About Signal Franchise
Signal is a security-services franchise that provides patrol and dedicated security services under the Signal brand name.
Franchisees engage in the provision of onsite and off-site surveillance, executive security services, and security consulting services for contracting clients.
The franchise primarily serves business customers in need of site surveillance and security consulting, as well as individuals and businesses requiring executive protection services or safety training.
Signal Franchise Cost & Fees
Minimum Investment
$93K
Average Investment
$167K
Maximum Investment
$241K
| Fee Type | Amount | Notes |
|---|---|---|
| Initial Franchise Fee | $85,000 - $170,000 | One-time payment upon signing |
| Royalty Fee | 4% of Gross Revenues of gross sales | Ongoing; paid monthly |
| Marketing/Ad Fund | 5% of Gross Revenues (Franchise Support Fee) | National brand fund |
| Total Investment Range | $93,200 – $241,150 | Includes build-out, inventory, working capital |
The investment range of $93K–$241K reflects variability in build-out costs, store size, lease terms, and market. The combined royalty (4% of Gross Revenues) and marketing fee (5% of Gross Revenues (Franchise Support Fee)) are ongoing costs paid as a percentage of gross sales.
Investment Breakdown (Item 7)
| Item | Low | High |
|---|---|---|
| Initial Franchisee Fee | $85,000 | $170,000 |
| Licenses | $500 | $5,850 |
| Vehicle | $2,250 | $35,000 |
| Equipment | $0 | $3,000 |
| Transportation of Vehicle | $300 | $1,500 |
| Tax, Title, & License Fees | $500 | $3,500 |
| Insurance | $1,000 | $3,000 |
| Workers' Compensation Insurance | $150 | $800 |
| Wages | $0 | $10,000 |
| Local Advertising | $500 | $500 |
| Additional Funds Operating Capital - first 90 days | $3,000 | $8,000 |
Additional Fees (Item 6)
| Fee Type | Amount |
|---|---|
| Transfer Fee | Greater of $0.05 per capita in the Territory plus actual expenses, or 20% of sales price |
| Renewal Fee | $0.25 per capita in the Territory if sales goals not met; none if sales goals are met |
| Audit Fee | Actual expenses of audit if audit reveals understatement of Gross Revenues by 5% or more |
| Strategic Partner Fee | 2% of Gross Monthly Revenues from franchisor-referred contracts |
| Late Charge | Interest at 25% APR or highest rate allowed by law on overdue amounts |
| Service Fee (Failure to Cure Default) | $250 per day plus expenses |
| Service Fee (Incapacity or Death) | $200 per day plus expenses |
| Failure to Attend Convention | Then-current registration fee plus all associated costs and expenses |
Training Program (Item 11)
| Detail | Information |
|---|---|
| Total Duration | 5 days anticipated |
| Classroom Training | 27.5 hours |
| On-the-Job Training | 65 hours |
| Training Location | Franchisor's office in Omaha, Nebraska and/or other locations including online |
| Additional Training | Additional mandatory, field, operational, refresher, advanced or other training programs or seminars offered from time to time. Periodic and ongoing virtual training via phone, email, and/or web conference. |
Territory Rights (Item 12)
| Detail | Information |
|---|---|
| Territory Type | Exclusive |
| Exclusive Territory | Yes |
| Territory Size | Approximately 100,000 people population, defined by ZIP codes |
| Description | Franchisee receives one or more exclusive Territories defined by ZIP codes. Franchisor will not locate another franchised or company-owned Signal business within the Territory. However, franchisor reserves the right to promote, solicit, and enter into contracts that may involve furnishing services within the Territory. Continuation of territory depends on meeting sales volumes: $150,000 in year 1, $225,000 in year 2, $300,000 in year 3. Franchisor reserves the right to reduce or alter Territory upon renewal. |
Renewal, Termination & Transfer (Item 17)
| Detail | Information |
|---|---|
| Initial Term | 3 years |
| Renewal Term | 3 years (successive terms) |
| Renewal Fee | $0.25 per capita in the Territory if sales goals not met; none if sales goals are met |
| Renewal Conditions | Give written notice of intent to renew; obtain franchisor approval; sign new agreement or renewal addendum; meet sales goals and performance standards; pay renewal fee; complete renewal application; sign release; renewal of lease; agree to make necessary capital expenditures; must not be in breach or default |
| Transfer Fee | Greater of $0.05 per capita in the Territory plus actual expenses, or 20% of sales price |
| Transfer Conditions | Give notice, new franchisee must qualify, not be in default, pay transfer fee, sign release, franchisor receives copy of purchase agreement, transferee obtains all permits and licenses, lessors consent, transfer made in compliance with applicable laws |
| Termination for Cause | Franchisor may terminate for cause including unauthorized use of marks, failure to satisfy opening conditions, failure to meet minimum sales quota, failure to allow inspection, refusal to sell and perform services, failure to comply with Franchise Performance Manual, bankruptcy, unauthorized transfer, failure to timely pay fees, conviction of a crime, abandonment. 30 days to cure curable defaults. |
| Non-Compete Period | 2 years |
| Non-Compete Details | No competing business within 75 miles for 2 years after expiration or termination. Must not solicit business from customers of former franchised business or contact franchisor's suppliers or vendors for competitive purposes, or solicit employees of franchisor, affiliates, or system franchisees. |
Operations & Supply (Items 8 & 15)
| Detail | Information |
|---|---|
| Owner-Operator Required | Yes |
| Participation Details | Signal prefers owner-operated franchises and encourages personal participation in direct operation. Franchisee and/or designated manager must devote full-time energy and best efforts to managing the business. On-premises supervision not required but highly recommended for those with a physical office site. |
| Required Suppliers | Vehicles from approved suppliers; equipment (mobile smart phone with internet connectivity); signs, uniforms, marketing materials, vehicle equipment from franchisor or approved suppliers; integrated patrol and guard management system software; business insurance from approved providers |
| Supply Restrictions | Approximately 37% of purchases and leases for establishing the business and approximately 60% of purchases and leases for operating the business must be from franchisor or approved suppliers |
| Franchisor Revenue from Suppliers | $304,358 in 2021 from required franchisee purchases (0.18% of Signal 88's total revenues of $165,114,406). Also receives 3-5% payment from vehicle supplier for equipment installed on each vehicle. |
Financing (Item 10)
| Detail | Information |
|---|---|
| Financing Available | Yes |
| Description | Signal 88, LLC offers financing for franchise fees through Signal Assist Loan (80% of fees, 20% down, 36 months, Prime Rate plus 475 basis points currently 8.25%), SignalAssist Plus Loan (90-96% of fees, 10% down for new/varies for existing, 36 months, same rate), and Revenue-Based Territory Purchase Loan (100% of fees, $5,000 down for new, 0% interest, 10% of Gross Monthly Revenue payments). Also offers Operations Line of Credit for up to 90% of uncollected Gross Revenues aged less than 91 days. |
Signal Franchise Earnings — Item 19
Average Revenue
$1.3M
Revenue Range
$147K – $5.2M
Sample Size
109 units
Past financial performance does not guarantee future results. Individual results will vary.
Signal Litigation & Risk Flags
Clean Litigation RecordSignal has no pending litigation actions listed in their FDD. There is also no bankruptcy history disclosed.
Litigation and bankruptcy data is sourced from Items 3 and 4 of the FDD. Always verify current status directly from the most recent FDD.
Signal System Growth
Total Units
849
Franchised
849
Company-Owned
0
Signal currently operates 849 franchised locations and 0 company-owned units. Unit count data is sourced from Item 20 of the FDD.
Unit History (Item 20)
| Year | Opened | Closed | Total |
|---|---|---|---|
| 2019 | 131 | 11 | 517 |
| 2020 | 81 | 18 | 580 |
| 2021 | 276 | 7 | 849 |
Transfers: 56 | Closures: 7
State Registrations
Registered in 50 states: AL, AK, AZ, AR, CA, CO, CT, DE, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, WY
Franchisor Financials (Item 21)
Revenue
$165.1M
Signal Franchise — FAQ
The total investment to open a Signal franchise ranges from $93,200 to $241,150, per their Franchise Disclosure Document. This includes the initial franchise fee of $85,000 - $170,000. The investment covers build-out, inventory, equipment, signage, working capital, and other startup costs.
Signal charges a royalty fee of 4% of Gross Revenues of gross sales, plus a 5% of Gross Revenues (Franchise Support Fee) contribution to the marketing/advertising fund. These fees are paid on an ongoing basis.
You can download the Signal Franchise Disclosure Document free on this page. The FDD is a public document filed with state franchise registries. Always also request the current FDD directly from Signal to ensure you have the most up-to-date version.
According to the Item 19 financial performance representation in their FDD, Signal franchise owners report average revenue of $1.3M. This is based on a sample of 109 units. Past performance does not guarantee future results.
Signal has been franchising since 2008. The FDD shows an investment range of $93,200-$241,150, a 4% of Gross Revenues royalty, and includes an Item 19 earnings disclosure. There is no pending litigation. Review the full FDD and contact current franchisees listed in Item 20 before making any investment decision.
The franchise fee is $85,000 - $170,000 and the total investment ranges from $93,200 to $241,150 depending on location size and market. Contact the franchisor directly for current net worth and liquid capital requirements, territory availability, and application details.
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Data Source & Disclaimer: This website is for informational purposes only. It is not an offer to sell or buy a franchise. This profile is based on publicly available FDD data sourced from state franchise registry filings. All information is for research purposes only and does not constitute legal, financial, or investment advice. Data may be outdated or contain errors. Always obtain the current FDD directly from Signal and consult a qualified franchise attorney before making any investment decision. FranchiseOverview.com is operated by Franchising Compliance, LLC and is not affiliated with Signal or any of its subsidiaries. To report an inaccuracy: info@franchiseoverview.com