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Business Description

SAR is a corporation incorporated in April 1987 in the State of Florida. We do business under our corporate name, “Sign*A*Rama Inc.” and our trade name “Signarama.” Our principal place of business is 2121 Vista Parkway, West Palm Beach, FL 33411. SAR's agents for service of process are disclosed in Exhibit F to this Disclosure Document.

Prior Experience

In 1986, Roy Titus, together with his son, Ray Titus, opened the very first Signarama retail store using the name “Speedy Sign*A*Rama, USA”. In late 1987 we began franchising and as of the date of this Disclosure Document have 709 stores in 36 countries. In 1994, we modified our trade mark for the retail stores from “Speedy Sign*A*Rama, USA” to just “Sign*A*Rama” and we amended our corporate name to “Sign*A*Rama Inc.” In 2012, we modified the trade name for the retail stores from “Sign*A*Rama” to “Signarama,” however, our corporate name has remained the same and is still “Sign*A*Rama Inc.” In 2018, Ray Titus appointed his son, A.J. Titus, as President of the brand. SAR eventually sold both of their corporately owned stores as franchises and continues to sell franchises to this day. SAR does not have any company owned or operated units. SAR does not have a parent corporation or any predecessors.

Business Offered

SAR offers to you, our customer, and the right to own and operate a full service Signarama Sign Center (a Center”) of your own. In your Center you will use our trademark, trade name, proven and sophisticated procedures and trade secrets. You will produce, fabricate, install and/or sell magnetic signs, boat and vehicle lettering, paper and laminated signs, banners and posters, show cards, vinyl lettering, menu boards, reflective signs, name plates, interior/exterior signage, window lettering, mobile signs, retail displays, store fronts, trade show graphics, architectural and directional markings, wood signs, engraved signs, Americans With Disabilities Act (ADA) signage, and electric and neon signs. That's quite a list of product offerings! As Ray Titus often says, “A business with no sign is a sign of no business.” Your competitors include independent sign shops, franchisees of other sign businesses and to a lesser degree, commercial sign shops. Your customer base will primarily be businesses, industrial parks, retail centers, large corporations, etc. The market for signs in the United States is mature with demand increasing for electronic signage incorporating the latest technology. We encourage you to seek legal counsel regarding state and local laws that may affect your Sign Center. Many states, and/or municipalities regulate the use of signage and the products you can offer through your Sign Center. Some states also have laws that require persons who install signs to have a contractor license. For example, California requires that, unless you are a licensed contractor, you are prohibited from installing signs in excess of $500, the State of Nevada requires you to have a contractor's license in order to install signs of any type or value, and the State of Texas requires you to use a licensed electrical contractor to install electrical signs.

Initial Fees

All franchisees purchasing a new Signarama franchise pay an initial franchise fee of $49,500 when they enter into our Franchise Agreement except as noted below. At least 14 days after we provide you with a copy of this Disclosure Document, but prior to signing the Franchise Agreement, you will be required to pay a $9,500 deposit, commonly referred to as a “binder.” This binder is fully refundable if you do not purchase a Signarama franchise. After we receive your binder, we begin the search for your Center location. When you enter into your Franchise Agreement the binder is applied against the initial franchise fee leaving a remainder of $40,000 which must be paid at the time of signing the Franchise Agreement. The initial franchise fee is non-refundable. If you are an existing storeowner, you will pay a reduced non-refundable franchise fee of $25,500 for an additional outlet. If you are converting an existing sign business to the Signarama brand, you will pay a non-refundable franchise fee of $49,500. If you are an employee of an existing Signarama franchisee who is enrolled in our Employee Credit Program (“ECP”), you may be eligible to receive a discount of $1,000 to $15,000 of the standard franchise fee (“ECP Discount”). All requirements of the ECP must be satisfied to qualify for the ECP Discount, including: (1) enrollment in the ECP; (2) sign a non-compete agreement in the form we or your franchisee employer designates; and (3) meet our then current requirements for a new Signarama franchisee. The ECP Discount only applies to the grant of a new, full-service Signarama sign center. The ECP Discount does not apply to a transfer or conversion franchise. We reserve the right to modify or cancel the ECP at any time. Eligible United States military veterans with 1 to 10 years of active duty service will receive a discount of 10% of the franchise fee. Eligible veterans with 11 to 20 years of active duty service will receive a discount of 15% of the franchise fee. Eligible veterans with 21 or more years of active duty service will receive a discount of 25% of the franchise fee. An eligible veteran is a veteran who has received an honorable discharge. Owners in good standing of our affiliated brands (Fully Promoted, TBA, SuperGreen, EXM, JSS, VTX and TGG) purchasing our franchise will pay a non-refundable franchise fee of $39,500. You will need to purchase or lease equipment prior to opening your Signarama Center. The current cost of the equipment (if purchased) is $148,030, plus taxes, and a deposit of $12,500 is due at the time of signing the Franchise Agreement. The balance of the purchase price, $135,530, plus taxes is due within 10 days of signing a lease for the premises of your sign center. The purchase price of the equipment is nonrefundable. See Items 7 and 10 for information about leasing your equipment. Our affiliate, Franchise Real Estate assists our franchisees with site selection, lease negotiation, construction management, store design and layout and assistance with obtaining building renovation costs. You may use Franchise Real Estate's services at your option. Franchise Real Estate may be compensated by your landlord for their services, but if you opt not to use Franchise Real Estate and you retain another real estate company for this assistance, then you will be required pay a service charge to Franchise Real Estate for their pre-opening assistance of $3,500. This service charge will be required to be paid prior to opening your Signarama Center and is non-refundable. If you are purchasing a resale franchise or if you are converting an existing sign business to the Signarama brand, we will evaluate your equipment needs and your costs for equipment will be less. If you are purchasing a resale franchise, you will be required to rebrand or refresh the branding of the existing Signarama Center you are purchasing. This cost is approximately $2,500 to $9,000. If purchasing a resale franchise, you may be required to pay Electronic Point of Sale (EPOS) System a data conversion and transfer fee. This fee varies, and ranges between $500 to $1,500 if you purchase a resale franchise. If this fee is required, it must be paid prior to the data conversion and transfer. If you are converting an existing sign business to the Signarama brand, at the time of signing the Franchise Agreement, you pay a fee of $1,000 to $1,500 for data migration services to transfer your point of sale system data to our EPOS System, to establish your membership in the Marketing Fund and for user and software licenses. These fees and payments are nonrefundable. Note to Purchasers of a resale franchise whose owner came into our system prior to December 1991: In typical resale situations, sellers pay to SAR a transfer/training fee of $29,500 from the proceeds of the sale. However, in a resale transaction, where the seller came into our system prior to December 1991, the buyer will pay to SAR directly this fee as an initial franchise fee. No additional monies will be due SAR from either buyer or seller in the form of a training or transfer fee for this sale.

Financing

We offer indirect arrangements for financing of your equipment through leasing companies. We do not offer directly or indirectly any arrangements for financing of any other initial investment expenditure or of the continuing operation of your franchise. We do not guarantee your note, lease or any other obligation. We have arranged for equipment leasing through Quality Leasing Corporation (“Quality”), an unrelated third party not affiliated with SAR in any manner. The leasing company will lease you a major portion of the equipment package that you need to establish the Signarama franchise business, up to $148,030 worth of equipment. We may also use other lending sources in the future. If you lease $148,030 worth of equipment through Quality, you will pay approximately $3,760 per month, plus any applicable sales and use taxes (Payment factors and terms are subject to change without notice). You will be required to pay a 10% down payment when you sign your equipment lease documents. The lease term is 48 months. There is a “purchase option” in the amount of $101 which is due at the end of the lease term. Should you lease $148,030 of equipment, that purchase option is $22,204.50. Depending on your personal credit status and other qualifications, the leasing company may approve you for less than the full purchase price of the complete equipment package. If you are approved for a lesser amount, you will be required to pay the remaining balance of the complete equipment package, plus any applicable sales and use tax directly to us. The lease with Quality will require you and your spouse to personally guarantee your lease. Quality will retain a security interest in the equipment. A copy of the equipment lease is included with this Disclosure Document as Exhibit C. Your lease may be prepaid at any time; however, you will still be responsible to pay the full amount of lease payments and, therefore, will not realize a savings by prepaying. In the event of a default, Quality may accelerate the payment of all remaining lease payments, repossess and remove the equipment, either with or without written notice to you and you may be responsible for Quality's reasonable collection costs, legal fees and expenses incurred in enforcing the terms of the lease and recovering the equipment. Further details can be found in Sections 17 and 18 of the lease agreement in Exhibit C. The lease states that you agree that you are obligated to pay the lease payments without regard to any defense or counterclaim you may have. Should you cease to be a Signarama franchisee prior to completion of the lease payments to Quality, another franchisee may apply to take over the lease payments for the remaining term of the lease. However, Quality may choose to retain your personal guarantee until the lease is paid in full. Quality does not compensate SAR for any services provided by SAR to Quality in connection with the equipment leasing process. SAR receives a fee from Quality equal to 2% of the lease amount for referring a franchisee to it for financing. SAR may identify new leasing or finance companies at any time and refer franchisees to different equipment leasing or financing company. A new leasing or finance company may compensate SAR or pay SAR a fee for referring its franchisees to it for leasing or financing.

Franchisee Revenue and Profit

The FTC's Franchise Rule permits a franchisor to provide information about the actual financial performance of its franchises and/or franchisor-owned units, if there is a reasonable basis for the information, and if the information is included in the disclosure document. Financial performance information that differs from that included in Item 19 may be given only if: (1) a franchisor provides the actual records of an existing outlet you are considering buying; or (2) a franchisor supplements the information provided in this Item 19, for example, by providing information about possible performance at a particular location under particular circumstances. The financial performance representation information in this Item 19 includes certain financial performance information relating to our Centers' operation in calendar year 2018. We obtained 100% of the average gross sales data for the Centers listed in the Center Sales Tables and the other financial performance representations included in this Item 19 from monthly sales reported to us by the Centers. The monthly sales reports have not been audited by certified public accountants nor have we sought to independently verify their accuracy for purposes of the financial performance representations. Not all Centers properly reported sales in 2018. SAR - MULTISTATE - 2019 43 The financial performance representations include average gross sales of Centers for the year 2018. “Gross sales” means total reported sales revenue, excluding any county or state sales tax collected. Center Sales Study In our Center Sales Study, we disclose the average gross sales in 2018 of Centers in the United States in operation for two (2) full years or more as of December 31, 2018, which properly reported their sales for each of the twelve (12) months in 2018, segmented into 3 categories: (1) Centers that employed an outside sales person in 2018; (2) Centers that did not employ an outside sales person in 2018; and (3) Centers that have employed a full time outside sales person for more than one (1) full year. It has been our experience that having a full-time outside sales person is an essential part of a successful marketing program and the Signarama system format. We have always recommended that our franchisees employ a full-time outside sales person. We require new franchisees to hire an outside sales person prior to commencing their Signarama business. On average, the Centers in the Center Sales financial performance representations have been operating for 10.5 years. Forty-five percent (45%) of the Centers included have been in operation for more than 10.5 years and fifty-five (55%) have been in operation for less than 10.5 years. On average, the Centers in the Center Sales financial performance representations in Table 2 have been operating for 11.2 years. Forty-seven percent (47%) of the Centers included have been in operation for more than 11.2 years and fifty-three (53%) have been in operation for less than 11.2 years. As of December 31, 2018, there were 401 Signarama Centers located in the United States. There were 379 Centers in operation in the United States during all twelve (12) months of calendar year 2018. Three hundred fourteen (314) Centers or eighty-two percent (82%) of Centers operating in the United States are represented in the Center Sales financial performance representations. Twelve Centers ceased operations in 2018. The sales data of zero Centers were excluded that ceased operations during 2018 after operating for less than 12 months. Highest Volume - Lowest Volume Center Sales of Centers with Outside Sales Person In our Highest Volume – Lowest Volume Center Sales financial performance representations, of the Centers that employed an outside sales person in 2018, we disclose the highest and lowest gross sales of the Centers in the United States which properly reported their sales for each of the twelve (12) months in 2018. The Highest Volume – Lowest Volume Center Sales financial performance representation is based on a population of 80 Centers (see Table 2, Row 1) Hall of Fame Centers In our Hall of Fame Centers financial performance representation, we disclose: (1) the criteria for membership in the Hall of Fame; and (2) the number of Centers that have achieved Hall of Fame membership status within our franchise system. Designation as a Hall of Fame Center serves to recognize Centers for their outstanding achievement in business and exemplary overall performance as a Signarama Center. Members of the Hall of Fame are nominated into the Hall of Fame by their peers (other franchisees). In order to be nominated, the Center and its owner must meet all of the following criteria: • Center has operated for six (6) years or more; • Franchisee is a team player; • Franchisee serves as a Mentor to other franchisees; • Center has attained gross sales of $1,000,000 or more in two (2) consecutive years; • Franchisee has attended at least 1 convention or regional meeting in each of the three (3) years prior to nomination; • Center is a current member of the Marketing Fund*; and • Center location is brand compliant. *All new franchisees are required to become members of the Marketing Fund, however, when the Marketing Fund was originally established and for a period of years after implementation of the Marketing Fund, membership was optional. Hall of Fame Members as of December 31, 2018: 72 Centers of the 72 Centers that have been nominated into the Hall of Fame, 58 Centers were located in the United States and 14 in other countries. Million Dollar Circle Centers In our Million Dollar Circle Centers financial performance representation, we disclose (1) the criteria for inclusion in the Million Dollar Circle; and (2) the number of Centers included in the SAR - MULTISTATE - 2019 46 Million Dollar Circle in 2018. Criteria for inclusion in the Million Dollar Circle is $1,000,000 in gross sales in the calendar year of 2018. A total of 75 Centers qualified for inclusion in the Million Dollar Circle in 2018. On average, the 2018 Million Dollar Circle Centers have been in operation for 11.76 years. Fifty four percent (54%) of the Million Dollar Circle Centers have been in operation for more than 11.76 years and forty six percent (46%) have been in operation for less than 11.76 years. Of the 75 Centers that qualified for inclusion in the 2018 Million Dollar Circle, 39 Centers were located in the United States, 20 in Australia, 7 in New Zealand, 7 in Canada, 1 in France and 1 in South Africa. Some outlets have sold this amount. Your individual results may differ. There is no assurance that you'll sell as much. Written substantiation of this financial representation will be made available to you upon reasonable request. We do not make any representations about a franchisee's future financial performance and other than the preceding financial representation, we do not make any representations about the past financial performance of company-owned or franchised outlets. We also do not authorize our employees or representatives to make any other representations either orally or in writing. If you are purchasing an existing outlet, however, we may provide you with the actual records of that outlet. If you receive any other financial performance information or projections of your future income, you should report it to the franchisor's management by contacting Jill Klein, our General Counsel, at 2121 Vista Parkway, West Palm Beach, FL 33411, 561-640- 5570, the Federal Trade Commission and the appropriate state regulatory agencies.