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Allegra Print & Imaging Franchise Cost & Fees

Date of Incorporation: 1976

Franchising Since: 1977

Headquarters: Plymouth, Michigan

 

Business Description: Allegra 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: The franchisor offers five types of franchise options:

  1. New Allegra Centers (known as Allegra Marketing*Print*Mail Centers) that focus on the growing marketing needs of small- to medium-sized businesses.
  2. Franchises for the acquisition of independent printing, businesses through the franchisor's MatchMaker program.
  3. Franchises to owners of an independent printing business who want to retain ownership of their business and convert their business through the Advantage program.
  4. Franchises to purchasers of existing Allegra, American Speedy Printing, and Insty-Prints Centers. A franchisee who purchases an existing American Speedy Printing or Insty-Prints Center must convert it to an Allegra Center unless the franchisor determines that such a conversion would encroach on another franchisee's territory.
  5. Franchises for renewal Allegra Centers.

 

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. As part of the franchisor's Advantage program, financing may be available to franchisees if they meet certain geographic criteria and satisfy the lender's credit requirements. The lender has final discretion to determine whether franchisees are credit worthy and otherwise qualify for the financing. Franchisees are also eligible for expedited and streamlined Small Business Administration (SBA) loan processing through SBA's Franchise Registry Program. Except as described, the franchisor does not offer direct or indirect financing.

 

Training and Assistance: The initial training program involves a maximum of 10 days of instruction (or, if you are operating an Advantage Center, a maximum of five days) 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, financial management, marketing, advertising, promotion, and effective methods for selling printing and related products and services. It includes classroom training and ‘on-the-job’ training, both of which the franchisee must satisfactorily complete. The franchisor may provide additional training programs that cover the marketing, management and technical aspects of operating a Center. Attendance at these programs is optional.

 

Territory: The franchisor and its affiliates will not operate or grant a franchise for the operation of another Center of the franchisee’s Designated Brand Concept, the physical premises of which is located within a 2-mile radius of the franchisee’s Center (the Protected Territory).

 

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. However, the franchise term for an Advantage Center is five years with a 10-year renewal term.

 

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. Franchisees must use the franchisor’s specifications for products, materials and supplies, and must follow our specifications and marketing plans for certain brands of products, materials and supplies.

 

Estimated Number of Units: 290

 

Investment Tables:

Initial Investment (for New Centers)

Name of Fee Low High
Initial Franchise Fee $35,000 $35,000
Training Expenses $1,800 $3,950
Rent Deposit $6,000 $10,000
Utility Deposits $750 $3,500
Inventory $2,000 $3,500
Software and Equipment $22,392 $205,477
Fixtures, Furniture, Inside Signage $1,090 $17,2500
Leasehold Improvements, Construction, Remodeling and Decorating $400 $25,800
Exterior Signage $1,500 $10,500
Grand Opening Marketing and Brand Identification $16,420 $27,555
Insurance (for 12 Months) $1,000 $3,000
Business Licenses and Permits $500 $1,000
Professional Fees (Lawyer, Accountant, etc.) $1,000 $5,000
Additional Funds (for 12 Months) $77,500 $155,000
Estimated Initial Investment $167,352 $506,532

 

Other Fees

Type of Fee Amount
Royalties Sliding scale of 6% to 0% of the Total Monthly Receipts.
Marketing Fund Contribution 1% of Total Monthly Receipts, not to exceed $7,525 (as adjusted from time to time by us to reflect any changes in the Consumer Price Index) per Center, per annum.
Market Builder Payments Currently $1.00 per piece of direct mail.
Local Advertising Cooperative Contributions Not to exceed 1% of Total Monthly Receipts for without approval of the Local Advertising Cooperative.
Marketing Resource Center (MRC) Fees Will vary based on project.
Domain Name Registration Initial registration fee of $100 plus a $50 renewal fee every 2 years.
Local Website Initial set up fee of $400 plus a hosting fee of $50 per month.
FranConnect (CRM) $35 per month.
FranConnect (Social Media) $15 per month.
Brand Direct 3.0 Initial set up fee of $750 plus a quarterly fee of $225
Fusion Pro One-time fee of $549
XM Pie One-time sub-licensing fee ranging from $2,000 to $5,400 plus an annual maintenance fee ranging from $540 to $1,440 (depending on franchisee’s version of XM Pie)
Optional Marketing Programs Each program will typically vary from $100 to $500
Trade Show Booth Rental Currently, approximately $150 per booth per show, plus shipping costs.
Transfer Fee Any referral fees or broker fees.
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).
Email Hosting Fee Will vary based on type of service the franchisee selects, currently $2 to $12/month per user.
Additional Assistance Expense Travel and lodging expenses incurred, plus the then applicable per diem charges (currently $250 per day per person)
Interest Lesser of 1.5% of the monthly outstanding balance or highest contract rate of interest allowed by law.
Insufficient Fund Fee Currently $25 but subject to change.
Costs, Accounting and Attorneys' fees Will vary based on circumstances.
Indemnification Will vary under circumstances.
Acquisition Retainer Fee If the franchisee retains the franchisor to provide acquisition consulting services to you regarding the potential acquisition of an independent printing and marketing communication services business, $1,000 to $2,500. (However, if these services are retained in connection with the acquisition of the original independent printing and marketing communication services business for the first Center, the franchisor will waive this fee.) If you retain the franchisor to provide limited assistance relating to business evaluation and analysis, $500.
Termination Fee For Advantage Centers:
During the Initial Term - unpaid amounts owed to the franchisor, plus a termination fee equal to $55,000 (as periodically adjusted by the franchisor to reflect any changes in the Consumer Price Index); following the initial term unpaid amounts owed to the franchisor, plus a termination fee equal to the greater of (a) $55,000 (as periodically adjusted by the franchisor to reflect any changes in the Consumer Price Index) or (b) the previous 12 months of aggregate RoyaIties paid multiplied by 5

For All Centers Other Than an Advantage Center:
Unpaid amounts owed to us, plus a termination fee equal to the greater of (a) $55,000 (as adjusted from time to time by us to reflect any changes in the Consumer Price Index) or (b) the previous 12 months of aggregate Royalties paid multiplied by 5

Liquidated Damages Will vary under circumstances.

The above information has been taken from the FDD of Allegra. Year of FDD: 2014

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