 30 days [p.86]. Additionally, the franchisor can terminate the agreement as permitted by the terms of the Agreement and applicable law [p.127].
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts. The provided FDD does not detail specific net worth or liquid capital requirements for qualifying as a franchisee.
Do I get an exclusive or protected territory?
Yes, you are granted an exclusive Territory as defined by Lots, with each Lot typically covering a population of approximately 100,000 to 400,000 people. You will receive one or more exclusive Territories, and the franchisor reserves the right to reduce or alter your Territory upon renewal of the franchise [p.36].
What training and ongoing support does the franchisor provide?
The franchisor provides an initial one-week in-person training course at their specified location(s), which includes basic aspects of establishing and operating a Franchised Business. This is included in the Franchise Fee. Additionally, they offer various types of ongoing virtual training and consultation via phone, email, and web conference, as well as access to resource materials. [p.35]
How many franchised outlets are there, and how many have closed or been terminated?
This isn't specified in the excerpts.
Does the franchisor share any financial performance or earnings information?
The franchisor is permitted to provide financial performance information if there is a reasonable basis for it and if such information is included in the disclosure document [p.49]. However, the franchisor does not make any financial performance representations except when providing actual records of an existing franchise being purchased [p.55]. Any other financial performance information or projections should be reported to specified authorities [p.55].
What am I restricted to selling, and where must I buy supplies?
You are not restricted to selling specific products; however, you may have to buy or lease items from the franchisor or a limited group of suppliers designated by them, which might be more expensive than other options [p.3].