Have you ever considered owning a franchise store in a niche industry, like a special occasion yard greeting company? Sign Gypsies is one of the largest yard greeting companies in the United States with special offerings.
Since they are in a niche area and have big exposure, they don’t have a lot of competitors, and this allows for an easier business for entrepreneurs.
If you think about owning a Sign Gypsies franchise, you might be curious about their franchise structure. We will talk about their franchise system, associated costs, and other franchise details.
About Sign Gypsies and Sign Gypsies’ History
Sign Gypsies is a yard greeting company specializing in providing special and customizable experiences with their high-quality yard signs. They offer unique designs for anywhere from homes to businesses for any kind of special event.
They were founded in 2014, and they started to franchise in 2020, so they are a new business and also a new player in the franchise industry.
Even though they are new, they have over 800 locations nationwide, and they are the fastest-growing and biggest yard greeting company in the US now.
They have a very low-cost entry barrier for franchisees and a detailed program to get you started. That’s why they are a good choice for beginner entrepreneurs with low cash.
Franchise Model Table
| Cost Or Fees | Amount |
|---|---|
| Initial Investment | $4,150-$9,900 |
| Franchise | YES |
| Franchising Since | 2020 |
| Franchise-Fee | $1,000 |
| Royalty-Fee | N/A |
| Liquidity | N/A |
| Estimated Outlets | 800+ |
How Much Does It Cost To Open A Sign Gypsies Franchise?
The total expected costs to open a Sign Gypsies vary between $4,150 and $9,900. It stands as probably one of the cheapest franchises to open. The expected cost includes everything from the $1,000 franchise fee to all related startup costs like lease, marketing, tools, insurance, and many others.
Depending on your choices, it could go above the max $9,900. It is just an aggregated number that Sign Gypsies came up with from existing franchises.
Franchise Requirements
There are no requirements to apply to be a Sign Gypsies franchise. They do not look for a minimum net worth or liquidity. It’s enough if you have the funding to cover your expenses to open the store and operate it.
They also do not look for experience as a manager or in the industry. It’s better if you have business acumen for you personally, but it’s not a requirement from Sign Gypsies.
Profit & Revenue Of Sign Gypsies
Sign Gypsies is not a public company. That’s why they are not obligated to share their financial information. Since they don’t share it, we don’t know the general profit and revenue for the company. However, we know the average sales a franchised store makes.
Based on that information, we conclude that Sign Gypsies’s annual revenue could be around $64 million. Using an average profit margin of 10%, their net profit could be $6.4 million. These are estimations, and the real numbers could be different.
Payback Period Of Sign Gypsies
With an investment of $9,900 and an estimated 10% profit on the average net sales, which is $81,022, the yearly profit would be $8,102.2.
So, to find out how long it will take to earn back the initial investment:
Payback Period = Investment / Yearly Profit = $9,900/ $8,102.2= 1.22 years
Based on these figures, it will take approximately 1 to 2 years to pay back the initial investment for Sign Gypsies. This time period could be longer or shorter depending on your sales, revenue, and profit figures.
Failure Rate Of Sign Gypsies
Franchised Outlets:
| Year | Outlets at the Start of the Year | Outlets at the End of the Year | Net Change |
|---|---|---|---|
| 2019 | 0 | 0 | 0 |
| 2020 | 0 | 387 | +387 |
| 2021 | 387 | 765 | +378 |
For the Franchised outlets:
- In 2019, the failure rate was (0)/0×100≈0.00%
- In 2020, the growth rate was (387)/0×100≈can’t be divided by zero
- In 2021, the growth rate was (378)/387×100≈97.67%
Company-Owned Outlets:
| Year | Outlets at the Start of the Year | Outlets at the End of the Year | Net Change |
|---|---|---|---|
| 2019 | 0 | 0 | 0 |
| 2020 | 0 | 0 | 0 |
| 2021 | 0 | 1 | 1 |
For the Company-Owned outlets:
- In 2019, the failure rate was (0)/0×100≈0.00%
- In 2020, the failure rate was (0)/0×100≈0.00%
- In 2021, the growth rate was (1)/0×100≈can’t be divided by zero
Total Outlets:
| Year | Outlets at the Start of the Year | Outlets at the End of the Year | Net Change |
|---|---|---|---|
| 2019 | 0 | 0 | 0 |
| 2020 | 0 | 387 | +387 |
| 2021 | 387 | 766 | +379 |
For Total outlets:
- In 2019, the failure rate was (0)/0×100≈0.00%
- In 2020, the growth rate was (387)/0×100≈can’t be divided by zero
- In 2021, the growth rate was (379)/387×100≈97.93%
According to the above-mentioned data, we can see that the franchised outlets for Sign Gypsies grew from 2020 to 2021, showing a growth rate of 97.67%.
On the other hand, for company-owned outlets, the failure rate of Sign Gypsies was 0.00% for the same period of time which is not a good sign for the company.
Overall, when we combine the data of franchise and company-owned outlets, we can see that the Sign Gypsies franchise has expanded in the years 2020-2021 showing a total growth rate of 97.93%.
Overall Sales Of Sign Gypsies
According to Sign Gypsies’s franchise document, a franchised store makes $81,022 in annual overall sales. This is the annual revenue a franchised store can expect.
How Much Does A Sign Gypsies Franchise Owner Make?
There is no official information about the franchise owner’s salary or the net profit per franchised store.
However, according to our estimates, the estimated net profit is between $10,000 to $25,000. It could be higher depending on the profit margin and the overall sales.
Training and Support
The company offers only classroom training, which consists of 7.5 hours in total. The training covers operational details.
It may include details like the services of the company, operational education, and other related management issues to make sure you can run your business in accordance with the standards.
Sign Gypsies also offer ongoing support like pre- and post-opening support. They help with field operations, give you an intranet platform, provide online support, and also give you help with marketing operations from SEO to loyalty programs and apps.
Terms of Agreement and Renewal
The initial length of the franchise agreement is for one year. A renewal is available if both parties agree to it and the franchisor is satisfied with the franchisee. The details of the renewal and the fee will be determined on the initial franchise disclosure agreement you sign at the beginning.
Obligations and Restrictions
The franchisees are not obligated to be present in the business on a full-time basis to oversee the operations. The store can be run part-time from home or from a unit. However, absentee ownership is not allowed, which means the franchisee needs to supervise the store on a schedule, if not full-time.
You have to offer all the services and products that Sign Gypsies want you to, and you can’t sell anything that the franchisor didn’t approve.
The decor service franchise market offers several opportunities for entrepreneurs, such as franchises from Card My Yard and Glass Doctor.
Sign Gypsies Comparison
| Name | Franchise Fee | Royalty Fee | Initial Investment |
|---|---|---|---|
| Card My Yard | $8,000 | 25% | $9,800-$18,000 |
| Sign Gypsies | $1,000 | N/A | $4,150-$9,900 |
Conclusion
Sign Gypsies is one of the biggest special occasion yard sign rental companies in the United States, with over 800 stores. This makes them an extremely attractive business for entrepreneurs to own a franchise with them. Thanks to low opening costs and no royalty fees, it’s even more beneficial for entrepreneurs to open one.
However, the expected annual revenue stands at around $15,000, which is not a high number, especially if you want to make a living out of it.
Depending on your goals, there might be better opportunities out there other than Sign Gypsies, but if you just want an extra income, then it could be an incredible opportunity.
FAQs
Is Sign Gypsies a franchise?
Yes, Sign Gypsies has been an active franchise since 2020.
What is the Sign Gypsies franchise fee?
The franchise fee for Sign Gypsies is $1,000. You pay this fee in cash when you sign the initial agreement in a lump sum.
Can you make money with a Sign Gypsies franchise?
Most of the Sign Gypsies franchise outlets make an average profit of about $10,000 annually. So you can make money, but if you want to make a living salary, you need to have more than one Sign Gypsies franchise location.
Who founded Sign Gypsies?
Sign Gypsies is a custom yard greeting rental that was founded in 2014 by Stacey Hess. It is the largest and fastest-growing yard greeting company in the U.S.
Where is Sign Gypsies headquartered?
Sign Gypsies headquarters is located in Celina, Texas.
How many locations does Sign Gypsies have?
Sign Gypsies operates in 800 locations in two countries.
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