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Signal 88 Security

Signal 88 Security

Franchising since 2003 · 21 locations

The total investment to open a Signal 88 Security franchise ranges from $25,000 - $194,760. The initial franchise fee is $55,000. Ongoing royalties are 4% plus a 5% advertising fee. Signal 88 Security currently operates 21 locations (21 franchised). The top SBA 7(a) lenders for Signal 88 Security are Celtic Bank Corporation, The First National Bank of McGregor d/b/a TFNB Your Bank for and Newtek Small Business Finance, Inc.. PeerSense FPI health score: 45/100. Data sourced from the 2026 Franchise Disclosure Document.

Investment

$25,000 - $194,760

Franchise Fee

$55,000

Total Units

21

21 franchised

FPI Score
High
45

Proprietary PeerSense metric

Fair
Capital Partners
12lenders available

Active capital sources verified for Signal 88 Security financing

SBA

7(a) Eligible

21d

Avg Funding

P+2.25%

Best Rate

No retainers · Referral fee at closing

FPI Score Breakdown

Established (25-99 loans)

High Confidence
45out of 100
Fair

SBA Lending Performance

SBA Default Rate

15.4%

4 of 26 loans charged off

SBA Loans

26

Total Volume

$3.5M

Active Lenders

12

States

14

Top SBA Lenders for Signal 88 Security

What is the Signal 88 Security franchise?

The question every serious investor asks before committing capital to a security services franchise is not whether crime exists — it does, at a documented and growing scale — but whether the franchise system they are evaluating has the operational model, brand equity, and proven growth trajectory to capture durable market share. Signal 88 Security franchise answers that question with one of the most compelling origin stories in the franchising industry. Founded in 2003 in Omaha, Nebraska by Reed Nyffeler, a law enforcement professional with over 30 years of experience as a police officer and detective with the US Air Force Police Department, Signal 88 Security was built from the ground up by someone who understood security not as a commodity service but as a foundational human need. The company's very name carries that conviction: "Signal 88" derives from Nebraska police code meaning "situation secure," a phrase that doubles as a brand promise to every client the company serves. Signal 88 Security Franchise Group, Inc. was formally incorporated as a Nebraska corporation on November 13, 2007, and the company launched its franchise opportunity in 2008, making it one of the earlier entrants in the franchised security patrol services category. Today, Signal 88 Security has scaled to more than 600 US offices and over 1,000 offices globally as of the end of 2023, with independent data suggesting the network has surpassed 1,400 locations worldwide and approximately 1,059 units in 2024. Entrepreneur Magazine has ranked Signal the number one security franchise and the number four fastest-growing franchise overall, and in the 2025 Franchise 500, the brand claimed the number one position in Security Services and number three among the fastest-growing franchises in any category. For franchise investors evaluating the security services space, this is the brand that has defined the category's modern franchise model. This analysis is produced independently by PeerSense and does not represent marketing material from the franchisor.

The private security services industry in the United States is a massive and structurally growing market. The US security guard and patrol services sector generates tens of billions of dollars in annual revenue, with some market estimates placing the broader private security industry above $50 billion domestically. Global private security is projected to exceed $300 billion in market value within the decade, driven by secular trends that show no signs of reversing. Rising urban density, increasing commercial development, growing retail shrink losses, and heightened institutional awareness of premises liability have collectively accelerated demand for professional, technology-enabled patrol services. The shift toward locally owned and operated security businesses — Signal 88 Security's core franchise model — addresses a critical gap in a market historically served by large, impersonal national corporations that often deliver inconsistent service quality. Remote work has reshaped commercial real estate occupancy patterns, creating new security needs in mixed-use properties, suburban office campuses, and last-mile distribution centers. E-commerce growth has driven explosive demand for logistics facility security. The aging of the population has expanded residential security service demand in retirement communities and high-net-worth residential markets. Signal 88 Security has reported consistent system-wide revenue growth of 26% annually, with an average year-over-year revenue increase of 25.5% from 2011 through 2021 — including a 39% increase in 2020 and a 24% increase in 2021, numbers that suggest the pandemic period, rather than creating headwinds, actually accelerated demand. This is a fragmented industry where brand, technology, and operational consistency create a defensible competitive position that individual operators cannot replicate at scale.

The Signal 88 Security franchise investment range spans from a low of approximately $25,000 to a high of $194,760 based on current franchise data, which positions the brand as an accessible to mid-tier franchise investment relative to the broader services franchise category. For context, Signal 88 Security franchise cost has historically been reported across a range of configurations: early-stage FDD filings cited total initial investment between $75,000 and $300,000, while 2018 FDD data indicated a range of $78,200 to $218,100 depending on territory size and service scope. More recent filings have shown a total investment range as wide as $126,950 to $5,093,300 when accounting for larger multi-territory builds and existing-revenue acquisitions. The initial Signal 88 Security franchise fee has been documented across multiple data points: $25,000 to $65,000 in earlier configurations, with the 2022 FDD establishing a minimum franchise fee of $55,000 or $0.55 per capita in the designated territory, and $75,000 for a territory covering 500,000 people. Average start-up fees paid to Signal have been reported at approximately $70,000. Veterans receive a meaningful cost reduction — Signal offers a 50% discount on the franchise fee for qualifying military veterans, a significant incentive in a sector where law enforcement and military backgrounds are specifically valued. The company's master franchise international model, which governs expansion into Canada, Australia, New Zealand, the United Kingdom, and Germany, involves investment ranges that extend into the millions for master territory rights. Prospective franchisees should consult the current Franchise Disclosure Document for the most precise fee schedule applicable to their target territory, as per-capita pricing structures mean that larger metropolitan territories carry proportionally higher upfront costs. Signal 88 Security franchise investment decisions should be evaluated against the sector average for patrol and guard services franchises, where technology-forward operators like Signal command a premium over legacy models.

Signal 88 Security's operating model is specifically engineered for local ownership with enterprise-grade technology infrastructure. The daily operations of a Signal franchisee center on managing a team of trained security officers deployed to residential, commercial, retail, and institutional client sites, with the franchisor's proprietary technology platform enabling real-time officer tracking, client-facing reporting, and incident documentation. This is not a passive investment — Signal franchisees are expected to function as active business operators, managing hiring, client relationships, and officer deployment schedules. The franchise's founding by law enforcement professionals informs its training standards: franchisee onboarding incorporates both business operations instruction and the security service delivery protocols that differentiate Signal's offering from lower-cost competitors. Territory structure is a defining feature of the Signal 88 Security franchise model, with territories defined by per-capita population sizing and exclusive to the franchisee within their designated geography. This exclusivity is critical in a service category where client proximity and officer response time are direct drivers of contract retention. Signal's corporate support infrastructure includes field consulting, technology platform access, national marketing programs, and supply chain relationships that reduce the overhead of building a security services business from scratch. The company's modern service model — described in corporate materials as differentiated by cutting-edge technology and locally owned operations — allows franchisees to compete against large national security firms on service quality while maintaining the unit economics of a lean owner-operator structure. Multi-unit development is an active part of Signal's growth strategy, particularly in underpenetrated geographic markets, and the company's international expansion using a master franchise model demonstrates a sophisticated understanding of how to scale service businesses across diverse regulatory and cultural environments.

Item 19 financial performance data is not disclosed in the current Franchise Disclosure Document for Signal 88 Security, which means prospective investors cannot access audited average revenue or profit figures directly from the FDD. This absence of Item 19 disclosure is a material consideration in any due diligence process and should prompt prospective franchisees to conduct primary research — including direct conversations with existing franchisees listed in the FDD — before making a capital commitment. However, system-level performance data provides meaningful context. Signal 88 Security has reported consistent system-wide revenue growth of 26% annually at the network level, and from 2011 to 2021 delivered an average year-over-year increase of 25.5%, with a peak of 39% growth in 2020. These are not unit-level averages, but network-level figures that reflect the aggregate trajectory of the franchise system. The 2018 FDD documented 399 franchised US locations across 35 states, with the South region alone accounting for 241 locations, suggesting geographic concentration and strong regional market penetration. Unit count growth from 241 franchised locations documented in 2012 to more than 600 US offices by end of 2023 indicates sustained franchisee demand and low voluntary exit rates — a proxy signal for acceptable unit economics. In the security guard and patrol services industry, revenue per officer and contract renewal rates are the primary drivers of unit-level profitability, and Signal's technology platform, which provides clients with real-time reporting and accountability data, is specifically designed to improve both metrics. Franchise investors evaluating Signal 88 Security franchise revenue potential should benchmark against industry standards for patrol service businesses in their target territory, accounting for local market wage rates, which represent the largest operating cost in any guard services business.

Signal 88 Security's growth trajectory is among the most documented in the security services franchise category, providing investors with a multi-year data set that most emerging franchise concepts cannot offer. The franchise launched in 2008 with a single-market model and expanded to over 160 franchises across 37 states by January 2016, then to more than 170 locations with over 3,000 network employees by July of that same year. The 2018 FDD reported 399 franchised locations in 35 states, and by the end of 2023 the network had surpassed 600 US offices and 1,000 global offices, serving more than 4,600 customers. The 2024 data point of approximately 1,059 units reflects continued net positive unit growth. Internationally, Signal's master franchise model has established operating businesses in the US, Canada, Australia, New Zealand, the United Kingdom, and Germany, with active expansion plans targeting Switzerland, France, Austria, Spain, Italy, and the Czech Republic in the near term, and Belgium, the Netherlands, the Scandinavian countries, and Hungary identified as longer-term expansion markets. The franchisor's stated goal of entering all major European markets within five years is an ambitious but data-supported target given the brand's existing international infrastructure. Signal's competitive moat rests on three structural advantages: a proprietary technology platform that creates client dependency and generates recurring contract revenue, a nationally recognized brand with Entrepreneur Magazine's top-ranked security franchise designation, and a franchise recruitment model that attracts former law enforcement and military professionals who bring operational credibility to local client relationships. The 2025 Franchise 500 ranking of number one in Security Services and number three in fastest-growing franchises across all categories is a meaningful independent validation of system health that prospective investors should weigh seriously.

The ideal Signal 88 Security franchisee profile is shaped by the company's law enforcement and military heritage. Candidates with backgrounds in policing, military service, corporate security, or emergency management bring an operational credibility that accelerates client acquisition in a business where trust is the primary purchase driver. Signal's 50% veteran discount on the franchise fee reflects a deliberate recruitment strategy targeting this demographic, and franchisees with law enforcement networks are particularly well-positioned to build referral pipelines in their territories. That said, Signal's corporate training and support infrastructure is designed to bring franchisees without security industry backgrounds up to operational competency, particularly for candidates with strong business management or sales skills. Territory availability spans the United States and active international markets, with Signal's international expansion creating ground-floor master franchise opportunities in multiple European countries. The per-capita territory pricing model means that major metropolitan markets require higher upfront investment but also offer larger addressable client bases and higher-margin commercial contract opportunities. Multi-unit operators are accommodated within Signal's franchise structure, and franchisees who demonstrate strong unit performance are natural candidates for adjacent territory acquisition. The company's current global network serving more than 4,600 customers across residential, commercial, retail, and institutional segments indicates that Signal's service platform is validated across every major client category that a franchisee is likely to encounter in their market.

Synthesizing the data available, the Signal 88 Security franchise opportunity presents a structurally sound investment thesis for candidates who are prepared to operate an active, people-intensive service business in a high-growth industry category. The combination of a 20-plus year operating history dating to the company's 2003 founding, a franchise system with documented net unit growth from launch in 2008 through the present, Entrepreneur Magazine's top security franchise ranking across multiple years, and a 26% annual system-wide revenue growth rate produces a franchise profile that warrants serious due diligence from qualified investors. The security services industry's secular demand drivers — rising crime awareness, commercial real estate security requirements, retail loss prevention needs, and residential safety spending — create a durable tailwind that is not dependent on discretionary consumer spending cycles. The absence of Item 19 financial performance disclosure in the current FDD is a due diligence consideration that investors must address through direct franchisee interviews and independent market analysis. The investment range of $25,000 to $194,760 at the entry level makes this one of the more accessible franchise opportunities in the security services category, particularly for veterans taking advantage of the 50% franchise fee discount. PeerSense provides exclusive due diligence data including SBA lending history, FPI score, location maps with Google ratings, FDD financial data, and side-by-side comparison tools that allow investors to benchmark Signal 88 Security against competing security services franchises across every financial and operational dimension. The Signal 88 Security franchise profile on PeerSense includes the complete independent franchise intelligence suite, territory availability mapping, and franchisee contact data from the current FDD. Explore the complete Signal 88 Security franchise profile on PeerSense to access the full suite of independent franchise intelligence data.

FPI Score

45/100

SBA Default Rate

15.4%

Active Lenders

12

Key Highlights

Data Insights

Key performance metrics for Signal 88 Security based on SBA lending data

SBA Default Rate

15.4%

4 of 26 loans charged off

SBA Loan Volume

26 loans

Across 12 lenders

Lender Diversity

12 lenders

Avg 2.2 loans per lender

Investment Tier

Mid-range investment

$25,000 – $194,760 total

Signal 88 Security — Deep SBA Data

Brand-specific metrics derived directly from SBA 7(a) approval records — peak lending year, leading state, average loan size, and lender concentration. PeerSense computes these per brand so capital advisors and prospective franchisees can benchmark this opportunity against the rest of the franchise universe.

Peak SBA Year

2015

11 approvals — best year on record for Signal 88 Security.

Top SBA State

Texas

9 SBA-financed Signal 88 Security locations — the densest operator footprint.

Average Loan Size

$134K

Median $150K — use as a sizing anchor when modeling your own $Signal 88 Security unit.

Lender Concentration

65.4%

Concentrated

Share of Signal 88 Security approvals captured by the top 3 SBA lenders.

Signal 88 Security's SBA lending pipeline peaked in 2015 (11 approvals). The last five fiscal years account for 23% of cumulative volume ($669K approved). Operator density is highest in Texas with 9 SBA-financed locations. Average funded ticket sits at $134K, with the median at $150K. Lender mix is concentrated: the top three SBA lenders account for 65.4% of approvals — credit decisions concentrate with a small group of incumbents.

Payment Estimator

Loan Amount$20K
Interest Rate9.5%
Term (Years)10 yr

Estimated Monthly Payment

$259

Principal & Interest only

Locations

Signal 88 Securityunit breakdown

Total Units
N/A
Franchisee Owned
System Owned
Closed

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Signal 88 Security