FAQ's
How long has Magnetsigns been in business?
We began franchising the Magnetsigns brand in late 1995 and by March 2008 have almost 130 franchises servicing approximately 1,000 cities and communities in Canada and the United States.
What is Magnetsigns competitive advantage?
Our Products: Magnetsign products provide extremely good advertising value, that's why many major businesses and organizations use Magnetsigns. One Magnetsign will provide up to 100 square feet of high impact full-colour advertising on location, 24 hours a day, seven days a week, for just a few dollars a day. Each message can be personalized for the rental customer and can be easily changed. There's a variety of types and sizes of signs for different locations.
Our People: We have great franchisees that love the business and provide great service.
Who are Magnetsigns customers?
Potential customers are anyone who wants to advertise or deliver a message, including local businesses community, church and school groups, non-profit organizations.
What are Magnetsigns used for?
Magnetsigns have been used for hundreds of different uses including: announcing events, Crimestoppers, road construction, auction sales, sport group registrations, school open houses, real estate sales and leasing, business location changes, promotions and special offers, customer education and lots more.
Is your business cyclical?
The great thing about advertising is that it is used all year. Whether the economy is strong or weak, businesses and organizations always need cost-effective advertising. Every month of the year someone has a message. While there are times of the year like spring and fall when there is often additional demand for advertising, franchisees can grow their business any month.
Do I have to rent the signs or can I sell them?
No you can't sell your signs. Magnetsigns are only rented by licensed Magnetsigns franchisees. In addition to providing the sign for rent, franchises provide valuable advertising advice.
How long are Magnetsigns rented for?
Typically the signs are rented by the month. However, the signs are sometimes rented by the day, for a weekend, a week, a month, quarterly or annually. Sometimes sign regulations and by-laws may dictate the period.
How many people are needed to operate a Magnetsigns franchise?
Typically between one and three, depending on the territory demographics and the size of your franchise. You will typically require a full-time person for every 50 to 80 signs rented.
Are Magnetsigns franchisees mostly women or men, or both?
Both. Most of our franchises are a family-operated, home-based business. We have a fairly even distribution of both women and men involved in the business. There are some roles that women and men typically prefer, however there are few if any jobs that can't be done by an able bodied person from either gender. Magnetsigns is a simple business. Our comprehensive training and support will help you become proficient with any task required in the business.
Can our kids work or be involved in the business?
Absolutely. Depending on their age, there is lots of thing they can do and all kind of skills and experiences they can gain. Ask our Franchising Team or our franchisees for some interesting stories about Magnetsigns kids.
What is the franchising process and how long does it take?
Click here to review our franchising process.
Can I operate this business from my home?
Yes, providing your laws allow. Most franchisees start by operating their franchise from home. The great part about the Magnetsigns business is that you can start with a modest initial inventory of say 15 to 30 signs, get these signs rented then order more as required. This way if you are operating from home, you can keep your costs more reasonable and grow within your means.
Is this business part-time or full-time?
The business can be either part-time or full-time. We prefer people that are interested in operating their franchise on a full-time basis so we can all get the most from our investments.
How much space will I need to operate?
A production area about the same size as an average bedroom is needed for a computer and cutting table. A similar sized area is needed for storing letters and graphics. Franchises often use part of their house or garage. You will likely require short-term indoor or outdoor storage for your signs, until you get them rented to your paying customers. If your business grows larger (typically in excess of 100 signs) you may require additional space.
How much will it cost to start a Magnetsigns franchise?
The actual cost to start a Magnetsigns franchise will vary depending on many factors. The average range is typically from $50,000 to $80,000 plus operating capital. Some of the capital required may be financed through various lending programs offered by chartered banks, providing of course the candidate meets the normal borrowing requirements. The cost of purchasing an existing franchise or a portion thereof will vary.
Can I make my own hours?
Yes. You're an independent business person. That's another great thing about owning a Magnetsigns franchise, you get to work your own schedule.
Do I get an exclusive territory?
No. We do not provide exclusive territories. However, we provide a trading area for each franchise to operate within and we typically ensure these areas don't overlap with other franchisees. We don't normally have any serious territory or trading area issues.
Are there regulations regarding signage?
Yes. Almost all cities and communities have sign regulations. We can offer considerable guidance with sign regulations, but regulations vary between locations. Prospective franchisees and existing franchisees are responsible to be familiar and comfortable with your local sign regulations. You must do your due diligence.
Will I have the opportunity to speak to existing franchise owners?
Yes. When you receive the Franchise Disclosure Document, it will include a list of all our existing franchisees and their phone numbers. You are encouraged to speak with several of our franchisees as part of your due diligence.
How long is the franchise agreement? Can I renew it?
The current initial term of the franchise agreement is 10 years with an ongoing renewal term of 10 years.
How much can I expect to earn?
Unfortunately, we cannot predict the success of any of our franchises as many variables affect each business and actual results will vary from one franchise to another and from one operator to another. As stated in our Franchise Disclosure Document we do not provide you with earnings claims, projections of revenues or pro forma financial forecasts. We provide no representations, warranties, costs or return on investment. Your earnings capability will depend on a number of factors such as the amount of time you spend in the business, your sales acumen, your location, your sign inventory and market conditions. Naturally, as in most business ventures there is no guarantee of your success or profitability. We do, however, give you the benefit of our great products and a well-organized and proven concept, which has been refined by our many years of experience.
What is the break even point?
As noted above, we make no earnings claims and each applicant must conduct their own due diligence. We do encourage all applicants to perform a thorough review and to seek professional assistance in this regard.
How much are the ongoing fees?
There is a 10 percent royalty calculated and payable on monthly gross sales and a $60 per franchise per month payment into the marketing fund. There may be fees associated with annual convention or additional training, if required.
What kind of business background do I need?
Successful Magnetsigns franchisees come from all walks of life. If you work well with people, and are passionate about building a business that is both financially rewarding and provides time to enjoy the fruits of your hard work, Magnetsigns could be for you. As a typical family-operated business, each family member often has their own strengths and weaknesses. We prefer individuals with sales, marketing and operations backgrounds as our emphasis is on developing strong client relationships and outstanding customer service as the key ingredient to achieving positive results.
How long will it be before I am renting signs?
It depends on various factors such as training, supplying equipment/materials and your availability to get started. When starting a new franchise you should be starting to rent signs within two to three months after signing a franchise agreement. If you are purchasing an existing franchise the transition may be a few days to a few weeks, depending upon possession.
Are Magnetsigns franchisees happy?
Our experience is absolutely, but that's a question for them. We have very low franchisee turnover and many of our franchisees are the original owners who have owned their franchise for many years. We suggest you wait until you have level one approval and you've received our Franchise Disclosure Document which will have all the contact information for all our franchisees, then ask them about their experience.
Does Magnetsigns Corporation offer financing?
Magnetsigns Corporation does not provide direct financing for starting a franchise or purchasing an existing Magnetsigns franchise. Many of the major lenders such as the retail banks in Canada and the United States have financed Magnetsigns franchises. We will assist you to choose the right lender and help you with the loan approval process.
How much is the initial franchise fee and what do I get for it?
The initial franchise fee is $29,000 and includes the following:
- Use of one of the most widely recognized brand name in the sign rental industry
- One week of initial training for up to four people (travel and accommodation not included)
- Assistance with ordering and shipping your initial equipment, materials and supplies
- Access to start-up support staff and assigned to a start-up coach
- Extensive first year marketing strategy
- Complete operations and marketing systems
- Complete set of operating manuals
- And more......
Do I have to purchase all my items used in the franchise from you?
Yes. Part of the value provided to franchisees of the Magnetsigns franchise network is value of collective purchasing. Magnetsigns franchisees are required to purchase all major items used in their franchise from Magnetsigns Corporation in order to maintain high-quality and uniform products and services at favorable prices and terms.
How do you support me to get started?
The Magnetsigns training and support programs will provide you with the start-up tools you need to get your business started. Once the franchise agreements are signed, you'll be assigned to a start-up coach who will arrange and accompany you through your five days of comprehensive training in all aspect of the business. Your training will include establishing your business, prospecting, sales and marketing, sign design and graphic production, sign delivery, accounting and administration. Your start-up coach will work with you step-by-step through the training and will be your constant link to any other support you require until your business is up and running, renting signs and generating targeted revenue.
What ongoing operational assistance can I expect?
Once you're trained and your business has achieved the initial targeted revenue, you will then be assigned to an operations manager who will help you make the most of your business. Our operations managers provide telephone support and on-site visits. We provide extensive written materials, an intranet communications system, online discussion forums and annual conferences to help you learn from us and other franchisees.
Do you ever have operating franchised businesses for sale?
As mentioned above, we don't have a lot of franchise turnover, but if you're interested, call us at 1-800-219-8977 extension 2. When available, we connect potential buyers with Magnetsigns franchise owners who may be interested in selling a portion or all of their franchised business.