5 Franchises You Want to Invest In
Businesses that provide services and products to other businesses, more commonly referred to as b2b services, is another strong industry. Fastsigns , a 27-year-old company making signs, decals, digital prints and other custom solutions for businesses, has been able to adapt its services to a changing market.
The company has 530 locations in the U.S. and abroad.While startup costs for a Fastsigns store that is not converting from another company average around $200,000, the company is doing its part to open up capital access to franchisees. Besides co-sponsoring the International Franchise Association's Small Business Lending Summit (along with other companies) earlier this week, Fastsigns is one of several companies that partnered with The Bancorp (TBBK) and Franchise America Finance to offer an expansion financing program. Under the program, Fastsigns has a $6 million credit facility for startups and expanding franchisees, it says. Fastsigns also rolled out a program to fund the conversion of independent shops to Fastsigns franchises. "We have the highest [franchisee] satisfaction scores in our category, and Bancorp came in and looked at all of that data," Mark Jameson, senior vice president of franchise development for Fastsigns, told TheStreet in a previous interview. "In partnering, we have dedicated today $6 million of funding for new centers. And because of that our new-center growth will be in record numbers. If we didn't have the financing, that wouldn't be the case." Segreto says Fastsigns has a very hot market that is going to be around for a long, long time within the industry segment. Fastsigns in particular is set up for success. Coincidentally, Fastsigns CEO Catherine Monson will also appear on Undercover Boss on May 4, according to the company's website. "They're rebranding in a [digital] industry. They're adapting to a changing market. That speaks volumes as a far as a franchisee," Segreto says. He notes that so many old-school printing companies are "dying on the vine" because they won't adapt to a changing market.
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