The signage franchises, SIGNARAMA discuss making the move to a franchised business

Switching from an independent business to a franchise is an important decision with far-reaching consequences.

Statistics suggest that over 10 years of operation, over 90% of franchised businesses are still in operation versus 18% of independents, a fact that leads many to choose the franchise road.

One of the most obvious advantages of joining a franchise is the immediate savings from better group buying deals and also field support, mentorship and business advice.

E.C. Stumpf converted from Infamous Graphics to the SIGNARAMA in July 2008.

One issue that swayed Stumpf towards making the move was to think long-term about what he would do when the time came to sell the business and move on.

“It gives me an exit strategy – it is easier to sell a franchise than to sell an independent sign shop,” Stumpf said.

However, the mental challenge of letting go of perceived independence is one factor that can lead to buyer remorse. In Stumpf’s experience his employees liked their unique name and took some time to come around to the instant recognition of the signage franchises, SIGNARAMA brand.

All franchise systems have a royalty structure and business owners must be sure to factor in the ongoing franchise royalty fee (anywhere from 1% to 10% in Australia) as part of the budgeting process. These need to be weighed up against the cost savings as a result of the buying power that is generated from being part of a franchise.

Weigh up the available options and consider the pros and cons. Create lists of the things that you like about your independent business and jot down some things that you think a franchise can bring to increase your performance, your profitability and where you want to be in the future.

If you would like further information on signage franchises, contact SIGNARAMA.