Verified — real FDD extraction
Not found in the SBA Franchise Directory under this name — though SBA loans to its franchisees exist; verify eligibility with your lender
SIGNAL 88 SECURITY
Business Services · independent · est. —
Signal 88 Security (now branded Signal) provides private security services such as mobile patrols, on-site guards, and property monitoring for residential communities, businesses, and commercial sites. Clients hire it to deter crime and respond to incidents. A franchisee runs a security operation, employing and dispatching patrol officers and managing client accounts.
SIGNAL 88 SECURITY net unit count grew +24.4% from 2021–2023 per its FDD Item 20.
New to franchising? Start here
A franchise is a business where you (the franchisee) pay a company (the franchisor) for the right to open and run a location using their brand and system — think a local Anytime Fitness or Taco John's owned by a small-business owner, not the corporation.
Before you can buy in, U.S. law requires the franchisor to give you a Franchise Disclosure Document (FDD) — a long legal filing covering its fees, finances, and history. The numbers on this page come straight from that document:
- Franchise fee — the one-time cost to buy in.
- Royalty — the ongoing cut of your sales you pay the franchisor.
- Item 20 — how many locations opened and closed, the basis for our verdict (from Proven & strong down to Distressed — or Too new to judge).
The verdict
Proven & strong
Distress
Enough units and history to judge, and the record is good: growing or stable units with clean exits by the standards of its disclosed record. The main concern in the record: owners are leaving at a high rate.
Exit rate · latest year
3.1%
vs 8.1% across 28 business services systems
Cost to open
$127K–$5.1M
Item 7 total investment range
SBA loan defaults
20.0%
20 loans resolved — directional only
Behind the verdict
the record, factor by factor · Item 20
3-yr trend · Item 20 Table 1
terminations + ceased-ops vs. all exits · Table 3
transfers vs. base · Table 3
actual vs. projected openings · Table 5
Item 19 disclosure + completeness
Systemwide units
2021–2023
Survival record
FDD Item 20 · outlet status by year
In fiscal 2023, 30 of 963 franchised outlets left the system — a 3.1% annualized exit rate, vs 8.1% across 28 business services systems. Not every exit is a failure — but this is the measurable floor.
Show the outlet tables ↓Hide the evidence ↑
| Status (FTC) | 2021 | 2022 | 2023 |
|---|---|---|---|
| Outlets at start | 582 | 851 | 963 |
| Opened | 276 | 126 | 126 |
| Transfers | 56 | 68 | 111 |
| Terminations | 7 | 14 | 30 |
| Non-renewals | 0 | 0 | 0 |
| Reacquired by franchisor | 0 | 0 | 0 |
| Ceased — other reasons | 0 | 0 | 0 |
| Outlets at end | 851 | 963 | 1,059 |
| Net change | +269 | +112 | +96 |
The lender's view
SBA 7(a)/504 loan performance · FY1991–present
Banks have made 26 SBA-backed loans to SIGNAL 88 SECURITY franchisees since 2015. Only 20 have resolved so far — too thin for a reliable default rate, but 4 of them charged off.
—
20 resolved · too thin to rate
—
avg. charged-off $ ÷ approved $
—
default rate × loss severity
$111,566
what recent franchisees borrowed
61 mo
approval → charge-off, defaulted loans
5 vs 7
distinct banks still lending
Charge-off rate by loan approval year (%)
Loan performance by state
SOURCE: SBA 7(a)/504 FOIA LOAN DATA (DATA.SBA.GOV), FY1991–PRESENT · MATCHED TO SIGNAL 88 SECURITY BY FRANCHISE NAME · RESOLVED = CHARGED-OFF + PAID-IN-FULL
The owner's side of the deal
FDD × federal loan record
Who finances it
Celtic Bank Corporation
53.8% of this brand's loans
That lender charges off 26.8% of its loans to other franchise brands, vs 14.8% nationally.
Who buys it
92.3%
first-time franchise owners
The rest already owned at least one other franchise. Across the corpus, brands bought mostly by repeat operators charge off at roughly 10% versus 17% for brands sold mostly to newcomers.
Does experience help here?
Not enough resolved loans to split
Computed from 26 SBA 7(a)/504 loans to SIGNAL 88 SECURITY franchisees joined to the brand's own FDD. Debt service assumes level amortization at the average disclosed term and rate. A lender's rate excludes its loans to this brand, so it reads the lender, not the brand.
What it costs — and what it drags
FDD Items 5–7 · fees, investment, royalty
Buying in means a $120K franchise fee (Item 5) and a total investment of $127K–$5.1M (Item 7). The franchisor publishes an earnings claim (Item 19) — read its methodology closely.
To open (Item 7)
$127K–$5.1M
all-in investment range
Franchise fee (Item 5)
$120K
upfront, one-time
Royalty (Item 6)
4%
of sales, ongoing
Your figure — cross-check against this brand's Item 19 and current-owner validation.
Royalty you'd pay / yr
$40K
4% of sales, before profit
Over a 10-yr term
$400K
royalties alone, excl. ad fund
This is not profit. It's the only money the FDD actually pins down — what you put in, and the royalty you owe on every dollar of sales. Your real take-home depends on labor, rent, food cost, and ramp-to-breakeven, none of which any FDD discloses.
Build a real pro-forma for SIGNAL 88 SECURITY with an independent CPALabor record
US Dept. of Labor enforcement · franchisee-level · FY2005–present
Federal investigators have concluded 9 wage cases against operators of this system, recovering $23K in back wages for 65 workers. Some of these cases are recent, not ancient history. These cases name franchisee-owned locations, not the franchisor itself.
Concluded cases
9
Back wages owed
$23K
Employees affected
65
Since 2020
1
Read this carefully. The employers in these cases are individual SIGNAL 88 SECURITY franchisees — separately owned businesses operating under the brand name — not SIGNAL 88 SECURITY itself. The franchisor is not the respondent and in most cases is not a party. What the record shows is how this system's operators run their payrolls, which is worth knowing before you become one of them. Counts rise with system size and with age: a 20-year-old, 10,000-unit system will out-count a young one regardless of conduct. Source: DOL Wage and Hour Division concluded compliance actions, FY2005–present, most recent finding 2023.
Modeled risk
FDD Risk Score · modeled from the public record
Modeled from the public record, this brand sits mid-pack: riskier than 44% of systems we score.
Risk percentile
44 / 100
Loan-corroborated
Modeled SBA charge-off
11.6%
Observed SBA charge-off
20.0%
Top drivers: Share financed by high-loss lenders (raises) · System size (log units) (lowers) · Investment ceiling (log) (lowers) · Single-lender dependence (lowers). 15+ resolved loans stand behind this estimate. A linear scorecard built from this brand's own disclosure figures plus the federal loan record behind its franchisees; full spec and cross-validated accuracy on the methodology page. A score is context, not a verdict.
Distress signals
news-sourced · bankruptcies, closures, lawsuits
No recent closures, bankruptcies, or major lawsuits found in the news for SIGNAL 88 SECURITY. That's a good sign — but it reflects news coverage, not a guarantee.
A broker is paid by the franchisor to place you. An independent CPA is paid by you — and the job is pressure-testing SIGNAL 88 SECURITY's numbers, including talking you out of a bad deal.
Talk to an independent CPA before you buy →SIGNAL 88 SECURITY franchise questions, answered from the filings
What percentage of SIGNAL 88 SECURITY franchises closed last year?
In SIGNAL 88 SECURITY's latest FDD Item 20 (fiscal 2023), 30 of 963 franchised outlets left the system — an annualized exit rate of 3.1% — compared with 8.1% across 28 business services systems tracked here. That counts terminations, non-renewals, and "ceased operations — other reasons." There is no official failure rate, and not every exit is a failure, but this is the measurable floor.
How much does a SIGNAL 88 SECURITY franchise cost?
Per SIGNAL 88 SECURITY's 2024 FDD, buying in requires an initial franchise fee of $120K (Item 5) and a total initial investment of $127K–$5.1M (Item 7).
What royalty does SIGNAL 88 SECURITY charge?
SIGNAL 88 SECURITY charges an ongoing royalty of 4.0% of gross sales, per Item 6 of its 2024 FDD.
Does SIGNAL 88 SECURITY disclose earnings (Item 19)?
Yes — SIGNAL 88 SECURITY makes a financial performance representation in Item 19 of its 2024 FDD. Read it closely: franchisors choose which units and which metrics to include.