AlphaGraphics Franchise

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AlphaGraphics Franchise

AlphaGraphics’ marketing and advertising franchises allow you to own a business for yourself, but not by yourself. This may be the printing and marketing franchise opportunity you’ve been looking for. The AlphaGraphics Discovery Process provides an opportunity for you to learn all of the details of owning a printing and marketing franchise business from AlphaGraphics so that you can make an informed decision for yourself and your family. Along the way, we’ll get to know each other better and evaluate a mutual fit based on your goals and aspirations and the many benefits of an AlphaGraphics franchise. Reach out to start your marketing business today!

Year Business Began: 1970

Franchising Since: 1980

Headquarters: Lakewood, Colorado

Estimated Number of Units: 265

Franchise Description: AlphaGraphics, Inc. is the franchisor. The franchisor is a wholly owned subsidiary of its parent, U.S. Business Holdings, Inc. The franchise offered is for an AlphaGraphics business center, which provides customized print and marketing solutions 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 four 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. Franchisees or their managing owner must complete the additional initial steps of the training programs (steps 2, 3 and 4) as follows: (i) step 2 of the training (new franchisee 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 6-8 weeks from the soft opening of the business center; (ii) step 3 of the training (signs certification) which is mandatory for new business center franchisees only and must be completed within the first 30 days of the opening date of the business center; and (iii) step 4 of the training (PrintSmith Vision certification) within 90 days of the effective date of the Franchise Agreement. The franchisor may require that franchisees or the managing owner complete all supplemental and refresher training programs that it designates. Franchisees may request additional or special training or assistance of franchise personnel. The franchisor will also connect franchisees with a qualified fellow owner in their area to offer support, assistance, and advice.

Territory Granted: The Franchise Agreement will identify a protected area in which franchisees will have certain rights. Generally, a franchised business center will receive a protected area containing approximately 1,000 targeted businesses with five or more employees. Franchisees will not receive an exclusive territory. Franchisees may face competition from other franchisees, from outlets that the franchisor owns, or from other channels of distribution or competitive brands that the franchisor or its affiliates acquires and controls.

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.

Investment Tables:

Estimated Initial Investment
Name of FeeLowHigh
Initial Franchise Fee$48,950$48,950
Opening/Reopening Performance Package$10,000$10,000
Center Development Package

$142,750

$167,450

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

 $2,450

 $4,900

Additional Funds (12 months)$50,000$74,000
ESTIMATED TOTAL*$281,500$389,450

*The estimated initial investment range is for a new business center. Range does not include real estate purchase or lease costs.

Other Fees
Type of FeeAmount
Royalty (Ongoing)Royalties range from 7% down to 3% of gross sales, subject to a yearly minimum. Royalty rates decline as annual sales volume increases.
Alpha-Graphics Integrated Marketing Fee (AIM Fees) (Ongoing)2.5% of the franchised business center’s gross sales. Currently the franchisor caps AIM Fees at $15,600/year for the first franchised business center and $7,800/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: $1,148.50 – 1,666.17 per month currently.
Optional: $0 - $357 per month currently.
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$300
Network Conference Registration Fee (Ongoing)Then-current fee (currently $750 per person).
Additional or Refresher Training$800 - $1,500 per day.
Transfer Fee (if applicable)$48,950
Renewal Fee30% 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 - $15,000
Liquidated Damages (if applicable)Based upon formula in FDD.
Insurance (if applicable)Cost of insurance.
Indemnification ExpensesAll costs associated with the franchisee’s obligation to indemnify.
Non-Compliance Fee2.5% of gross sales.

 

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