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$4.2M Security Business… With $773K Revenue?!

10 snips
Nov 4, 2025
The hosts critique a $4.28 million asking price for a Signal Security franchise in San Antonio that only generates $773K in revenue. They discuss the challenges of low-skill staffing in security, highlighting liability risks and operational difficulties. The team debunks unreliable franchise rankings and raises concerns over the franchisor's focus on selling rather than service quality. They explore the potential of pivoting to executive security and the impact of technology on traditional guard roles, ultimately agreeing this franchise is not worth the investment.
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INSIGHT

Asking Price Far Exceeds Revenue

  • The listing asks $4.28M for a Signal Security franchise with only ~$773K revenue, creating a huge valuation gap.
  • The hosts flag this as likely overpriced and not supported by disclosed EBITDA or realistic margins.
INSIGHT

Core Business Is Low-Margin Staffing

  • The business is essentially commercial security staffing: contract hourly guards and patrol services.
  • Owners must manage low-wage staff, unpredictable incidents, and heavy day-to-day operations.
ADVICE

Avoid 'Only Penalized' Service Models

  • Avoid businesses where excellence isn't rewarded but failures are punished, like low-skill security staffing.
  • Expect constant crisis management and liability when hourly guards mess up.
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