Franchise Deep Dive: Signal Security Franchise Costs, Fees, Profit and Data

The industry-leading security franchise provides solutions for a range of facilities, including everything from residential homes to hotels to industrial sites.

By Luca Piacentini1851 Franchise Managing Editor

9:09AM • 08/20/23

LAST UPDATED: August 8, 2023

FRANCHISE WEBSITE: https://www.teamsignal.com/franchise-opportunities

NUMBER OF LOCATIONS: 970

REPORTED COST TO GET IN: $57,450 - $273,150

REPORTED ROI (Item 19): 39% (Avg Gross Profit Per Franchise)

Signal (formerly Signal 88) is a private security franchise that provides mobile patrols, alarm response, dedicated (standing guard) security, concierge officers or front door staff, special event security and asset protection to residential, commercial and industrial clients nationwide. Clients can request regular patrol duties, specialized security personnel or specific event security measures. The Signal franchise competes against other brands in the private security industry, such as Pop-a-Lock and Shield Security Systems.

How Many Signals Are There?

Signal was established in 2003 in Omaha, Nebraska by Reed Nyffeler and several experienced law enforcement experts. The company chose to depart from the conventional corporate framework seen in many national security companies, focusing instead on developing a network of franchises. With a business model akin to those used by gas stations, fast food chains and retail brands, Signal set out to disrupt the security industry through franchising.

From humble beginnings, Signal rapidly evolved into an industry trailblazer and now stands as one of the largest and most well-known private security franchises. It boasts over 970 units spread across the United States, Canada, Australia and the United Kingdom.

In Entrepreneur Magazine's Franchise 500, Signal holds impressive rankings, such as #17 for Franchises for Veterans, #1 in the category of Security Franchises, #24 for the Fastest-Growing Franchises and an overall ranking of #83.

What Is the Signal Business Model?

As the owner of a Signal franchise, you are entrusted with providing a sense of security and tranquility to both your clients and the local community. This enables everyone, including yourself, to follow their dreams and passions. It's your responsibility to employ, mentor and supervise the staff needed to fulfill the security needs as outlined by your customers. Additionally, you will manage the everyday functions of the franchise, encompassing areas like administration, promotion and financial matters.

Clientele will pay directly for the security services, with the cost varying based on the type and extent of security staff needed. Options are available for vehicular patrols or patrols on foot.

Signal equips all franchise holders with the technology and training necessary for business expansion. Assistance from the Signal team includes website creation, handling new customer inquiries, client billing and payroll management. Support is also provided in the fields of marketing, hiring and key performance indicators, all designed to facilitate the successful operation of the franchise.

How Much Can Signal Franchise Owners Make?

Signal does not have a publicly available Item 19. To learn more, contact the team about reading the Franchise Disclosure Document (FDD), which will state the total earnings of any company or franchise-owned unit as a reference.

However, according to the brand’s website, Signal franchise owners saw a 39% average gross profit per franchise unit.

How Much Does It Cost To Open Signal?

The total investment to open a Signal franchise can range from $57,450 to $273,150.

Name of Fee	Low	High
Initial Franchise Fee	$50,000	$200,000 (or higher depending on territory size)
Licenses	$500	$5,850
Vehicle	$2,250	$37,000
Equipment	$0	$3,000
Transportation of Vehicle	$300	$1,500
Tax, Title, & License Fees	$500	$3,500
Insurance	$250	$3,000
Workers’ Compensation Insurance	$150	$800
Wages	$0	$10,000
Local Advertising	$500	$500
Additional Funds Operating Capital (combined w/ Wages)—first 90 days	$3,000	$8,000
ESTIMATED TOTAL (with minimum territory size)	$57,450	$273,150

What Is the Franchise Fee for Signal?

The initial franchise fee ranges from $50K to $200K. Military veterans and law enforcement officers receive a franchise fee discount.

Type of Fee	Amount
Royalty Fee	4% of gross revenues during the previous month.
Franchise Support Fee	5% of gross revenues during the previous month.
Strategic Partner Fee	2% of gross monthly revenues derived from contract obtained directly or indirectly by efforts of the franchisor or its affiliates, as determined exclusively by the franchisor.
Additional Training and Expenses	N/A
Transfer Fee	The greater of $0.05 per capita in the territory plus actual expenses, or 20% of sales price.
Audit	Actual expenses of audit if audit reveals understatement of gross revenues by 5% or more, or any misrepresentation.
Renewal Fee	None if sales goals are met; otherwise $0.25 per capita in the territory.
Late Charge	Interest at 25% APR or highest rate allowed by law on outstanding overdue amounts.
Service Fee (Failure to Cure Default)	$250 per day, plus expenses.
Service Fee (Incapacity or Death of Franchisee)	$200 per day, plus expenses.
Failure to Attend Convention	Then-current registration fee, plus all associated costs and expenses.

Who’s On Signal’s Leadership Team?

Reed Nyffeler — CEO and Founder
Matthew Wasson — Sr. Director of Franchise Development
Brian Mossman — Chief Operations Officer
Dallas Davis — Franchise Development Manager
Jonathan Thorndyke — Franchise Development Senior Manager
Ryan R. Main — Director of Talent Acquisition

What Helpful Articles Can I Read to Learn More About Signal?

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