AlphaGraphics Franchise Costs, Fees & FDD

Year Business Began: 1970

Franchising Since: 1980

Headquarters: Lakewood, Colorado

Estimated Number of Units: 250

Franchise Description: AlphaGraphics, Inc. is the franchisor. The franchisor is a wholly owned subsidiary of its parent, U.S. Business Holdings, Inc, which is a wholly owned subsidiary of its parent, MBE Worldwide S.p.A. The franchise offered is for an AlphaGraphics business center, which provides customized print and marketing communication products and services to businesses. The products and services produced by an AlphaGraphics business center may include: graphic design, offset and digital printing, bindery, mailing and fulfillment, multi-channel marketing campaigns, e-commerce, large format graphics, traditional signage and point of purchase, vehicle wraps, promotional products, direct mail, packaging, business identity and brand awareness solutions, and other visual communications services. Currently, franchisees may develop their business center through one of the three following pathways: develop a new business center, acquire an existing graphics related business and convert to a business center, or convert an existing graphics related business to a business center.
Training Overview: Franchisees (or if they are an entity, the managing owner) must attend and successfully complete, an initial training program on the operation of a franchised business center at a place and time the franchisor designates. Franchisees or their managing owner are required to complete each of the steps of the training program. Step 1 is self-directed e-learning (Core Training) as the franchisor assigns to franchisees at their franchised business center. Step 2 of the training (Initial Owner Training) must be completed within the first 30 days of the effective date of the Franchise Agreement, with the exception of new business center franchisees who must complete new franchisee training eight weeks from the soft opening of the business center. Step 3 includes extended Sales, Marketing, Finance & Operations Training and Support over the first year of operation in the franchisee’s business center. The franchisor will also connect new franchisees with a qualified fellow owner as a mentor to offer support, assistance, and advice. The franchisor may require that franchisees or the managing owner complete all additional and refresher training programs that it designates.

Territory Granted: During the term of the Franchise Agreement, if franchisees are in compliance with the Franchise Agreement and all other agreements they or their affiliates may have with the franchisor, the franchisor will not establish or operate, or franchise any entity to establish or operate, another AlphaGraphics center at any location within the territory described in the Franchise Agreement. Generally, a franchised business center will receive a protected area containing approximately 4,000 total businesses. However, a protected area might differ.

Obligations and Restrictions: The franchised business center must at all times be under the franchisee’s direct supervision or, if the franchisee is an entity, a “managing owner” who the franchisor has approved. If franchisees are an entity, they must designate one of the owners as the managing owner. The managing owner must be a natural person who owns a controlling interest in the franchise (at least 1/3 or 1/2 of the voting shares, depending on how many owners) and has the authority of a chief executive officer. If franchisees are an individual, they are the managing owner. During the term of the Franchise Agreement, franchisees may not hold an interest in (other than nominal amounts) or perform services for a business that operates or grants franchises or licenses any third parties to operate or otherwise offers products or services similar to those offered by the franchisor. Franchisees must offer and sell at the franchised business center all services and products that the franchisor periodically requires for AlphaGraphics franchises. Franchisees cannot offer or sell any services or products that the franchisor has not authorized.

Term of Agreement and Renewal: The length of the initial franchise term is 10 years. If franchisees are in good standing, they can renew their Franchise Agreement for one renewal term of 10 years on the then-current terms.

Financial Assistance: The franchisor does not offer direct or indirect financing, nor does it guarantee a franchisee’s note, lease or any other obligation. Most new franchisees obtain financing from third-parties or self-fund. The franchisor may provide assistance in helping franchisees understand funding choices and requirements. The franchise is listed on the SBA Franchise Registry, which may provide franchisees with faster SBA loan processing. The franchisor participates in the IFA’s VetFran program and the IFA’s Diversity Discount Initiative. Under these programs, if qualified, franchisees will receive a discount off the initial franchise fee.

Estimated Initial Investment

Name of Fee	Low	High
Initial Franchise Fee	$49,750	$49,750
Opening/Reopening Performance Package	$14,500	$14,500
Center Development Package	$152,089	$152,089
MIS System (PrintSmith Vision)	$15,000	$15,000
CRM System (Print Speak)	$250	$250
agOnline System	$1,500	$1,500
Real Estate Deposits & Leasehold Improvements and Construction	$10,000	$40,000
Digital Printing Equipment	$0	$3,600
Finance Costs	$0	$17,000
Miscellaneous Opening Costs	$600	$6,800
Travel and Expense for Training	$2,100	$4,200
Additional Funds – 12 months	$50,000	$74,000
ESTIMATED TOTAL (new business center)	$295,789	$378,689

 
Other Fees

Type of Fee	Amount
Royalties (Ongoing)	Royalties range from 7% down to 3% of gross sales, subject to a yearly minimum. Royalty rates decline as annual sales volume increases.
Brand Fund Fees (Ongoing)	2.5% of the franchised business center’s gross sales. Currently the franchisor caps brand fund fees at $24,906/year for the first franchised business center and $12,376/year for each additional franchised business center, subject to a yearly minimum.
Managed Services Program Fee for the Franchisor’s Managed Services Program (Ongoing)	Mandatory: $1,526.16 – $2,044.16 per month currently. Optional: $0 - $1,052.83 per month currently.
Local Advertising Requirement	$850 per month.
PrintSmith Vision Fee (One-Time)	$15,000
Print Speak CRM System Fee (One-Time)	$250 - $750
agOnline System Fee (One-Time)	$1,500
Accounting Software	$780
Network Conference Registration Fee (Ongoing)	Then-current fee (currently $725 per person).
Additional or Refresher Training	$800 - $1,500 per day.
Transfer Fee (if applicable)	$49,750
Renewal Fee	30% of then-current initial franchise fee for new centers.
Interest (if applicable); Late Fee (if applicable)	Interest at the lesser of 1.5% per month or highest contract rate of interest applicable law permits; late fee of $25 or maximum legal rate for each delinquent payment.
Audit & Legal Fees (if applicable)	$3,000 - $5,000
Liquidated Damages (if applicable)	Based upon formula in FDD.
Insurance (if applicable)	Cost of insurance.
Indemnification Expenses	All costs associated with the franchisee’s obligation to indemnify.
Non-Compliance Fee	2.5% of gross sales.

The above information has been compiled from the FDD of AlphaGraphics. Year of FDD: 2025.
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