SIGN OF THE TIMES

$60 million a year for booming sign franchise.

Initially, Signs By Tomorrow built its business around cut vinyl—a similar product that is used to produce the pin striping on cars—but in the mid-1990s the digital evolution arrived, culminating in 2003 with breakthroughs in solvent-based, wide-format printing on a wide variety of materials that is used for everything from vehicle wraps to outdoor banners of any size with a guaranteed minimum three-year outdoor life.

“Cut vinyl was the revolution and digital printing was the evolution. We are probably halfway through what I think is the most exciting five-year period in the history of the industry,” McGuinness said.

That assertion is backed by Web Consulting’s 2005 U.S. Sign & Screen Print Market Report that showed the U.S. sign market topped $9.6 billion in 2004 after recording 3.3 percent growth over 2003, that market’s strongest growth since 1999. Franchised stores were among the fastest-growing industry segments, growing at 4.7 percent.

The approximate cost of opening a Signs By Tomorrow franchised store is $198,160 to $268,760, which includes state-of-the-art production equipment and $45,000 to $60,000 in working capital. Ninety percent of Signs By Tomorrow stores are located in retail strip shopping centers, maximizing visibility and accessibility to customers. The stores average 1,800 to 2,000 square feet and the business can be started with two employees in addition to the franchisee. Since 98 percent of customers come from the business-to-business market, Signs By Tomorrow stores are suitable not only for larger markets, but for medium-size markets with populations of at least 75,000.

SIGNS BY TOMORROW AT A GLANCE Signs By Tomorrow 8681 Robert Fulton Dr. Columbia, MD 21046 (800) 765-7446 www.signsbytomorrow.com Franchise Facts: The approximate cost of opening a Signs By Tomorrow franchised store is $198,160 to $268,760, which includes a $28,500 franchisee fee, state-of-the-art production equipment and $45,000 to $60,000 in working capital. There is a monthly royalty fee of six percent on in-store production with a three percent royalty paid monthly on sub-contracted work, with payments not to exceed $3,000 monthly. There is a one percent contribution to a development fund for national marketing, with annual payments not to exceed $2,000. Ninety percent of Signs By Tomorrow stores are located in retail strip shopping centers, maximizing visibility and accessibility to customers. The stores average 1,800 to 2,000 square feet and the business can be started with two employees, in addition to the franchisee. Because it serves the business-to-business market, the typical Signs By Tomorrow store is open weekdays from 8:30 a.m. to 5:30 p.m. Due to the industry’s appeal and comfortable working environment, Signs By Tomorrow franchises are particularly well suited for a family business and almost all of its largest stores are family-owned. Training and Support: Signs By Tomorrow’s training and support program is among the most comprehensive in the industry, beginning with an initial training course for the franchisee and store manager that lasts up to three weeks at Signs By Tomorrow national headquarters in Columbia, Md. The program focuses on operations, sales, accounting, marketing and business ownership. Two weeks of additional onsite field support with an experienced franchise business consultant during the grand opening period includes store set-up, follow-up training, market evaluation and implementation of the Quick Start program, which offers various marketing and sales resources. Ongoing support includes a store visitation program, regional workshops, quarterly newsletters and various other resources. The Franchise Advisory Council, Marketing Task Force and Technology Task Force are franchisee-driven task forces developed to ensure that franchisee needs are being met in various areas and to provide feedback when system-wide decisions are being made.

Q & A With Joe McGuinness

Joe McGuinness, founder, president and CEO of Signs By Tomorrow, worked in a rug mill and ran a rug store to help pay his way while attending Rider University in Lawrenceville, N.J., in the 1960s. McGuinness already had thoughts of being an entrepreneur, but he didn’t have enough money to start his own business, so he went to work for Sears. Working in field operations and headquarters management for Sears—where McGuinness helped launch Sears’ line of professional power tools—and later Black & Decker—where he started the company’s national accounts program that offered professional tools through consumer channels—McGuinness found his passion. “I loved retailing,” he said. In 1986, McGuinness left his 20-year corporate career to fulfill his ambition of being an entrepreneur with the founding of Signs By Tomorrow, one of the franchised pioneers of the one-day sign industry. McGuinness recently offered his views on a number of subjects:

Q: What do you find most exciting about Signs By Tomorrow?
A: I’m biased, but I don’t know of a more exciting business out there. Every single day customers come in and lay something on the counter and ask if we can make it. If you ask our franchisees who have been around for quite awhile, one of the things they enjoy most is that no two days are ever the same.

Q: What do you see as the primary role of a Signs By Tomorrow franchisee?
A: The franchisee’s role is to develop their business. We want the franchisee to be open to work within the community…to network, get to be known and grow their business. We don’t want our franchisees making signs. We employ graphic artists and production people for those duties. We look for people who enjoy working and mixing within the business-to-business community. Our franchisees are dealing with all sorts of business entities in their city or town, everything from government and sports to large and small companies. They’re involved in what’s happening in their town and where things are heading. It’s enjoyable. If I drive into town with a franchisee and they’ve done their job right, they’re telling me: ‘We did this sign and that sign and that one over there.’ They become a key part of the fabric of the community, get tied into various charities and get a good feeling from their contribution.

Q: Almost 75 percent of your franchisees come from corporate backgrounds and Signs By Tomorrow promotes a strong sense of family throughout the company. How is this important?
A: Franchising is perfect for the corporate person. The corporate person goes through life with a support base and various departments working for them. We do the same thing in franchising. They become a business family. Our national meetings are probably one-half business meeting and one-half business family reunion. There are a lot of close personal relationships. People are on the phone all the time and it’s something we definitely foster.

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