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- 2023 Franchise 500 Rank
#83 Ranked #98 last year
- Initial investment
$93K - $241K
- Units as of 2022
970 125.6% over 3 years
Signal (formerly Signal 88 Security) was founded in 2003 in Omaha, Nebraska, and the company started franchising in 2008. Now Signal has over 650 franchise territories in the U.S. It also has a presence in Canada and several other countries.
Signal works to provide residential, commercial, and industrial clients with security services. The company wants to help people have a physically safe environment, giving them a better chance to flourish and prosper. Signal offers security services for apartments, hotels, schools, commercial and industrial establishments. Clients can request patrol services, dedicated security officers, or event security.
Why You May Want to Start a Signal Franchise
A franchisee for Signal should display the qualities it takes to be a team captain. These qualities include passion, commitment, positivity, and confidence. A franchisee for Signal may need to possess good communication skills and the ability to inspire others. Signal may need franchisees who can recognize strengths within the team and use them appropriately.
Signal provides all franchisees with technology and training that can help their franchise grow. The Signal team should help franchisees publish a website, manage new client leads, invoice clients, and operate payroll. Franchisees also have support for marketing, recruiting, and performance indicators that will likely help franchisees run their business.
What Might Make a Signal Franchise a Good Choice?
To be part of the Signal team, you should make sure you're financially ready for an initial investment made up of a franchise fee and other startup costs. In addition, you should prepare yourself for ongoing fees that will include service fees and royalty fees.
Signal has been ranked in Entrepreneur’s Franchise 500 multiple times in recent years. This ranking is based on an evaluation of more than 150 data points in the areas of costs and fees, size and growth, franchisee support, brand strength, and financial strength and stability. Signal has also been named as one of the best home-based franchises to own by Entrepreneur.
How To Open a Signal Franchise
Before deciding to open a Signal franchise, it is a good idea to research some things on your own. The first thing you may want to check out is the competition. Find out what kind of competition is in your area for security services. You should also search out potential locations. The corporate office may help you with this, but it is good to do some of your own homework and come prepared.
If you pursue the opportunity of opening a Signal franchise, you will receive training through their online platform. The officer brand experience program may also help franchisees recruit and retain employees once operations begin.
Before making any financial commitment or signing an agreement, you must perform your due diligence and establish if this is the right opportunity for you. As part of your due diligence, you may want to speak to existing franchisees and ask the Signal franchising team questions.
- Services (Other)
- Related Categories
- Security Services, Miscellaneous Services
- Reed Nyffeler, Owner/CEO
- Corporate Address
3880 S. 149th St., #102
Omaha, NE 68144
- Franchising Since
- 2008 (15 years)
- # of employees at HQ
- Where seeking
This company is offering new franchisees throughout the US.
This company is offering new franchisees worldwide.
- # of Units
- 970 (as of 2022)
Information for Franchisees
Here’s what you need to know if you’re interested in opening a Signal franchise.
Financial Requirements & Ongoing Fees
Here’s what you can expect to spend to start the business and what ongoing fees the franchisor charges throughout the life of the business.
- Initial Franchise Fee
- $85,000 - $170,000
Definition: The initial fee paid to a franchisor to join their system
What you need to know: Found in Item 5 of the FDD, this may be a flat fee, or may vary based on territory size, experience, or other factors.The franchise fee is an up-front (one-time) cost that a new franchisee pays to the franchisor. This fee is usually due at the signing of the franchise agreement and covers the right to use the franchisor's trademarks, name, and related business systems.
- Initial Investment
- $93,200 - $241,150
Definition: The total amount necessary to begin operation of the franchise
What you need to know: The initial investment includes the franchise fee, along with other startup expenses such as real estate, equipment, supplies, business licenses, and working capital. This is outlined in a chart in Item 7 of the FDD, showing a range of possible costs from low to high.
- Veteran Incentives
- $0.05 off franchise fee per capita in territory
Definition: A discount or other incentive offered to military veterans who buy a franchise with this company.
- Royalty Fee
Definition: A ongoing fee paid to the franchisor on a regular basis.
What you need to know: Most franchisors require franchisees to pay an ongoing royalty fee, which is detailed in Item 6 of the FDD. This fee is typically a percentage of weekly or monthly gross sales, but may also be a flat weekly, monthly, or annual fee.
- Ad Royalty Fee
Definition: An going fee paid to the franchisor on a regular basis to support advertising or marketing efforts.
What you need to know: This may also be called advertising fee, marketing fee, brand fund fee, and more, but the basic purpose is the same-- to support promotion of the brand systemwide. As with the royalty fee, it is detailed in Item 6 of the FDD, and can be a percentage of weekly or monthly gross sales or a weekly, monthly, or annual fee.
- Term of Agreement
- 3 years
Definition: The length of time your franchise agreement will last.
What you need to know: Franchise terms are typically anywhere from 5 to 20 years in length, but are sometimes instead dependent on factors such as the term of your lease. Once your term is up, you may have the option to renew your agreement, typically for a smaller fee than the original franchise fee.
- Is franchise term renewable?
Some franchisors offer in-house financing, while others have relationships with third-party financing sources to which they refer qualified franchisees.
- In-House Financing
- Signal offers in-house financing to cover the following: franchise fee, accounts receivable, payroll
- Third Party Financing
- Signal has relationships with third-party sources which offer financing to cover the following: equipment, inventory
Training & Support Offered
Franchisors offer initial training programs and a variety of ongoing support options to help franchisees run their businesses.
- On-The-Job Training
- 65 hours
- Classroom Training
- 27.5 hours
- Ongoing Support
Purchasing Co-opsNewsletterMeetings & ConventionsToll-Free LineGrand OpeningSecurity & Safety ProceduresField OperationsSite SelectionProprietary SoftwareFranchisee Intranet Platform
- Marketing Support
Ad TemplatesNational MediaRegional AdvertisingSocial MediaSEOWebsite DevelopmentEmail MarketingLoyalty Program/App
Additional details about running this franchise.
- Is absentee ownership allowed?
Definition: Absentee ownership means that the franchisee does not actively work in the franchise business or manage day-to-day operations.
- Can this franchise be run from home/mobile unit?
Definition: The business can be run from your home and/or a vehicle, and it is not necessary to have a retail facility, office space, or warehouse.
- Can this franchise be run part time?
Definition: This business can be run by the owner on a part-time basis (less than 40 hours per week) and/or as a side business; it is not necessary for the business to be open/run full-time.
- Are exclusive territories available?
Definition: An exclusive territory is a fixed area in which you are given the right to operate and in which no other units of the same franchise may be opened.
What you need to know: Territory size may be based on factors such as radius, population size, zip codes, and more. Details can be found in Item 12 of the FDD.
Interested in ownership opportunities like Signal? Request a free consultation with a Franchise Advisor now.
Franchise 500 Ranking History
Compare where Signal landed on this year’s Franchise 500 Ranking versus previous years.
Curious to know where Signal ranked on other franchise lists? Find out below.
Ranked #83 in 2023
Franchise 500 Ranking
Ranked #15 in 2022
Ranked #108 in 2022
Top Global Franchises
Ranked #25 in 2022
Top Franchises for Veterans
Ranked #10 in 2022
Fastest-Growing Franchises (U.S. & Canada)
Ranked #11 in 2022
Top Franchises for Less Than $100,000
Ranked #1 in Security Services in 2021
Best of the Best
Ranked #1 in 2023
#1 in Security Services Category
Ranked #21 in 2022
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