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Allegra Franchise Cost & Fees

Date of Incorporation: 1976
Franchising Since: 1977
Headquarters: Plymouth, Michigan

Business Description: Allegra (and related franchises American Speedy Printing and Insty-Prints Centers) provides marketing and business communication services, including strategic planning and consulting, sales literature, direct mail advertising, web development, copywriting, graphic design, printing, mailing, e-mail marketing and more to its customers.

Franchise Offer: The franchisor offers five types of franchise options:

  1. Franchises for start-up Allegra Centers known as Allegra Marketing*Print*Mail Centers (each, a “New Center”) that focus on the growing marketing needs of small- to medium-sized businesses.
  2. Franchises for the acquisition of independent printing and marketing and business communication services businesses through the franchisor’s MatchMaker program.
  3. Franchises to owners of independent printing and marketing and business communication services businesses who want to retain ownership of their businesses and, through the franchisor’s Advantage program, convert their businesses to an Allegra Center meeting the franchisor’s standards and specifications.
  4. Franchises to purchasers of existing Allegra, American Speedy Printing, and Insty-Prints Centers.
  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 franchisees 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 marketing and business communication services and related products. 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 the franchisor’s specifications and marketing plans for certain brands of products, materials and supplies.

Estimated Number of Units: 275

Investment Tables:
Initial Investment for New Centers
Name of Fee Low High
Initial Franchise Fee $45,000 $45,000
Training Expenses $1,800 $3,950
Rent Deposit $0 $4,000
Utility Deposits $750 $3,500
Software and Equipment $3,349 $99,871
Fixtures, Furniture and Inside Signage $1,090 $17,250
Leasehold Improvements, Construction, Remodeling and Decorating $2,700 $7,500
Exterior Signage $1,500 $8,500
Marketing and Brand Identification $14,205 $31,131
Insurance (for 12 months) $2,450 $8,575
Business Licenses and Permits $500 $1,000
Professional Fees( layer, accountant, etc.) $1,000 $5,000
Down Payment on Business $77,500 $205,000
Additional Funds (for 12 months) $51,500 $135,000
ESTIMATED TOTAL $202,254 $558,027
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 $8,055 (as adjusted from time to time by us to reflect any changes in the Consumer Price Index) per Center, per annum.
Direct Mail $4,300 to $8,700 per year.
Virtual Sales Manager Program $4,500
Pay-Per-Click Advertising $2,400 to $6,000 per year.
Local Advertising Cooperative Contribution 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.
Local Website Initial set up fee of $400, plus a hosting fee of $50 per month.
FranConnect (CRM) Franchise Management System $35/per month.
Brand Direct Online Ordering and Document Management System) Initial set up fee of $750 plus a quarterly fee of $225
WorkStream eCommerce Initial set up fee of $750 to $3,995, plus a monthly fee of $435 to $3,000
Convention Registration Fees The then-current registration fee (currently, $549)
Optional Marketing Programs Each program will typically vary from $100 to $500
Transfer Fees 20% of the then current initial franchise fee charged for an Existing Center, plus any referral fees or broker fees.
Audit or Inspection Cost of audit, including the charges of any independent accountants, travel expenses and per diem personnel charges (currently $ 1,000 per day per person).
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.
Insurance Amount needed to reimburse the franchisor for mandatory insurance coverage.
Costs, Accounting and Attorneys' Fees Will vary under the circumstances.
Indemnifications Will vary under the circumstances.
Acquisition Retainer Fee If the franchisee retains the franchisor to provide acquisition consulting services to you regarding the potential acquisition of an independent marketing and business communication services business, $1,000 to $2,500. (However, if these services are retained in connection with the acquisition of the original independent marketing and business communication services business for the first Center, the franchisor will waive this fee.) If franchisees 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 Royalties 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 the circumstances.

The above information has been taken from the FDD of Allegra. Year of FDD: 2016

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