Allegra Print & Imaging
Date of Incorporation: 1976
Franchising Since: 2000
Address: Northville, Michigan
Country: U.S.
Description: Allegra Print & Imaging markets a full range of digital and conventional offset printing, large format printing, marketing services, copying, electronic pre-press, bindery, and mailing services to businesses and the general public.
Franchise Offer: Two types of franchises
i.) Conversion Print Center - Conversion Print Centers complete most of the services it offers in-house, including conventional offset printing, and typically requires a higher initial investment because it requires the purchase or lease of an offset press and related equipment. The franchisee may only acquire a franchise for a Conversion Print Center if they are purchasing an independent printing center and converting it to an Allegra Print & Imaging Center. Conversion Print Centers typically start operations with an established customer base, experienced staff, immediate cash flow and a track record. It also offers certain signs and banners, mailing services, promotional products and one-to-one marketing solutions utilizing variable text and graphics to target messages, in addition to the traditional capabilities of a printing center.
ii.) Digital Print Center - Digital Print Centers specialize in digital document output, copying and marketing services, variable data printing, advertising specialties, signs, banners and other business communication services. A Digital Print Center will outsource some of its services, including conventional offset printing.
Financial Assistance: The franchisor will refer the franchisee to leasing companies or vendors and suppliers who have a working relationship with leasing companies in order to assist in the financing of the equipment package. If the franchisee leases the equipment, the franchisor may guarantee some or all of the financial obligations under the lease. Except as described, the franchisor does not offer direct or indirect financing.
Training and Assistance: The initial training program involves at least 10 days of instruction for two persons at the franchise headquarters. The training program is mandatory for all franchisees (and their owners) and covers pricing methods, general business procedures, use of equipment, purchasing, invoicing, credit and collection, marketing, advertising, promotion, and effective methods for selling printing and related products and services. It includes 80 hours of classroom training and 40 hours of ‘on-the-job’ training. The franchisee must satisfactorily complete the training. The program is typically conducted about 30 and 90 days after the Franchise Agreement date for the center is signed.
Territory: The franchisee is granted an exclusive territory. The franchisor will not establish or operate other centers and other printing and copying businesses using the marks, inside the Protected Territory. Other centers may market and solicit customers in the franchisee’s market area and likewise, the franchisee may market and solicit customers in the market area of other centers.
Term of Agreement and Renewal: The Franchise Agreement term is 20 years, with option to renew one successor franchise on the then current terms (which may be materially different from existing terms) for 20 years.
Obligations and Restrictions: The franchisee (or managing owner) must devote substantially all of their effort and time to the on-premises supervision of the center and manage the center on a full-time basis. The on-site manager (or any replacement manager) does not need to successfully complete the training program. However, the franchisee must supervise, train and evaluate the performance of the employees so that they provide competent and efficient service to customers.
Total Number of Units: 342 units.
Investment Tables:
Initial Investment:
| Expenditures | Low | High |
|---|---|---|
| Initial franchise fee | $45,000 | $45,000 |
| Training Expenses | $2,500 | $3,000 |
| Rent (3 month) | $4,500 | $15,000 |
| Rent deposit | $1,500 | $5,000 |
| Utility deposits | $500 | $1,500 |
| Equipment | $3,049 | $3,700 |
| Inside signage, remodeling, decorating | $2,500 | $5,000 |
| Exterior signage | $1,700 | $4,500 |
| Grand opening marketing and promotion | $2,750 | $6,200 |
| Insurance (for 12 months) | $1,200 | $2,000 |
| Business licenses and permits | $100 | $1,000 |
| Down payment on Business | $75,000 | $300,000 |
| Additional Funds | $40,000 | $75,000 |
| Estimated Initial investment | $180,299 | $466,900 |
Ongoing Fees:
| Name of Fee | Amount |
|---|---|
| Royalties | Sliding scale of 6% to 0% of the Total Monthly Receipts |
| Marketing Fund fee | 1% of Total Monthly Receipts, not to exceed $7,220 per Center, per annum |
| Market Builder Payments | Currently $0.64 to $0.69 per piece of direct mail |
| Local Advertising Cooperative fee | 1% of Total Monthly Receipts |
| Internet Services | Initial set up fee of $400 plus a hosting fee of $50 per month |
| Brand Connect | Initial set up fee of $150 plus a hosting fee of $35 per month |
| Online Order Processing System | Initial set up fee of $300 plus a monthly fee of $30 per month |
| Transfer Fee | a) $1,500 if the franchisor does not assist in selling the Center; or (b) the greater of 5% of the gross sales price or $15,000, if the franchisor assists in selling the Center. |
| Audit | Cost of audit, including the charges of any independent accountants, travel expenses and per diem personnel charges (currently $1,000 per day per person). |
| Interest | Lesser of 1.5% of the monthly outstanding balance or highest contract rate of interest allowed by law. |
| Costs, accounting and attorneys' fees | Will vary based on circumstances |
| Indemnification | Will vary based on circumstances |
| Acquisition Service Fee | Currently, (a) $500 retainer; and (b) the greater of $3,000 or 1% of the previous annual gross sales of the acquisition candidate for the calendar year prior to the acquisition. |
| Termination Fee | Unpaid amounts owed to franchisor, plus a termination fee equal to the greater of $55,000 or the prior 12 months of aggregate Total Monthly Receipts or Gross Sales (whichever is applicable) multiplied by 5. |
Date of FDD: 2009
The above information has been taken from the UFOC/FDD and online sources of Allegra Print & Imaging.
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