Year Business Began: 2004
Franchising Since: 2005
Headquarters: Centennial, Colorado
Estimated Number of Units: 160
Franchise Description: The franchisor is SP Franchising LLC. The franchisor has two parents: Fairfield SPF, Inc. and SP IP LLC. The franchisor offers franchises to operate a one or more SpeedPro Imaging studios. Studios provide premium, large format printing, reprographic services (reprographic services are reproductions of graphics through electrical means, such as photography, commonly used in catalogs, archives, and the architectural, engineering, and construction industries), and related services, including removal, installation, consulting, site evaluation, graphic design, finishing, production services and technology driven smart signage, interior and exterior digital displays. SpeedPro Imaging franchisees sell products and services primarily to commercial clients.
Training Overview: Franchisees and their control person must attend and complete the initial training program to the franchisor’s satisfaction before they are permitted to open their SpeedPro studio. The initial training program is held at the franchisor’s headquarters (currently located in Centennial, Colorado) and/or another location designated by the franchisor. (However, due to COVID-19, the franchisor may at times offer the initial training program virtually, where the same curriculum is taught via distance learning.) The program consists of a total of 167 hours of training. The franchisor periodically may require that previously trained franchisees attend and participate in retraining or refresher courses. In addition, franchisees are required to attend the annual franchisee convention.
Territory Granted: When franchisees sign the Franchise Agreement, the franchisor will identify an area within which franchisees will be permitted to operate their studio. Franchisees must locate the studio within the territory. The territory shall include up to but no more than 7,000 businesses based on the franchisor’s sole discretion. The territory will be identified in the summary pages of the Franchise Agreement in terms of geographic boundaries. During the term of the Franchise Agreement, the territory will be exclusive to the extent that the franchisor will neither locate nor grant others the right to establish another SpeedPro Imaging studio in the territory. However, franchisees may face competition from other channels of distribution or competitive brands that the franchisor controls, and it and its affiliates reserve all other rights not specifically granted to franchisees under the Franchise Agreement.
Obligations and Restrictions: Franchisees may be an individual, corporation, partnership or other form of legal entity. Franchisees must have a control person, who is an individual with authority to actively direct the business affairs of the studio, is responsible for overseeing the general management of the day-to-day operations of the studio and has authority to sign on the franchisee’s behalf all contracts and commercial documents. Franchisees are obligated to continuously promote and enhance the studio, including performing sales and marketing activities. 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.
Term of Agreement and Renewal: The length of the initial franchise term is 10 years. Franchisees have the option to renew for one additional term of 10 years. Subsequent renewals are to be negotiated in good faith with the franchisor.
Financial Assistance: The franchisor does not offer direct or indirect financing.
| Name of Fee | Low | High |
|---|---|---|
| Initial Franchise Fee | $49,500 | $49,500 |
| Start-Up Fee | $123,040 | $123,040 |
| Initial Marketing Fee | $20,000 | $20,000 |
| Technology Monthly Fee for the First 3 Months | $1,050 | $1,050 |
| Leasehold Improvements | $2,500 | $30,000 |
| Furniture & Fixtures | $3,190 | $3,400 |
| Rent and Security Deposit | $3,000 | $12,000 |
| Training and Travel Expenses | $2,000 | $3,500 |
| Business Permits and Licenses | $100 | $1,200 |
| Business Insurance Premiums (one year) | $800 | $1,500 |
| Utility Deposits | $100 | $1,200 |
| Professional Fees | $1,500 | $4,000 |
| Working Capital (3 months) | $45,000 | $75,000 |
| ESTIMATED TOTAL | $250,730 | $327,340 |
| Type of Fee | Amount |
|---|---|
| Royalty Fee | Beginning the 13th month from the effective date of Franchise Agreement, the greater of (a) 6% of gross sales up to $60,000; and 4% of gross sales from $60,001 and above; or (b) the minimum royalty fee. |
| Marketing Fund Fee | Up to 2% of monthly gross sales. |
| Insurance Premium Charge | The cost of insurance premium for the franchisor’s required insurance. |
| Insurance Admin Fee | The franchisor may require franchisees to obtain their required insurance from its designated suppliers. If the franchisor requires this, it may charge franchisees an insurance admin fee. The franchisor does not currently charge this fee. |
| Additional and Advanced Training, Conferences, and Seminars | Costs for instructors, materials, training aids, and expenses. |
| Annual Franchisee Convention (if held) | The convention fee is currently $275 but may be increased at any time up to $550. Franchisees will also pay their travel, lodging, and expenses to attend. |
| Renewal Fee | $10,000 |
| Transfer Fee | $10,000 |
| Business Training Fee | $2,500 |
| Live In-Studio Production Training | $2,500 |
| Vehicle Template Library License Fees | $79 per year. |
| Improvements, Updates, and Upgrades | Cost of improvements, updates, and upgrades. |
| Audit and Inspection Related Expenses | Audit-related costs and expenses if an audit reveals an understatement of gross sales of 2% or greater. Then current mystery shopper expenses if used. Current mystery shopper expenses are $200 per visit. |
| Modifications to Marks | Varies. |
| Site Selection | The franchisor’s expenses. |
| Technology Fee | $350 per month. |
| Indemnification | Amount of liability, costs, and expenses. |
| Interest | 18% or maximum rate permitted by law, whichever is less, on all amounts not paid when due. |
| Late Fee | The greater of (a) 20% of the overdue amount, subject to applicable law; or (b) $100. |
| Late Report Fee | $100 |
| 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 20% 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 (a) 36 months or (b) the number of months remaining in the term of the Franchise Agreement had the Franchise Agreement not been terminated. |
| Liquidated Damages for Client Poaching | Twice the total revenue franchisees receive from the client that they solicited away from the franchisor, its affiliate or its franchisee. |
The above information has been compiled from the FDD of SpeedPro Imaging. Year of FDD: 2022.
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