Signal graphics Essay

SIGNAL GRAPHICSINTRODUCTIONThe Signal Graphics engaged in the business of providing digital imaging, desktop publishing, graphic design services, digital printing and other business promotional items. The organization is in existence of more than 25 years in the printing industry. The first centre opened in 1974. Signal Graphics trained many franchise owners. The Signal Graphics will deliver variety of products from labels to thank you cards. Some of the examples are brochures, business cards, business checks, business stationery, calendars, catalogue, certificates, postcards, note books and many more.

The Signal Graphics providing franchise opportunities to those who are interested with full time or flexible hours. Hence any person can establish a Business Center. The franchisee will be getting be more advantage entering into the industry of Digital Printing.

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As all businesses must require the services of the digital copying, commercial printing, binding etc, the franchisee will earn according to the wishes of own.PROCESS OF FRANCHISE APPLICATIONThe applicant has to submit online franchise application by filling required columns which include personal and professional details besides preliminary financial information. Once the application submitted by the application, the process will be started by the organization starting with phone interview with Signal Graphics representative.

An offering circular will be sent to the applicant for review. If accepted, on the appointed day, the franchise agreement should be made headquarters i.e.

Denver, CO.  the location is to be identified to start the business and when it is confirmed, the applicant should attend training classes for 2 weeks in Denver, CO. That is enough, grand opening of Business Centre and can start the business.FRANCHISE FEE AND INVESTMENTThe Franchisee fee is $25,000 and it guarantees an exclusive territory so that the applicant only can use the logos, trademarks, methods of business of Signal Graphics. Besides Startup expenses $17,000, prepaid expenses amounting $13,000 and equipment package for $65,000. The total amount will be $1, 20,000.

  However the start up expenses may be more i.e. from 17,000 to 39,000.

Lastly, at least an amount of $120,000 required towards working capital which is essential and compulsory. Since it is new for the applicant additional amount is required to compete such facts like pricing, wages, competition etc. Hence $200,000 is required to start franchise with Signal Graphics.The franchisee will receive training and assisted by providing market survey, site selection visit, lease negotiation assistance, opening support etc. It is only one time payment and no royalties is required to pay.OPINIONThe organization i.

e. Signal Graphics is claiming that it involve lower investment for which the franchisee has to bear. Besides they offer also loan packages for which the franchisee will get the loan from local bank/financial institution. But the organization is not provided any assurance about the provision of works to the business partners.

The business partners just have to establish by making investment for which they will receive training and equipment except work for which the franchisee should wait. No projections have been framed the by Signal Graphics that how much franchisee will get the amount per month or per year. Simply the Signal Graphics declared that requirement of working capital about $120,000. There is no clarification about working capital that how many months will be maintained with the specified working capital.  The franchisee has to made investment and should keep quite for the profits or minimum maintenance. Generally all franchisers required to receive Royalty from the Franchisee.

But in this case, since there is no guarantee of work and hence no royalty. Hence making investment with the Signal Graphics not preferable.REFERENCE