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SpeedPro Imaging Franchise Costs & Fees

Date of Incorporation: 2004
Franchising Since: 2005
Headquarters: Centennial, Colorado

Business Description: The franchisor is SP Franchising LLC. A SpeedPro Imaging franchise sells premium, large format printing, reprographics and related services to business clients.

Franchise Offer: The franchisor offers franchises to operate a single SpeedPro Imaging Studio. Studios provide premium, large format printing, reprographic services (reprographic services are reproductions of graphics through mechanical or electrical means, such as photography or xerography, commonly used in catalogs, archives, and the architectural, engineering, and construction industries), and related services.

Financial Assistance: The franchisor does not offer direct or indirect financing. The franchisor does not guarantee a franchisee’s note, lease or any other obligation.

Training and Assistance: Before the Studio opens for business, the franchisor will make available to franchisees and their employees initial training at the Studio location or, at its option, at the franchisor’s headquarters (currently located in Centennial, Colorado). The program consists of a total of 96 hours of training. Initial training for transfers is conducted on an as needed basis. It consists of a total of 64 hours of training. The franchisor periodically may require that previously trained franchisees attend and participate in retraining or refresher courses. The franchisor does not currently charge for these retraining or refresher courses but it reserves the right to charge its then-current training rates for these courses, and franchisees are also responsible for paying the costs of travel, lodging, food, and compensation for them and their employees. In addition, franchisees are required to attend the annual franchisee convention.

Territory: When franchisees sign the Franchise Agreement, the franchisor will identify an area within which franchisees will be permitted to operate the Studio. Franchisees must locate the Studio within their Territory. A typical Territory includes approximately 5,000 businesses. The Territory will be identified in the Summary Pages of the Franchise Agreement in terms of geographic boundaries.

Term of Agreement and Renewal: The length of the initial franchise term is 10 years. Franchisees have the right to renew for two additional terms of 10 years if they are not in default under the Franchise Agreement, the lease for the Studio or any other agreement relating to the Studio, and they have substantially complied with the Franchise Agreement and the Standards.

Obligations and Restrictions: Franchisees are obligated to continuously promote and enhance the Studio, including performing one-on-one awareness marketing. If franchisees are an individual, they must devote efforts to the Studio on a full-time basis and directly supervise the Studio on its premises, and must attend and successfully complete the initial training program. If the franchisee is a corporation or other legal entity, the Studio must be directly supervised, on-site by a general manager (who does not need to be an owner), who meets the franchisor’s standards and qualifications and who must attend and successfully complete our initial training program. Franchisees may offer and sell only those products and services that the franchisor authorizes for sale and those products and services not prohibited from sale by the terms of the lease of the premises upon which the Studio is located. In addition, the Studio may not be used for any purpose other than as allowed by the Franchise Agreement.

Estimated Number of Units: 175

Investment Tables:
Initial Investment
Name of Fee Low High
Initial Franchise Fee $49,900 $49,900
Start-Up Fee $149,500 $249,000
Leaseholds Improvements $0 $80,000
Rent and Security Deposit $3,000 $8,000
Training and Travel Expenses $4,000 $9,000
Business Permits and Licenses $0 $1,000
Business Insurance Premiums (one year) $800 $1,300
Grand Opening Marketing $2,000 $10,000
Vehicle Wrap (per vehicle) $1,000 $3,000
Utility Deposits $0 $1,000
Professional Fees $2,000 $5,000
Additional Funds (3 months) $20,000 $50,000
ESTIMATED TOTAL $232,200 $467,200
Other Fees
Type of Fee Amount
Royalty Fee 6% of monthly Gross Sales (subject to Royalty Rebate).
Ad Fund Contribution Up to 2% of monthly Gross Sales.
Minimum Local Advertising Expenditure 2% of Gross Sales.
Cooperative Advertising Expenditure Up to 2% of Gross Sales.
Additional and Advanced Training, Conferences, and Seminars Costs for instructors, materials, training aids, and expenses.
Annual Franchisee Convention Required convention fee (which is currently $250 but may be increased by the franchisor at any time, not to exceed $999), which is due and payable to the franchisor regardless as to whether franchisees choose to attend such convention, plus travel, lodging, and expenses to attend.
Supplier Approval/Inspection Fee Reasonable cost of the inspection plus reimbursement of travel and other out-of-pocket expenses incurred in connection with testing.
Successor Fee $10,000
Transfer Fee $10,000
Additional Training Fee Upon Transfer Up to $7,500
Broker Commission Variable.
Software System Monthly Fees The then-current fees. Fees current as of the date of this disclosure document: $125 per month for our basic technology system, or $250 per month for an enhanced technology system. These fee amounts may increase from time to time, upon 60 days’ notice from us.
Email Address(es) License Fees $7 per month per email account.
Data Storage/Transfer Fees $15 per month.
Vehicle Template Library License Fees $79 per year.
Indemnification Amount of liability, costs, and expenses.
Reimbursement of Expenses the Franchisor Advances on the Franchisee’s Behalf Amount of expense advanced plus interest.
Improvements, Updates, and Upgrades Cost of improvements, updates, and upgrades.
Audit-Related Expenses Audit-related costs and expenses if an audit reveals an understatement of Gross Sales of 3% or greater.
Interest Prime Rate plus 3% or maximum rate permitted by law, whichever is less, on all amounts not paid when due.
Late Fee $100
Additional Onsite Training and Opening Assistance Travel, lodging, expenses and the then-current training fee.
Modifications to Marks Varies.
Site Selection The franchisor’s expenses.
Relocation Costs Costs and expenses of relocation.
Insurance Service Charge The full cost of insurance, plus all costs the franchisor incurred to secure such insurance for the franchisee not to exceed 18% of the policy premium.
Termination Payment The average Royalty Fee payment paid by the franchisee to the franchisor during the 12-month period preceding the effective date of termination, multiplied by the lesser of (i) 36 or (ii) the number of months remaining in the term of the Franchise Agreement had the Franchise Agreement not been terminated.

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

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