FASTSIGNS franchise
A franchisee operates a leased-premises FASTSIGNS Center that sells, produces, installs and services signage and visual communications for business customers, including electrical and non-electrical signs, banners, vehicle graphics and wraps, ADA and compliance signage, wide-format and textile printing, digital signage, promotional products and related design services.
Manager-run permitted Disclosed
- Source
- 2026 Franchise Disclosure Document — FASTSIGNS International, Inc.
- Document
- FDD 2026, issued 2026-05-01
- Item
- Item 15
- Page
- PDF p. 85
- Obtained
- Wisconsin Department of Financial Institutions — Franchise Registration Search, file 641543
Not a passive investment at the outset: the franchisee (if an individual) or the Managing Principal must devote full time, best efforts and constant personal attention to day-to-day operations for at least the first six months after opening. After that period the owner may step back only if a designated Key Management Employee devotes full time to running the business; that person need not hold equity but must sign a non-compete. The Managing Principal must hold at least a 25% ownership interest. The franchisee must also designate a graphic designer and a visual communications specialist who complete initial training, and must hire an outside sales professional within 120 days of opening and keep one for the rest of the term.
What stands out
- Total initial investment of $231,225 to $386,285 for a new Full-Service Center, including a $49,750 initial franchise fee; Conversion and Co-Brand formats start lower, at $95,968 and $89,068.
- Ongoing fees: 6% Service Fee with a $1,250 monthly floor, 2% ad fund, $175 monthly technology fee, and at least $850 a month of mandatory local digital advertising, plus third-party CoreBridge and Google Workspace costs.
- Average gross sales of $1,088,585 across 690 U.S. Centers open all of 2025, against a median of $823,726 — only 34.8% of Centers reached the average and 179 reported $500,000 or less.
7 more observations
- Profit data is disclosed but narrow: average EBITDA of $189,585 (13.6% of sales) comes from just 307 Centers that volunteered financial statements and whose average sales were $1,393,118; the least profitable quarter of that group averaged roughly break-even EBITDA.
- 710 franchised U.S. outlets at December 31, 2025 and no company-owned outlets; net growth of +12, +16 and +5 over 2023–2025, with terminations rising from 1 to 10 and transfers from 26 to 36.
- The owner or Managing Principal must work full time in the business for at least the first six months; after that a full-time Key Management Employee may run it. An outside sales professional must be hired within 120 days and kept for the term.
- Territory is drawn around a minimum of 4,000 businesses for a new Center but is not fully exclusive: another Center may be authorised once the business count rises 20%, and the national accounts programme may sell inside the territory.
- Ten-year term with one ten-year renewal at 50% of the then-current initial fee; transfer fee is at least $24,875; disputes are arbitrated in Dallas County, Texas under Texas law with a one-year limitation period.
- Managing Principals personally guarantee the agreement, and a state-required cover warning notes a spouse or other person with rights in the franchisee's assets may be required to accept joint and several liability.
- The franchisor states that purchases from it or its approved sources are 47% to 52% of start-up costs and 50.9% to 54% of purchases in operation; it received $959,222 in supplier rebates in 2025 and $922,804 (1.7% of revenue) from sales to franchisees.
Things to verify
- Ask what the minimum sales performance levels referenced in the cover-page risk warning actually are, and what happens to territorial rights if they are missed — the Items reviewed do not state the thresholds.
- Ask how long the post-term non-compete lasts; the Item 17 table gives the 15-mile radius but no duration, and the radius extends around every existing FASTSIGNS Center.
- Test the EBITDA figures against the sales distribution: the profit tables cover 307 self-selected Centers averaging $1,393,118 in sales, not the 690-Center population averaging $1,088,585.
5 more questions
- Ask why terminations rose from 1 in 2023 to 10 in 2025 and request the Exhibit G-2 former-franchisee list; the franchisor states it has no confidentiality clauses restricting former franchisees from speaking.
- Price the fully loaded ongoing cost: 6% Service Fee (minimum $1,250 a month), 2% ad fund, $175 technology fee, $850 minimum digital ad spend, the virtual sales assistant subscription, CoreBridge at $299 or more a month and Google Workspace seats.
- Confirm the CoreBridge software cost after the two-year prepaid period, including the expected EVO pricing of roughly $309 to $449 a month and the anticipated rise in the prepaid package to about $5,500 from January 1, 2027.
- Budget for the required full-time outside sales professional from month four onward, and note that Item 19 attributes materially higher sales to Centers that employ one.
- Verify the exact scope of the Item 3 arbitration and the two Item 4 bankruptcy matters with counsel, and read Exhibit K for state addenda that may override the Texas arbitration venue and choice of law.
Category cost placeholders, not a forecast. This snapshot uses the default inputs; the calculator below updates when you edit them.
Evidence confidence: High. This describes source support, not investment quality. AI-extracted and machine-verified where stated; no human line-by-line review. Source and review record.
Read the full research overview
A FASTSIGNS franchisee runs a business-to-business sign and visual communications shop from leased premises of roughly 1,300 to 1,500 square feet, selling and producing signage, banners, vehicle wraps, wide-format printing, digital signage and related design and installation services. FASTSIGNS International, Inc. is a Texas corporation incorporated in 1986 and is a subsidiary of Propelled Brands Franchising, LLC, ultimately controlled by affiliates of LightBay Capital and Freeman Spogli & Co. It operates no Centers of its own.
The estimated initial investment for a new Full-Service Center is $231,225 to $386,285, including a $49,750 initial franchise fee and three months of additional funds of $35,000 to $55,000; production equipment alone is $74,341 to $78,152. Lower-cost Conversion ($95,968 to $229,477) and Co-Brand ($89,068 to $219,477) formats are offered to existing businesses. Ongoing fees are a 6% Service Fee subject to a $1,250 monthly minimum, a 2% ad fund contribution, a $175 monthly technology fee, at least $850 a month of required local digital advertising and third-party software costs; sales-band rebates can reduce the effective royalty and ad rates for higher-volume Centers. No minimum liquid capital or net worth requirement is disclosed in the reviewed source.
Item 19 is unusually detailed. Across the 690 U.S. Centers that operated for all of calendar 2025, average gross sales were $1,088,585 and the median $823,726, with only 34.8% of Centers reaching the average and 179 Centers reporting $500,000 or less. It also publishes profit data — average EBITDA of $189,585, or 13.6% of sales — but only for the 307 Centers that voluntarily submitted 2025 financial statements, a group averaging $1,393,118 in sales, well above the system. The bottom quarter of those reporting Centers averaged EBITDA of roughly zero. None of the figures are audited and none are projections.
The U.S. system grew from 677 franchised outlets at the start of 2023 to 710 at the end of 2025, but the pace slowed: net +12, +16 and +5 across the three years, with terminations rising from 1 in 2023 to 10 in 2025 and transfers between franchisees climbing to 36. Item 3 discloses one pending franchisor-initiated arbitration against a former franchisee and one unrelated settled derivative suit; Item 4 discloses two bankruptcies involving individuals, not the franchisor. Managing Principals must personally guarantee the agreement, disputes go to arbitration in Dallas County, Texas, and the post-term non-compete reaches 15 miles from the premises and from every existing FASTSIGNS Center.
View ratings and their supporting evidence
Transparent ratings
How these are computedEach dimension is scored 1–5 from published formulas. Missing data yields “Not enough evidence to rate”, never a low score. There is no composite score by design.
How the system has performed, computed from the disclosed Items 7, 19 and 20. Figures a documented material source inconsistency puts in doubt are excluded, and the dimension shows “Not rated”.
Inputs
- Franchised outlets 677 → 710 (Item 20, Table 3)
- Thresholds: ≥15% → 5; 5–15% → 4; 0–5% → 3; −5–0% → 2; below −5% → 1
Inputs
- Attrition = (terminations + non-renewals + reacquisitions + ceased-other) ÷ start-of-year franchised units, averaged over 3 fiscal years
- Thresholds: <2% → 5; 2–4% → 4; 4–6% → 3; 6–10% → 2; >10% → 1
Inputs
- AUV $1,088,585 (disclosed) ÷ midpoint investment $308,755 = 3.53×
- Thresholds: ≥2.0 → 5; 1.5–2.0 → 4; 1.0–1.5 → 3; 0.7–1.0 → 2; <0.7 → 1
How much this brand’s FDD discloses, and how well-supported our data on it is. This measures transparency, not business performance — a strong business that discloses little scores low here and stays unrated above.
Inputs
- Item 19 present (+1)
- Average plus median or a distribution (+1)
- Population 97% of franchised units, clearly described (+1)
- Cost or profit data disclosed (+1)
- Multi-year or cohort data (+1)
- Franchisor Track Record
- Franchising 40 years (since 1986) · 710 outlets · Item 3: 2 matter(s) disclosed · Item 4: bankruptcy disclosure present
- Multi-Unit Scalability
- No area development or multi-unit development agreement is offered in this document. The franchisor sells single Centers under the Franchise Agreement and ch… · Manager-run permitted
- Operational Intensity
- Manager-run permitted
Initial investment
FDD Items 5 and 7Format shown: Full-Service Center — new single-unit build-out of leased premises of roughly 1,300–1,500 sq ft
$231,225–$386,285 total initial investment. Excludes real estate purchase. Includes 3 months of additional funds.
View full investment breakdown — Items 5 & 7
| Initial franchise fee (the named Item 5 fee only) | $49,750 Disclosed
Reduced to $24,875 for a franchisee's additional Center, and to $24,875 (50% off) for VetFran veterans, first responders, or franchisor officers/employees; last fiscal year's actual paid fees ranged $1,000-$49,750. |
|---|---|
| Other required initial payments to the franchisor (Item 5) |
|
| Total Item 5 payments to franchisor/affiliates | $142,217 Derived
$153,270 Derived
|
| Total initial investment — low | $231,225 Disclosed
The Item 7 Full-Service Center table totals $231,225, which is the exact sum of its low column. The cover page states $231,226 for the same format — a $1 difference; the Item 7 table figure is used here. |
| Total initial investment — high | $386,285 Disclosed
Sum of the high column verified to foot to $386,285. |
| Midpoint of range | $308,755 Derived
|
| Real estate purchase included? | No — assumes a leased site |
| Additional funds assumed | 3 months |
| Required liquid capital | Not disclosed in the reviewed source Not disclosedNot disclosed in the reviewed source. We did not find this value in 2026 Franchise Disclosure Document — FASTSIGNS International, Inc.; we do not fill gaps with estimates or third-party figures. No minimum liquid capital requirement is stated on the cover pages or in Items 1, 5, 7, 11 or 15 of the reviewed document. |
| Required net worth | Not disclosed in the reviewed source UnresolvedUnresolved after two independent readings and a tie-break: record None; Pass A None; Pass B None. Tie-break could not resolve: The cover pages and Items 1-22 state no net-worth qualification for candidates (Pass B is right that 'net worth' returns no hits there), but the exhibits do carry a $300,000 figure - Attachment D to the Franchise Agreement, defining a 'duly authorized franchisee' who may take an assignment of the lease - and because that clause describes the franchisor's general 'then-current standard qualifications' yet appears only in a landlord-facing form for a contingent lease assignment, it is genuinely ambiguous whether it states a required net worth for this field, so the record's null stands pending a human call. No minimum net worth requirement is stated in the reviewed document. |
The main figures are for a new Full-Service Center on leased premises; no real estate purchase is contemplated and Item 7 assumes a leased site of roughly 1,300 to 1,500 square feet. Additional funds cover the first three months of operation and exclude owner and manager compensation, personal living expenses and debt service. The franchisor states that neither it nor its affiliates offer financing for the initial investment, although a promissory note is offered in connection with Conversion and Co-Brand franchises (Exhibit J). Item 5 quotes an equipment cost of $67,520 to $71,294 while the Item 7 production equipment row shows $74,341 to $78,152; the Item 7 table figures are used here. The Conversion table total in Item 7 is $229,477 while the cover page states $230,477 for the same format.
Item 7 line items (19)
| Expenditure | Low | High |
|---|---|---|
| Initial franchise fee — Lump sum to the franchisor at signing; non-refundable. | $49,750 | $49,750 |
| Leasehold improvements — Based on actual costs for Centers opened in the past 12 months at a 1,300–1,500 sq ft footprint; net of landlord free rent and tenant improvement allowances. | $28,300 | $112,177 |
| Furniture and fixtures | $5,505 | $5,735 |
| Deposits (lease and utilities) — Item 7 states typical rent of about $20.50 to $37.20 per square foot per year. | $2,500 | $14,149 |
| Telephone and networking | $810 | $810 |
| Decor and graphics | $788 | $788 |
| Tools and supplies — The franchisor may request a deposit of up to $22,500 before opening to purchase these items on the franchisee's behalf. | $3,540 | $3,540 |
| Production equipment — Includes the required opening package: 64-inch printer, plotter, laminator, networking hardware and finishing station. | $74,341 | $78,152 |
| Center management system computer — CoreBridge management software is required; a two-year prepaid package currently costs about $3,500 and is expected to rise to about $5,500 for purchases on or after January 1, 2027. | $5,084 | $7,954 |
| Signage — 2025 average for one exterior sign was $2,987 excluding installation. | $2,400 | $5,864 |
| Initial inventory | $1,814 | $1,814 |
| Architectural engineering | $0 | $9,400 |
| Initial advertising — Paid to Fastsigns National Advertising Council, Inc. before registering for initial training. | $14,500 | $14,500 |
| Travel, lodging, meals and two employees' costs for initial training | $3,525 | $7,565 |
| Administrative supplies — Includes $300 for an optional credit card terminal. | $1,113 | $2,440 |
| Business licenses, permits and permit expediter — Permit expediter alone is estimated at $1,000 to $5,000. | $1,035 | $7,220 |
| Insurance deposits and premiums (first 3 months) | $720 | $1,315 |
| Professional fees — Includes a site survey where the landlord does not pay for one. | $500 | $8,112 |
| Additional funds (3 months) — Excludes salaries, benefits and personal living expenses for the franchisee, Managing Principal or managers, and excludes debt service. | $35,000 | $55,000 |
Source for every row: the Item 7 estimated-initial-investment table of 2026 Franchise Disclosure Document — FASTSIGNS International, Inc. (table begins PDF p. 36) — rows inherit the table's citation rather than carrying fifteen identical ones.
Other formats disclosed in Item 7 (2)
| Format | Low | High | Fee |
|---|---|---|---|
| Conversion Franchise (existing sign business converting to the FASTSIGNS System) | $95,968 | $229,477 | $49,750 |
| Co-Brand Center (FASTSIGNS Center operated inside an existing complementary business) | $89,068 | $219,477 | $49,750 |
Ongoing fees
FDD Item 6Royalty
6% of gross sales Disclosed
- Source
- 2026 Franchise Disclosure Document — FASTSIGNS International, Inc.
- Document
- FDD 2026, issued 2026-05-01
- Item
- Item 6 — Service Fee
- Page
- PDF p. 22
- Obtained
- Wisconsin Department of Financial Institutions — Franchise Registration Search, file 641543
Called the Service Fee. A new Center pays 6% of Gross Sales from opening; from the first full calendar month the fee is the greater of $1,250 per month or 6% of Gross Sales, so a monthly minimum applies regardless of sales. Conversion and Co-Brand franchises that meet a $250,000 prior-year sales threshold pay 3% (subject to the same $1,250 monthly minimum) for the first 12 months and 6% thereafter. Franchisees in good standing can earn an annual rebate that steps the effective rate down on sales bands above $1,578,176, reaching 3.75% on sales above $10,258,152. A non-compliance fee of 2.5% of Gross Sales (2% to the franchisor, 0.5% to the ad fund) may be charged while an uncured default continues.
Brand advertising fund
2% of gross sales Disclosed
- Source
- 2026 Franchise Disclosure Document — FASTSIGNS International, Inc.
- Document
- FDD 2026, issued 2026-05-01
- Item
- Item 6 — Ad Fee
- Page
- PDF p. 23
- Obtained
- Wisconsin Department of Financial Institutions — Franchise Registration Search, file 641543
Paid to the Fastsigns National Advertising Council, Inc., which administers the Ad Fund. Conversion and Co-Brand franchises meeting the sales threshold pay 1% for the first 12 months, then 2%. The same annual rebate bands can reduce the effective Ad Fee to 1.00% on the highest sales band.
Local marketing
$850/month Disclosed
- Source
- 2026 Franchise Disclosure Document — FASTSIGNS International, Inc.
- Document
- FDD 2026, issued 2026-05-01
- Item
- Item 8
- Page
- PDF p. 51
- Obtained
- Wisconsin Department of Financial Institutions — Franchise Registration Search, file 641543
Minimum required local digital advertising spend through the franchisor's designated agency, set at a level intended to hold a paid-search impression share of at least 75%; if a lower amount achieves that share the difference must be spent on other digital channels or SEO. Subject to change on 60 days' notice. Separate from this, a one-time initial advertising spend of $14,500 (new Center) or $10,500 (Conversion, Co-Brand or Resale Center) is required before training, and a virtual sales assistant email prospecting program from a designated vendor must be maintained at the franchisee's cost.
Core requirements shown separately; caps, credits and conditions may overlap. Check the full schedule for technology, cooperative, transfer and other charges.
View all recurring fees and conditions
| Royalty | 6% of gross sales Disclosed
Called the Service Fee. A new Center pays 6% of Gross Sales from opening; from the first full calendar month the fee is the greater of $1,250 per month or 6% of Gross Sales, so a monthly minimum applies regardless of sales. Conversion and Co-Brand franchises that meet a $250,000 prior-year sales threshold pay 3% (subject to the same $1,250 monthly minimum) for the first 12 months and 6% thereafter. Franchisees in good standing can earn an annual rebate that steps the effective rate down on sales bands above $1,578,176, reaching 3.75% on sales above $10,258,152. A non-compliance fee of 2.5% of Gross Sales (2% to the franchisor, 0.5% to the ad fund) may be charged while an uncured default continues. Called the Service Fee. A new Center pays 6% of Gross Sales from opening; from the first full calendar month the fee is the greater of $1,250 per month or 6% of Gross Sales, so a monthly minimum applies regardless of sales. Conversion and Co-Brand franchises that meet a $250,000 prior-year sales threshold pay 3% (subject to the same $1,250 monthly minimum) for the first 12 months and 6% thereafter. Franchisees in good standing can earn an annual rebate that steps the effective rate down on sales bands above $1,578,176, reaching 3.75% on sales above $10,258,152. A non-compliance fee of 2.5% of Gross Sales (2% to the franchisor, 0.5% to the ad fund) may be charged while an uncured default continues. |
|---|---|
| Advertising / brand fund | 2% of gross sales Disclosed
Paid to the Fastsigns National Advertising Council, Inc., which administers the Ad Fund. Conversion and Co-Brand franchises meeting the sales threshold pay 1% for the first 12 months, then 2%. The same annual rebate bands can reduce the effective Ad Fee to 1.00% on the highest sales band. Paid to the Fastsigns National Advertising Council, Inc., which administers the Ad Fund. Conversion and Co-Brand franchises meeting the sales threshold pay 1% for the first 12 months, then 2%. The same annual rebate bands can reduce the effective Ad Fee to 1.00% on the highest sales band. |
| Required local marketing | $850/month Disclosed
Minimum required local digital advertising spend through the franchisor's designated agency, set at a level intended to hold a paid-search impression share of at least 75%; if a lower amount achieves that share the difference must be spent on other digital channels or SEO. Subject to change on 60 days' notice. Separate from this, a one-time initial advertising spend of $14,500 (new Center) or $10,500 (Conversion, Co-Brand or Resale Center) is required before training, and a virtual sales assistant email prospecting program from a designated vendor must be maintained at the franchisee's cost. Minimum required local digital advertising spend through the franchisor's designated agency, set at a level intended to hold a paid-search impression share of at least 75%; if a lower amount achieves that share the difference must be spent on other digital channels or SEO. Subject to change on 60 days' notice. Separate from this, a one-time initial advertising spend of $14,500 (new Center) or $10,500 (Conversion, Co-Brand or Resale Center) is required before training, and a virtual sales assistant email prospecting program from a designated vendor must be maintained at the franchisee's cost. |
| Technology / software | $175/month Disclosed
Tech Fee payable to the franchisor from opening; the franchisor may raise it on 90 days' notice and may add fees for other licensed software. Separate technology costs are paid to third parties: CoreBridge center management software (about $299 per month after the initial two-year prepaid package, with the upgraded EVO version expected at roughly $309 to $449 per month) and Google Workspace licences beyond the two complimentary Enterprise Basic seats. Tech Fee payable to the franchisor from opening; the franchisor may raise it on 90 days' notice and may add fees for other licensed software. Separate technology costs are paid to third parties: CoreBridge center management software (about $299 per month after the initial two-year prepaid package, with the upgraded EVO version expected at roughly $309 to $449 per month) and Google Workspace licences beyond the two complimentary Enterprise Basic seats. |
| Advertising cooperative | Not disclosed in the reviewed source Not disclosedNot disclosed in the reviewed source. We did not find this value in 2026 Franchise Disclosure Document — FASTSIGNS International, Inc.; we do not fill gaps with estimates or third-party figures. Item 6 describes a single national Ad Fund administered by the Fastsigns National Advertising Council, Inc.; no regional advertising cooperative contribution is disclosed. |
| Transfer fee | $24,875–$49,750 one-time Disclosed
The greater of 50% of the then-current initial franchise fee or 2% of the total gross sales price of the transferred business, capped at 100% of the then-current initial franchise fee, plus broker fees and the franchisor's out-of-pocket costs. Values shown apply the current $49,750 initial fee: a $24,875 floor and a $49,750 cap. The franchisor may discount or waive the fee for transfers to a controlled entity or an immediate family member. A separate optional Resale Consulting Fee of $15,000 applies if the franchisor is asked to market the business. The greater of 50% of the then-current initial franchise fee or 2% of the total gross sales price of the transferred business, capped at 100% of the then-current initial franchise fee, plus broker fees and the franchisor's out-of-pocket costs. Values shown apply the current $49,750 initial fee: a $24,875 floor and a $49,750 cap. The franchisor may discount or waive the fee for transfers to a controlled entity or an immediate family member. A separate optional Resale Consulting Fee of $15,000 applies if the franchisor is asked to market the business. |
| Renewal fee | $24,875 one-time Disclosed
Stated as 50% of the then-current initial franchise fee, payable on signing the renewal franchise agreement; $24,875 at the current $49,750 fee. At least eight months' notice, décor remodelling and equipment upgrades are also required. Stated as 50% of the then-current initial franchise fee, payable on signing the renewal franchise agreement; $24,875 at the current $49,750 fee. At least eight months' notice, décor remodelling and equipment upgrades are also required. |
| Royalty + ad fund (% of sales) | 8% Derived
|
Fee schedule (25 fees; 15 verified against the source, 10 single-pass)
Every recurring, conditional and one-time fee found in this FDD's Item 6 table (plus mandatory recurring costs disclosed in Items 7/11), each cited to its page and carrying its verification status: verified means two independent readings agreed or a tie-break re-inspection of the page decided it; single-pass means one reading captured it and it has not been independently confirmed (permitted only for fees that cannot move modeled economics — see the materiality rule). Amounts marked “not stated” are charged at then-current rates the FDD does not quantify and are never modeled as $0.
| Fee | Amount | Frequency | Mandatory | Verification | Cite | Notes |
|---|---|---|---|---|---|---|
| Service Fee | 6% of gross sales (min $1,250/monthly) | monthly | Yes | verified (tie-break) | Item 6, p. 22 | 6% from opening for a new Franchised Business. A Conversion Franchise or Co-Brand Franchised Business meeting the $250,000 Minimum Sales Threshold pays 3% for the first 12 months (separate entry), then 6% from month 13. The Royalty Rebate applies only from the first full calendar year at the standard 6%/2% rates and only if the franchisee is in Good Standing throughout the year and on December 31. Rebate bands printed on page 32 (Item 6 Note 2); the bands may be re-indexed annually to CPI or FASTSIGNS same-center sales growth, whichever is higher. Calculator audit 2026-09-03: Documents the FDD-established mechanics of the 7-band rebate schedule for completeness, as the audit's tiered-fee check requires; the calculator deliberately keeps model_treatment at percent_of_revenue (flat 6% billed monthly per Item 6's own text, 'the greater of $1,250 or 6% of Gross Sales, continuing through the end of the term') because the bands are an annual cash-back true-up on top of that billed rate, not a different monthly billing rate — this metadata is inert under the current treatment and does not change today's computed total, but records the correct calc_method/tier_period should the model ever surface the post-rebate effective rate. (p. 32; "we will calculate a rebate payment ("Rebate Payment" |
| Service Fee (Conversion Franchise / Co-Brand reduced rate) | 3%–6% of gross sales (min $1,250/monthly) | monthly | No | verified (tie-break) | Item 6, p. 22 | Available only to a Conversion Franchise or Co-Brand Franchised Business whose Existing Business had at least $250,000 of Gross Sales in the 12 months before the Effective Date (the Minimum Sales Threshold) and only while the franchisee is in Good Standing; otherwise the standard new-Center 6% applies from opening. Not available on the purchase of a Resale Center. Also stated in Item 6 Note 2 (page 30). |
| Minimum monthly Service Fee before operations commence | $2,500 | monthly | No | verified (tie-break) | Item 6, p. 30 | Applies only where a Conversion Franchise or Co-Brand Franchised Business does not commence operations within 90 days after the Effective Date of its agreement; runs until operations commence. |
| Ad Fee | 2% of gross sales | monthly | Yes | verified (tie-break) | Item 6, p. 23 | 2% from opening for a new Franchised Business; a Conversion Franchise or Co-Brand Franchised Business meeting the Minimum Sales Threshold pays 1% for the first 12 months (separate entry), then 2%. The same Good Standing and full-standard-year conditions govern the rebate. Rebate bands printed on page 32. Calculator audit 2026-09-03: Same rebate table (PDF p.32) covers both the Service Fee and the Ad Fee; same reasoning as service-fee-royalty above — documented for completeness, inert under the current (and correct) percent_of_revenue billed-rate treatment. (p. 32; "we will calculate a rebate payment ("Rebate Payment") to you based on each incre") |
| Ad Fee (Conversion Franchise / Co-Brand reduced rate) | 1%–2% of gross sales | monthly | No | verified (tie-break) | Item 6, p. 23 | Same Minimum Sales Threshold ($250,000 prior-year Gross Sales of the Existing Business) and Good Standing conditions as the reduced Service Fee; provided by Conversion Addendum or under the Co-Brand Franchise Agreement. Not available on a Resale Center. |
| Required local digital advertising spend | $850 (min $850/monthly) | monthly | Yes | verified (2-pass) | Item 8, p. 51 | If a lower spend still achieves the 75% impression share, the difference must be redirected to other digital channels or SEO. Also described in Item 11 (page 63-64). |
| Technology Fee (Tech Fee) | $175 | monthly | Yes | verified (2-pass) | Item 6, p. 24 | Franchisor may increase on 90 days' written notice and may add fees for other licensed software. |
| Interest | 18% of other | varies | No | verified (tie-break) | Item 6, p. 24 | Charged only on amounts not paid when due. |
| Non-Compliance Fee | 2.5% of gross sales | varies | No | verified (tie-break) | Item 6, p. 25 | Charged at the franchisor's option only after the franchisee is in default and fails to timely cure; billed monthly alongside the Service Fee and continues until the default is cured. |
| Relocation Design Management Fee | $1,000 | per event | No | single-pass | Item 6, p. 25 | Optional; only if franchisee relocates and elects to use the franchisor's Design Development coordination service. [Listed by one verification pass only (A); not independently confirmed.] |
| Transfer Fee | Not stated | one time | No | single-pass | Item 6, p. 26 | Charged on transfer of the Franchise Agreement or a controlling ownership interest; may be discounted/waived for transfers to an entity the franchisee controls or an immediate family member. [Listed by one verification pass only (A); not independently confirmed.] |
| Resale Consulting Fee | $15,000 | one time | No | single-pass | Item 6, p. 26 | Only if franchisee requests franchisor's assistance marketing the business for resale and franchisor agrees to provide it. [Listed by one verification pass only (A); not independently confirmed.] |
| Renewal Fee | Not stated | one time | No | single-pass | Item 6, p. 26 | Paid on signing the Renewal Franchise Agreement; requires 8 months' notice, remodel/upgrade, and current-form agreement. [Listed by one verification pass only (A); not independently confirmed.] |
| Indemnification | Not stated | varies | Conditional | single-pass | Item 6, p. 27 | Owed when franchisee's actions cause a loss to the franchisor (see Item 9). [Listed by one verification pass only (A); not independently confirmed.] |
| Attorneys' Fees and Costs and Collection Agency Costs | Not stated | varies | Conditional | single-pass | Item 6, p. 27 | Owed if franchisor incurs legal expenses or collection agency fees due to franchisee's breach. [Listed by one verification pass only (A); not independently confirmed.] |
| Post-Termination and Expiration Expenses | Not stated | varies | Conditional | single-pass | Item 6, p. 27 | Owed if franchisee fails to de-identify the premises after termination/expiration and franchisor makes the changes itself. [Listed by one verification pass only (A); not independently confirmed.] |
| Audit Fee | Not stated | per event | No | single-pass | Item 6, p. 27 | Charged only if franchisee has understated amounts owed by more than 2%. [Listed by one verification pass only (A); not independently confirmed.] |
| Google Workspace Accounts | $25 (min $25/monthly) | monthly | Yes | verified (tie-break) | Item 6, p. 28 | Mandatory; cost scales with headcount because each employee must hold a Google Workspace account. Pricing, billing method and payment frequency are subject to change. Restated in Item 11 (page 74) at the same rates. |
| Franchise Convention registration/expenses | Not stated | varies | Yes | single-pass | Item 6, p. 28 | Attendance required at least once every 2 years for the franchisee/Managing Principal/Key Management Employee; franchisee bears registration fee and expenses. [Listed by one verification pass only (A); not independently confirmed.] |
| Optional eCommerce Catalog Participation Fee | Tiered (base $199) | monthly | No | verified (tie-break) | Item 6, p. 29 | Optional; payable only if the franchisee elects to participate and signs the eCommerce Catalog Agreement. |
| Early Termination Damages | Not stated | one time | No | single-pass | Item 6, p. 29 | Only if franchisor terminates for franchisee's breach. [Listed by one verification pass only (A); not independently confirmed.] |
| CoreBridge Management System subscription | $299–$449 (min $299/monthly) | monthly | Yes | verified (tie-break) | Item 11, p. 72 | New Franchised Businesses, Conversion Franchises and Co-Brand Franchised Businesses must buy a 2-year prepaid package (currently approximately $3,500, expected to rise to approximately $5,500 for purchases on or after January 1, 2027) covering months 1-24; after that period, and immediately for Resale Centers, the franchisee pays CoreBridge directly at then-current rates. Use of CoreBridge is mandatory and the franchisor reserves the right to require upgrades, including the phased EVO transition. Calculator audit 2026-09-03: amount_type is 'variable', so the engine's requires_assumption seed logic (which only auto-seeds 'fixed' amount_type or a sales-basis percent) ignores the disclosed $299 value without an explicit `minimum`; this mandatory, material, verified fee was being silently excluded despite the model_note's stated intent to assume ~$299/month. (p. 72; "you will pay CoreBridge directly for continued use of the CoreBridge Management ") |
| QuickBooks Online accounting software | $115 | monthly | Yes | verified (tie-break) | Item 11, p. 72 | Mandatory; the franchisor may modify the required version specification from time to time and rates are then-current. |
| Virtual sales assistant customer prospecting email campaign | $1,380 | annual | Yes | verified (2-pass) | Item 11, p. 63 | Pricing is 'subject to change.' |
| Initial Advertising and Promotional Materials | $14,500 | one time | Yes | verified (tie-break) | Item 6, p. 24 | Due on signing the Franchise Agreement; for new Centers, Conversion Franchises and Co-Brand Franchised Businesses it is paid to Fastsigns National Advertising Council, Inc. before registering for initial training. Separate from and in addition to the Ad Fee, and not paid into the Ad Fund. Item 11 (page 63) restates the same minimum initial local marketing spend. |
Fees payable to the franchisor at signing for a new Center are the $49,750 initial franchise fee plus a $14,500 marketing introduction plan fee paid to the Fastsigns National Advertising Council, Inc. before training registration. Other charges disclosed in Item 6 are event- or breach-driven rather than recurring: a $1,000 relocation design management fee, indemnification, attorneys' and collection costs, post-termination de-identification expenses, audit costs where amounts owed are understated by more than 2%, and early termination damages calculated from average monthly royalty and advertising contributions multiplied by up to 36 months.
Financial performance (Item 19)
What the franchisor actually disclosedWho is represented: The main tables cover the 690 FASTSIGNS Centers that were open and in continuous operation in the United States for the entire calendar year ended December 31, 2025 — 650 Full-Service Centers, 9 Satellite Centers and 31 Co-Brand Centers. All are franchised; the franchisor operates no Centers. Excluded are the 83 international Centers, U.S. Centers that did not operate for the full year (710 U.S. Centers were open at year end and 793 were open worldwide), and any Center that did not report sales for all twelve months. The expense and EBITDA tables are narrower still: they cover only the 307 Centers that submitted 2025 financial statements, excluding all Co-Brand Centers and the 352 other reporting Centers whose expense data had not been received.
Qualifications: All sales figures are gross sales, not profit, and come from unaudited franchisee-submitted sales reports that the franchisor says it has not independently verified or confirmed as GAAP-compliant. The main tables exclude the 83 international Centers and any U.S. Center that did not operate and report for all twelve months of 2025. Averages are pulled upward by a small number of very large Centers: the franchisor itself refers to 'Outlier Centers', the highest Center reported $9,109,903, and only 34.8% of Centers reached the $1,088,585 average, while 179 of 690 Centers reported $500,000 or less. The expense, EBITDA and principal's-benefit tables rest on just 307 Centers that voluntarily submitted 2025 financial statements, exclude all Co-Brand Centers, and have average gross sales of $1,393,118 — well above the 690-Center system average — so those margins are drawn from a stronger-than-average and self-selected group. The outside-sales-professional study is likewise self-selected and self-reported. The franchisor notes that the franchise agreements governing the Centers in the analysis differ from the agreement offered in this FDD. Two internal inconsistencies appear: the outside-sales study states a high of $84,763,626, which is inconsistent with the $9,109,903 system high, and the 2024 outside-sales-professional narrative does not match its own table.
View full Item 19 disclosure and tables
FASTSIGNS makes a substantial financial performance representation. It reports average and median annual gross sales for the 690 U.S. Centers that operated continuously through calendar 2025, breaks those out for Full-Service and Co-Brand formats, shows the distribution across seven sales bands, and gives top- and bottom-quartile figures. It goes further than most FDDs by publishing an average and median profit-and-loss, including EBITDA and a 'total franchisee principal's benefit' line. What it does not show is a profit figure for the system as a whole: the cost and EBITDA tables cover only the 307 Centers that voluntarily supplied financial statements, a group whose average sales run roughly 28% above the system average, and Co-Brand Centers are excluded from them entirely. Nothing in Item 19 is audited, and none of it is a projection of what a new Center would earn. A prospective buyer should read the sales distribution — a median of $823,726 against a mean of $1,088,585, with 179 Centers at or below $500,000 — alongside the headline averages.
| Metric | Subset | Value | Units | Period | Cite |
|---|---|---|---|---|---|
| Gross sales — all U.S. Centers operating the full year 34.8% of units met or exceeded | System (all Center types) Average | $1,088,585 | 690 | CY2025 | FDD p.105 |
| Gross sales — all U.S. Centers operating the full year | System (all Center types) Median | $823,726 | 690 | CY2025 | FDD p.105 |
| Gross sales — Full-Service Centers only 35.1% of units met or exceeded Full-Service is the format normally offered under this FDD. | Full-Service Centers Average | $1,109,299 | 650 | CY2025 | FDD p.105 |
| Gross sales — Full-Service Centers only | Full-Service Centers Median | $831,152 | 650 | CY2025 | FDD p.105 |
| Highest reported gross sales among the 690 Centers | System (all Center types) High | $9,109,903 | 690 | CY2025 | FDD p.105 |
| Lowest reported gross sales among the 690 Centers | System (all Center types) Low | $39,356 | 690 | CY2025 | FDD p.105 |
| Centers reporting gross sales of $300,000 or less Lowest band of the Table 2 distribution. The full distribution of the 690 Centers is: 74 at $0–$300,000; 105 at $300,001–$500,000; 239 at $500,001–$1,000,000; 192 at $1,000,001–$2,000,000; 49 at $2,000,001–$3,000,000; 29 at $3,000,000–$7,000,000; and 2 over $7,000,000. The bands sum to 690. | System (all Center types) Count | 74 | 690 | CY2025 | FDD p.106 |
| Gross sales — top quartile Full-Service Centers by sales 34.1% of units met or exceeded Range within this quartile: $9,109,903 high, $1,274,916 low. | Top quartile Full-Service Centers Quartile avg. | $2,318,938 | 173 | CY2025 | FDD p.108 |
| Gross sales — top quartile Full-Service Centers by sales | Top quartile Full-Service Centers Quartile median | $1,920,129 | 173 | CY2025 | FDD p.108 |
| Gross sales — lowest quartile Full-Service Centers by sales 54.3% of units met or exceeded Range within this quartile: $528,290 high, $39,356 low. | Lowest quartile Full-Service Centers Quartile avg. | $377,256 | 173 | CY2025 | FDD p.108 |
| Gross sales — lowest quartile Full-Service Centers by sales | Lowest quartile Full-Service Centers Quartile median | $351,501 | 173 | CY2025 | FDD p.108 |
| Gross sales — Co-Brand Centers 25.8% of units met or exceeded Range: $1,917,265 high, $75,277 low. | Co-Brand Centers Average | $721,909 | 31 | CY2025 | FDD p.108 |
| Gross sales — Co-Brand Centers | Co-Brand Centers Median | $450,132 | 31 | CY2025 | FDD p.108 |
| Gross sales — Full-Service Centers employing a full-time outside sales professional Self-selected subset: 223 Centers, described as 34.3% of Full-Service Centers open and operational in the U.S. for the full year, whose principals told the franchisor they employed a full-time outside sales professional who was not a principal for the whole period. 60.5% of them met or exceeded the system average and 78.6% the system median. | Centers open 1+ year with a full-time outside sales professional Average | $1,705,071 | 223 | CY2025 | FDD p.109 |
| Gross sales — Full-Service Centers employing a full-time outside sales professional | Centers open 1+ year with a full-time outside sales professional Median | $1,249,649 | 223 | CY2025 | FDD p.109 |
| Gross sales — Centers submitting 2025 financial statements (benchmark survey) This subset has materially higher average sales than the full 690-Center population, so its expense and EBITDA percentages are not representative of the whole system. Range: $9,122,624 high, $104,543 low. | 307 Centers in the 2025 Financial Benchmark Survey Average | $1,393,118 | 307 | CY2025 | FDD p.112 |
| Gross sales — Centers submitting 2025 financial statements (benchmark survey) | 307 Centers in the 2025 Financial Benchmark Survey Median | $1,037,880 | 307 | CY2025 | FDD p.112 |
| Cost of goods as a share of gross sales Mean cost of goods was $374,223. | 307 Centers in the 2025 Financial Benchmark Survey Average | 26.9% | 307 | CY2025 | FDD p.112 |
| Labour expense (including the franchisee principal) as a share of gross sales Mean labour expense was $500,553, which includes the principal's salary. | 307 Centers in the 2025 Financial Benchmark Survey Average | 35.9% | 307 | CY2025 | FDD p.112 |
| Gross sales generated by outside sales professionals in their first 12 months (hired 2024) Table figures used. The narrative paragraph immediately above the table states 105 professionals, an average of $339,995 and a median of $290,216 for the same 2024 cohort, which does not match the table (104, $341,874, $291,425). Median per the table was $291,425; range $24,911 to $1,547,535. This measures sales attributed to an employee, not to a Center. | Outside sales professionals hired in 2024 Average | $341,874 | 104 | First 12 months in role | FDD p.110 |
Disclosed cost and profit figures
These figures are disclosed by the franchisor for the population stated in each row — often a subset (company-owned units, or franchisees who chose to report). They frequently exclude owner compensation, rent, debt service, taxes or royalties. They are not a prediction of your results.
| Metric | Subset | Value | Units | Period | Cite |
|---|---|---|---|---|---|
| EBITDA — Centers submitting 2025 financial statements 13.6% of gross sales on average; 91 of the 307 Centers met or exceeded this figure. Unaudited and self-reported. | 307 Centers in the 2025 Financial Benchmark Survey Average | $189,585 | 307 | CY2025 | FDD p.112 |
| EBITDA — Centers submitting 2025 financial statements 10.5% of gross sales at the median. | 307 Centers in the 2025 Financial Benchmark Survey Median | $109,088 | 307 | CY2025 | FDD p.112 |
| Total franchisee principal's benefit 22.3% of gross sales; the median was $197,875 (19.1%). The franchisor does not define the components of this measure beyond showing the principal's salary of $120,754 mean within labour expense. | 307 Centers in the 2025 Financial Benchmark Survey Average | $310,338 | 307 | CY2025 | FDD p.112 |
| EBITDA — top 25% of reporting Centers by profitability 23.7% of gross sales; average gross sales for this group were $1,704,288. Selected on profitability, so this is the best-performing quarter of a subset that itself has above-average sales. | Top 25% on profitability (77 Centers) Average | $404,150 | 77 | CY2025 | FDD p.113 |
| EBITDA — lowest 25% of reporting Centers by profitability Average EBITDA was negative $365 (0.0% of sales) on average gross sales of $927,789; the median was $685. Average total principal's benefit in this group was $53,845. | Lowest 25% on profitability (77 Centers) Average | −$365 | 77 | CY2025 | FDD p.114 |
System health (Item 20)
Outlets, openings, exits and transfers by fiscal year · U.S. onlyView detailed Item 20 tables and source notes
| Fiscal year | Start | Opened | Terminated | Not renewed | Reacquired | Ceased — other | End | Transfers | Company-owned (end) |
|---|---|---|---|---|---|---|---|---|---|
| 2023 | 677 | 17 | 1 | 0 | 0 | 4 | 689 | 26 | 0 |
| 2024 | 689 | 20 | 4 | 0 | 0 | 0 | 705 | 34 | 0 |
| 2025 | 705 | 17 | 10 | 1 | 0 | 1 | 710 | 36 | 0 |
Disclosed 2026 Franchise Disclosure Document — FASTSIGNS International, Inc., Item 20, Tables 1–3 (PDF p. 116). Counts are United States only; Table No. 1 is captioned as a U.S. outlet summary and the 83 international Centers referenced in Item 19 are not included. All three Table No. 3 rows foot exactly. The system grew in each of the three years but the pace slowed: net +12 in 2023, +16 in 2024 and +5 in 2025. Closures rose sharply in 2025 — 10 terminations, 1 non-renewal and 1 other cessation, against 12 openings' worth of growth, versus a single termination in 2023 and four in 2024. There have been no company-owned outlets in any of the three years and none were reacquired from franchisees. Transfers between franchisees rose each year, from 26 in 2023 to 36 in 2025, equal to about 5% of the system in 2025.
Source data notes (8) — inconsistencies found in the FDD itself during verification
Our verification re-reads every table. Where the FDD's own printed tables disagree, we document the discrepancy rather than silently "fixing" it. Classes: B = arithmetic error in the source's derived column; C = the printed tables genuinely disagree; D = a legitimate definitional difference (e.g., transfers netted, explained by a footnote); E = unresolved ambiguity. Figures a material C/E issue puts in doubt are excluded from our derived metrics, scores and rankings.
- [C/minor] Table No. 3 2023: The 47 state rows for fiscal 2023 sum to 678 outlets at start of year but the printed Totals row shows 677. The Pennsylvania 2023 row is the cause: it prints 31 at start, zeros in every movement column (opened, terminations, non-renewals, reacquired, ceased other) and 30 at end, so the row itself does not foot. The page image confirms the printed figures are 31 and 30, so this is not a text-layer misread. — The printed TOTAL of 677 is right and the state cell is wrong: Table No. 1 also shows 677 franchised outlets at the start of 2023, the 2023 Totals row foots (677 + 17 - 1 - 4 = 689), and the 2023 end column of state cells sums correctly to 689 which is also the 2024 start in both tables. Pennsylvania's 2024 row starts at 30, so the true Pennsylvania 2023 start is 30, and either the '31' is a typo or one Pennsylvania closure went unrecorded in the movement columns.
- [C/minor] Table No. 5 2025: The 'Franchise Agreements Signed But Outlet Not Open' column sums to 24 across the 36 listed states but the printed Totals row shows 25 (off by one). The adjacent 'Projected Franchised New Outlets in the Next Fiscal Year' column foots exactly (22), and the company-operated column is all zeros. Verified on the page image. — Genuine printed inconsistency in a forward-looking table. The site's total-row metrics come from Tables 1 and 3, which are unaffected; treat the signed-not-open pipeline as 24-25 and cite the printed 25 with the caveat. Exhibit G-1 lists the signed-but-not-open franchisees and would settle it, but it is outside the extracted item text.
- [D/minor] Table No. 1 / Table No. 3: Both passes report Table 1 and Table 3 as fully consistent for 2023-2025. Re-checked independently: franchised start/end are 677/689, 689/705 and 705/710 in both tables; each Table 3 Totals row foots (677+17-1-4=689; 689+20-4=705; 705+17-10-1-1=710); each year's start equals the prior year's end; Table 1 company-owned and all of Table No. 4 are zeros, matching Item 1. — No discrepancy. The TOTAL-row figures the site uses for units, growth, openings and closures are corroborated across both tables and across years; net change of +12, +16 and +5 stands.
- [D/minor] Table No. 1 / Item 19 2025: Item 20's tables are titled 'UNITED STATES OUTLET SUMMARY' and end 2025 at 710 outlets, while Item 19 reports 793 FASTSIGNS Centers open system-wide at December 31, 2025, of which 83 were international. — A disclosed scope difference, not an inconsistency: 710 U.S. + 83 international = 793 exactly. Item 20 unit counts are U.S.-only and should be labelled as such wherever they sit next to Item 19 system-wide figures.
- [D/minor] Table No. 3 / Item 19 2025: Item 19 says 710 U.S. Centers were open at year-end but only 690 were open and in continuous operation for the whole of 2025, a 20-Center gap. — Definitional, and consistent with Table No. 3: 17 Centers opened during 2025 and 12 left the system (10 terminations, 1 non-renewal, 1 ceased for other reasons), so a 20-unit gap between year-end count and full-year continuous operators is expected. Item 19 averages therefore rest on a smaller base than the 710 unit count.
- [D/minor] Table No. 2 / Table No. 3: Table No. 2 records heavy resale activity (26 transfers in 2023, 34 in 2024, 36 in 2025, roughly 5% of the U.S. system per year and rising) while Table No. 3 shows zero outlets reacquired by the franchisor in all three years. — Not a conflict: Table No. 2 counts transfers from one franchisee to another, which never touch Table No. 3's reacquired-by-franchisor column and do not open or close an outlet. The zero reacquisition figure is corroborated by Table No. 4, which shows the franchisor operating no Centers at any point. Transfer volume should be surfaced as its own churn signal, never netted into attrition.
- [E/minor] Table No. 3: Neither the Item 20 narrative nor any table note states whether a relocation is counted as a closure plus a reopening, or whether transfers are netted out of the opened and closed columns. — Unresolved on the face of the document; the source gives no definition to test. The three Totals rows foot exactly as printed with transfers excluded, which is consistent with (but does not prove) transfers and relocations being outside these columns. Derived openings and closures should be described as reported, not adjusted.
- [D/minor] Table No. 3 2025: Terminations rise from 1 (2023) and 4 (2024) to 10 in 2025, with Oklahoma alone contributing 3, and 2025 carries the system's first non-renewal (1, California). — No inconsistency; the figures foot and are corroborated by Item 3, which discloses that the franchisor terminated the franchise agreements of Oklahoma franchisee Oklahoma Visual Graphics, LLC on March 6, 2025 after uncured defaults and filed a still-pending AAA arbitration. Attrition commentary should flag the concentration rather than treat 2025 as a systemic trend break.
Company-owned outlets (Table 4)
| Year | Start | Opened | Reacquired from franchisee | Closed | Sold to franchisee | End |
|---|---|---|---|---|---|---|
| 2023 | 0 | 0 | 0 | 0 | 0 | 0 |
| 2024 | 0 | 0 | 0 | 0 | 0 | 0 |
| 2025 | 0 | 0 | 0 | 0 | 0 | 0 |
Read: How to read Item 20.
Ownership and operations
Items 11, 12, 15, 17Manager-run permitted Disclosed
- Source
- 2026 Franchise Disclosure Document — FASTSIGNS International, Inc.
- Document
- FDD 2026, issued 2026-05-01
- Item
- Item 15
- Page
- PDF p. 85
- Obtained
- Wisconsin Department of Financial Institutions — Franchise Registration Search, file 641543
Not a passive investment at the outset: the franchisee (if an individual) or the Managing Principal must devote full time, best efforts and constant personal attention to day-to-day operations for at least the first six months after opening. After that period the owner may step back only if a designated Key Management Employee devotes full time to running the business; that person need not hold equity but must sign a non-compete. The Managing Principal must hold at least a 25% ownership interest. The franchisee must also designate a graphic designer and a visual communications specialist who complete initial training, and must hire an outside sales professional within 120 days of opening and keep one for the rest of the term.
View operating requirements, territory and contract term
| Owner involvement (Item 15) | Manager-run permitted Disclosed
Not a passive investment at the outset: the franchisee (if an individual) or the Managing Principal must devote full time, best efforts and constant personal attention to day-to-day operations for at least the first six months after opening. After that period the owner may step back only if a designated Key Management Employee devotes full time to running the business; that person need not hold equity but must sign a non-compete. The Managing Principal must hold at least a 25% ownership interest. The franchisee must also designate a graphic designer and a visual communications specialist who complete initial training, and must hire an outside sales professional within 120 days of opening and keep one for the rest of the term. Not a passive investment at the outset: the franchisee (if an individual) or the Managing Principal must devote full time, best efforts and constant personal attention to day-to-day operations for at least the first six months after opening. After that period the owner may step back only if a designated Key Management Employee devotes full time to running the business; that person need not hold equity but must sign a non-compete. The Managing Principal must hold at least a 25% ownership interest. The franchisee must also designate a graphic designer and a visual communications specialist who complete initial training, and must hire an outside sales professional within 120 days of opening and keep one for the rest of the term. |
|---|---|
| Initial training | Initial training runs about two weeks of classroom instruction of up to nine hours a day, plus up to 16 hours of online learning and up to three days of on-site training at an existing FASTSIGNS Center before the classroom portion. Classroom instruction is held at the franchisor's offices in Carrollton, Texas, though it may be delivered at other locations or as live instructor-led virtual training. The franchisee or Managing Principal must attend, as must the designated graphic designer (one week of in-person classroom training) and the visual communications specialist (16 hours of online learning). Assignments and assessments must be passed before in-person training. The franchisor charges no training fee for up to three people but the franchisee bears travel, lodging, meals and wages — estimated at $3,525 to $7,565 in Item 7. The programme is offered 6 to 12 times a year, and an outside sales professional hired later must attend Sales Boot Camp within 12 months of hire at no charge. Disclosed
The Item 11 training table lists roughly 76 classroom hours plus on-the-job hours across computers, management, production, product, sales and marketing, technology and miscellaneous subjects. |
| Multi-unit / development options | No area development or multi-unit development agreement is offered in this document. The franchisor sells single Centers under the Franchise Agreement and charges a reduced initial franchise fee of $24,875 for each additional FASTSIGNS Center. Item 12 states expressly that the franchisee has no options, rights of first refusal or similar rights to acquire additional franchises within its territory or contiguous territories. Two other formats exist for buyers who already run a business: a Conversion Franchise for an existing sign business and a Co-Brand Center inside an existing complementary business, each with a lower total investment and a reduced Service Fee and Ad Fee for the first year. Satellite Centers, which appear in the Item 19 population, are no longer offered. Disclosed
Additional-Center fee from Item 5; format descriptions from Item 1 and Item 7. |
| Territory (Item 12) | The franchisee gets the right to operate one Center at an approved site plus an assigned Territory that for a new Center is drawn to contain a minimum of 4,000 businesses. Protection is limited and conditional: so long as the franchisee complies with the agreement, the franchisor will not place another FASTSIGNS Center in the Territory unless the number of businesses there grows by at least 20%, in which case it may redefine the Territory and authorise another Center. The Territory is not exclusive in any broader sense — the franchisor and other franchisees may solicit customers inside it, the FASTSIGNS National Accounts Program may sell directly to customers there (offering the order to the franchisee first if it is not in default), and the franchisor reserves the right to sell similar products under other marks or through other channels anywhere. Conversion and Co-Brand Territories are trade areas defined by the franchisor and may not contain 4,000 businesses. Relocation requires prior written approval. Disclosed
|
| Initial term | 10 years Disclosed
Ten-year initial term under both the Franchise Agreement and the Co-Brand Franchise Agreement. |
| Renewal | One ten-year renewal term is provided for. To renew, the franchisee must give timely notice (Item 6 specifies at least eight months), keep possession of the premises or find acceptable substitute premises, repair and update the premises and equipment to current standards, have no defaults, pay a renewal fee of 50% of the then-current initial franchise fee, sign a general release where the law allows, and meet current qualification and training requirements. The renewal is on the franchisor's then-current form, which the FDD warns may contain materially different terms, including different fees and territorial rights. Disclosed
|
| Staffing | The Center must be open during normal business hours Monday through Friday; weekend opening is optional. Beyond the owner or Managing Principal, the franchisee must designate a graphic designer and a visual communications specialist who complete initial training, must hire a full-time outside sales professional within 120 days of opening and keep one employed for the balance of the term, and after the first six months must have a full-time Key Management Employee if the owner is not personally running the business. Item 19 identifies employing a full-time outside sales professional as a major driver of sales. Disclosed
|
Risk and legal observations
Items 3, 4, 8, 15, 17 — summarized neutrallyLitigation: 2 matter(s) disclosed Disclosed · Bankruptcy: Disclosure present Disclosed
View legal disclosures, restrictions and guarantees
| Litigation (Item 3) | 2 matter(s) disclosed Disclosed Item 3 discloses two matters. The first is an arbitration the franchisor brought in July 2025 against a former franchisee and its principals and guarantors after terminating their franchise agreements in March 2025 for uncured defaults; the franchisor alleges breach of the franchise agreements and personal guarantees, continued operation of a competing business contrary to post-termination non-competition covenants, unauthorised use of the marks and confidential information, and unpaid amounts. The individual respondents filed a Chapter 7 petition in February 2026, which stayed the arbitration as to them; the arbitration remains pending. The second is a shareholders' derivative suit filed in Delaware in 2020 against Floor & Decor and certain of its officers and directors, one of whom is associated with the franchisor's management; a motion to dismiss was denied in December 2023 and the parties settled in September 2024 with the co-defendants collectively paying $8,000,000. That matter did not concern the FASTSIGNS system. No franchisee-initiated actions against the franchisor are disclosed. |
|---|---|
| Bankruptcy (Item 4) | Disclosure present Disclosed Two matters are disclosed. The franchisor's Vice President of Operations filed a personal Chapter 7 petition in January 2016 in the Northern District of Texas, discharged in September 2016. Separately, TGI Friday's Inc. filed a Chapter 11 petition in November 2024 in the Northern District of Texas; an individual who had been its Senior Vice President and General Counsel left that company in September 2024, before the filing. That case is pending. Neither matter involves the franchisor itself or its parent. |
| Personal guaranty | Required Disclosed
Item 1 states that Managing Principals must be individually bound by certain obligations, including confidentiality and non-competition covenants, and must personally guarantee the franchisee's performance under the Franchise Agreement. The cover page carries a state-required risk warning that a spouse or another individual with legal rights in the franchisee's assets may be required to sign a document making them jointly and severally liable for all financial obligations, potentially putting marital, community and personal assets including a residence at risk. The Item 3 arbitration was brought partly against personal guarantors. |
| Non-compete | During the term, the franchisee, guarantors and personnel may not operate or hold an interest in a similar business other than an Existing Business associated with a Conversion or Co-Brand franchise. After termination or expiry, the franchisee, its Managing Principal and guarantors may not operate or hold an interest in a similar business at the premises, within a 15-mile radius of the premises, or within a 15-mile radius of any FASTSIGNS Center in existence or under construction as of the earlier of the end or transfer of the agreement or the date the Managing Principal ceased to qualify as such. Given the size of the system, the 15-mile radius around every existing Center is a wide restriction. The Item 17 table does not state how long the post-term covenant lasts; state addenda may modify it. Covenants not to compete may also be required from managers, outside sales professionals and other trained personnel. Disclosed
Duration of the post-term covenant is not stated in the Item 17 summary table reviewed here. |
| Transfer restrictions | Any transfer of the Franchise Agreement or a change in ownership of the franchisee entity requires the franchisor's prior written consent, which the agreement says will not be unreasonably withheld. Conditions include paying all amounts owed to the franchisor, the national advertising council and affiliates, not being in default, landlord approval, signing a general release, and paying the transfer fee — the greater of 50% of the then-current initial franchise fee or 2% of the sale price capped at 100% of that fee, plus broker fees and the franchisor's out-of-pocket costs. The transferee must qualify, attend training, sign the then-current agreement and modernise the facility and equipment. The franchisor holds a right of first refusal to match any offer. On the death or permanent disability of the franchisee or Managing Principal, the distributee must be approved or the franchise transferred to an approved party within 12 months. An optional $15,000 resale consulting fee applies if the franchisor is engaged to market the business. Transfers ran at 26, 34 and 36 a year over 2023–2025. Disclosed
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| Termination / non-renewal | The agreement gives the franchisee no stated right to terminate — Item 17 records 'Not Applicable' for termination by franchisee — while the franchisor may terminate for cause. Curable defaults carry short cure periods: 24 hours for unauthorised use of the marks, 10 days for unpaid money owed, and 30 days for other defaults, with no cure right if money is owed twice in any 12-month period. Non-curable defaults include insolvency and bankruptcy, unapproved transfers, knowingly understating gross sales, abandonment, failure to complete initial training, felony conviction, and failure to attend conventions. Instead of terminating, the franchisor may put the franchisee on 'limited services', cutting off the website listing, ad fund services, email, national accounts orders, events, online training, design and real estate support, the resource site, eCommerce and the royalty rebate, and may charge a non-compliance fee of 2.5% of gross sales while the default continues. If the franchisor terminates for breach, early termination damages are payable within 30 days, computed as average monthly royalty and advertising contributions multiplied by the lesser of 36 months or the months remaining in the term. On termination the franchisee must de-identify, and at the franchisor's option assign the premises, equipment, customer lists, graphics files, databases, telephone number, listings and social media accounts. Disclosed
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| Supplier restrictions (Item 8) | Purchasing is tightly controlled. The franchisee must buy the items needed to open from designated suppliers, must buy the counter system, tool racks and other designated items from the franchisor itself, and must buy sign and graphics computers, plotters, printers and laminators from the franchisor or its designated suppliers. Initial inventory, the center graphics package, showroom flooring, substrate cutter, exterior signage and the CoreBridge center management system and hardware also come from the franchisor or designated suppliers, and certain promotional materials must be bought from the national advertising council or its supplier. The franchisor states that purchases from it or from sources it approves or specifies will run 47% to 52% of the cost of establishing the business and 50.9% to 54% of total purchases during operation. In 2025 the franchisor received $959,222 in supplier rebates on products required to open and operate Centers. Of last fiscal year's total revenues of $53,325,587, $922,804 — about 1.7% — came from selling equipment, computer modifications, additional training and other products and services to franchisees; no affiliate derives revenue from such sales, and no officer holds an interest in an approved supplier. Disclosed
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| Dispute resolution | Except for certain claims, all disputes must be arbitrated in Dallas County, Texas, and the venue for all proceedings arising out of the agreement is Dallas County, Texas unless brought by the franchisor. Texas law governs. Claims other than those for non-payment of amounts owed to the franchisor must be brought within one year of occurrence. The cover page carries a state-required risk warning that out-of-state dispute resolution may force a franchisee to accept a less favourable settlement and may cost more than proceeding locally. State addenda and riders in Exhibit K may modify these provisions. Disclosed
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- A minimum monthly Service Fee of $1,250 applies from the first full calendar month of operation regardless of sales; the cover page carries a state-required risk warning that inability to make minimum royalty payments may lead to termination and loss of the investment.
- The cover page carries a state-required risk warning that minimum sales performance levels must be maintained and that failing to do so may cost the franchisee territorial rights, the franchise and the investment. The specific performance thresholds are not set out in the Items reviewed.
- Territorial protection is conditional: the franchisor may authorise another Center inside the Territory once the number of businesses there rises by at least 20%, and the FASTSIGNS National Accounts Program may sell directly to customers within the Territory.
- The franchisee, Managing Principal or Key Management Employee must attend the franchise convention at least once every two years at their own cost; failure to attend conventions is listed as a non-curable default.
- Required ongoing local digital advertising of at least $850 per month through a designated agency, plus a mandatory virtual sales assistant email prospecting subscription, both in addition to the 2% ad fund contribution.
- The franchisee must hire and maintain a full-time outside sales professional from within 120 days of opening — a fixed payroll commitment the FDD ties directly to sales performance.
- Renewal is on the franchisor's then-current form, which the FDD states may contain materially different fees and territorial rights.
- Closures rose in 2025: 10 terminations and 2 other exits against 17 openings, compared with one termination in 2023.
Summaries are neutral paraphrases of the cited document and are not legal advice. Read the full Items in the current FDD and consult a franchise attorney.
Illustrative unit economics
Model estimateModel estimate — not disclosed by the franchisor, not a forecast. Fee lines below come from this brand's verified FDD fee schedule and are computed exactly as disclosed (each line shows its arithmetic). Operating-cost ratios are category placeholders we chose — every one is editable and labeled assumption. Results are illustrative arithmetic, not expected returns. Every figure here belongs to one of five labeled categories — disclosed inputs, model assumptions, unmodeled mandatory fees, user-editable assumptions, and exclusions — defined in our methodology. This brand's Item 19 also discloses some cost or profit data — see the Item 19 section, which takes precedence over any assumption here.
| Line (annual) | Downside | Base | Upside |
|---|---|---|---|
| Revenue (AUV basis) | $377,256 | $1,088,585 | $1,251,873 |
| − Cost of goods / supplies assumption | $113,177 | $326,576 | $375,562 |
| − Payroll (excl. owner) assumption | $113,177 | $326,576 | $375,562 |
| − Occupancy assumption | $26,408 | $76,201 | $87,631 |
| − Other operating expenses assumption | $37,726 | $108,859 | $125,187 |
| − Service Fee disclosed 6% of gross sales = $65,315 |
$22,635 | $65,315 | $75,112 |
| − Ad Fee disclosed 2% of gross sales = $21,772 |
$7,545 | $21,772 | $25,037 |
| − Required local digital advertising spend disclosed $850/month × 12 = $10,200 |
$10,200 | $10,200 | $10,200 |
| − Technology Fee (Tech Fee) disclosed $175/month × 12 = $2,100 |
$2,100 | $2,100 | $2,100 |
| − Google Workspace Accounts assumption $300/yr (seeded from the disclosed floor) |
$300 | $300 | $300 |
| − CoreBridge Management System subscription assumption $3,588/yr (seeded from the disclosed floor) |
$3,588 | $3,588 | $3,588 |
| − QuickBooks Online accounting software assumption $1,380/yr (seeded from the disclosed floor) |
$1,380 | $1,380 | $1,380 |
| − Virtual sales assistant customer prospecting email campaign disclosed $1,380 per year |
$1,380 | $1,380 | $1,380 |
| = Modeled operating result before the items below (EBITDA-style) | $37,640 | $144,340 | $168,833 |
| − Manager compensation assumption | $65,000 | $65,000 | $65,000 |
| = Modeled result after manager compensation | −$27,360 | $79,340 | $103,833 |
| − Illustrative debt service assumption | $34,996 | $34,996 | $34,996 |
| = Illustrative pre-tax cash flow — before taxes, capital expenditures and unmodeled fees | −$62,356 | $44,344 | $68,837 |
| Modeled operating margin | 10% | 13.3% | 13.5% |
This modeled result is not owner income. It excludes: income taxes; capital expenditures and equipment-replacement reserves; working-capital needs; ramp-up losses; owner-specific costs; one-time and per-event fees (transfer, renewal, audit); and 1 mandatory fee(s) whose amounts the FDD does not state (listed below — real outflows are higher by these amounts). It is illustrative arithmetic on stated assumptions, not a promise or forecast of what a franchisee earns.
Mandatory fees disclosed but not quantified — not included in the modeled result: the FDD requires these but states no amount (e.g. billed at "then-current" rates). They are never modeled as $0. If you have a quote or estimate, enter an annual amount to include it as your own assumption:
- Franchise Convention registration/expenses (Item 6, p. 28) — Mandatory recurring obligation (attendance at least biennial) but no dollar figure is disclosed.
Every figure in this table is a model estimate built on the disclosed fee schedule plus labeled assumptions. Excluded: income taxes, owner draw, working-capital swings, capital expenditures, ramp-up losses in year one, one-time and per-event fees (transfer, renewal, audit), and the undisclosed-amount fees listed above. Read AUV vs. EBITDA vs. owner income before using this.
Sources and provenance
Primary source: 2026 Franchise Disclosure Document — FASTSIGNS International, Inc. · issued 2026-05-01. Find the FDD at Wisconsin Department of Financial Institutions — Franchise Registration Search. We cite source pages and do not redistribute PDFs.
View all sources, provenance and verification notes
| Document | Obtained from | Dates | Status |
|---|---|---|---|
| 2026 Franchise Disclosure Document — FASTSIGNS International, Inc. Registry file 641543 · 501 pages Registered in Wisconsin with a registration effective date of May 1, 2026; issuance date on the cover is May 1, 2026. Financial and outlet data cover calendar year 2025. | Wisconsin Department of Financial Institutions — Franchise Registration Search | Issued 2026-05-01 Retrieved 2026-08-29 | Newest available at retrieval |
AI-assisted extraction from the archived FDD text, independently machine-verified against the cited source (two passes plus tie-break); not human-reviewed. Extracted 2026-08-29. Last updated 2026-09-05. AI-assisted extraction independently machine-verified against the cited source document (2026-09-02): two independent AI reading passes plus tie-break re-inspection of every disagreement; 73 of 77 material fields confirmed (67 with the exact page citation re-confirmed), 0 corrected, 1 unresolved, 3 confirmed not disclosed. No human has reviewed this profile. Fiscal year covered: FY2025 (Dec 31, 2025). See how we use AI and verify data.
Fields flagged as uncertain (8)
- franchisor.franchising_since — Item 1 says only that 'Since our incorporation' (April 30, 1986) the franchisor has developed, operated and franchised the system; it gives no separate year in which franchising began, so 1986 is taken from that sentence.
- investment.total_low — the Item 7 Full-Service table total is $231,225 and foots exactly to the sum of its low column, but the cover page states $231,226 for the same format. The Item 7 figure is used.
- investment.alternative_formats (Conversion) — the Item 7 Conversion table total is $229,477 and foots exactly, but the cover page states $230,477. The Item 7 figure is used.
- operations.owner_involvement — recorded as manager_permitted because a Key Management Employee may run the business full time after the first six months, but the owner or Managing Principal must personally work full time for those first six months; neither enum value captures both phases.
- risk.noncompete — the Item 17 summary table states the 15-mile radius but no duration for the post-term covenant, and the underlying Franchise Agreement text was not reviewed for this record.
- risk.other_flags (minimum sales performance) — the cover-page risk warning states minimum sales performance levels must be maintained, but no threshold was located in Items 6, 11, 12, 16 or 17.
- item19.metrics 'Gross sales generated by outside sales professionals in their first 12 months (hired 2024)' — the narrative text and the table disagree (105 / $339,995 / $290,216 versus 104 / $341,874 / $291,425); the table values are recorded.
- fees.transfer_fee and fees.renewal_fee — both are expressed as a percentage of the then-current initial franchise fee; the dollar values shown apply the current $49,750 fee and will change if that fee changes.
Extraction notes (12)
- Investment, fee and Item 19 figures come from the Full-Service Center format, which Item 19 describes as the format typically offered under this FDD. Conversion and Co-Brand tables are recorded in investment.alternative_formats.
- Item 20 counts are United States only. Item 19 separately states 793 Centers were open worldwide on December 31, 2025, of which 83 were international, so the worldwide system is larger than the 710 recorded in units.
- All three Item 20 Table No. 3 rows foot exactly (start + opened − closures = end), and the Item 7 low and high columns both foot to their stated totals.
- item19.population_share_of_system is computed as 690 U.S. Centers in the main Item 19 population divided by 710 franchised U.S. outlets at December 31, 2025, giving 97.2%.
- Item 19's outside-sales-professional study reports a high of $84,763,626, which is inconsistent with the $9,109,903 system high reported in Table 1; this appears to be an error in the document and no value from that sentence is recorded as a metric.
- Item 19's expense discussion states that expense data was missing for 352 of the 690 Centers yet that 383 Centers were excluded; these reconcile once the 31 Co-Brand Centers, which are excluded from the expense tables, are added to the 352, leaving the 307 reporting Centers used in the tables.
- Item 5 quotes equipment costs of $67,520 to $71,294 while the Item 7 production equipment row shows $74,341 to $78,152; the Item 7 table is used for the investment line items.
- No minimum liquid capital or net worth requirement appears on the cover pages or in Items 1, 5, 7, 11 or 15, so both are recorded as not disclosed rather than sourced from the franchisor's website.
- Item 17 also contains a parallel Co-Brand Franchise Agreement table with the same ten-year term and renewal structure; the Franchise Agreement column is the one recorded here.
- Verification 2026-09-02: flag_unresolved /investment/net_worth_required
- Verification 2026-09-02: fix_page /item20/projected_openings_next_year 129 → 130
- Verification 2026-09-02: fix_page /item20/signed_not_open 129 → 130
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