Franchise OppOrtunity - bizbuysell.com · *As ranked in Franchise Times Magazine, October 2009. a...
Transcript of Franchise OppOrtunity - bizbuysell.com · *As ranked in Franchise Times Magazine, October 2009. a...
Franchise OppOrtunityin the multi-billion dollar market
for marketing and graphic communications
Marketing
Printing
SignS
Mail ServiceS
graPhic DeSign
BrochureS & newSletterS
exhiBitS & DiSPlayS
Direct Mail
aDvertiSing
weB SiteS
BranDing
weB-to-Print
anD More…
Welcome to allegra netWork
O f the more than 3,000 global franchisors,
allegra network® ranks within the
world’s top 200 franchisors according to
Franchise times magazine. among business-to-
business (B2B) opportunities, we rank near the
very top … and have for decades.
established in 1976 and formerly known as
american Speedy Printing centers, we adopted
the allegra network corporate name in 2000.
today, through acquisition and organic growth, the
network totals nearly 500 independent business
owners who operate primarily two franchise brands
— allegra® Marketing • Print • Mail and Signs
now®. annual system-wide sales in 2009 were
nearly $300 million.
allegra network is privately owned by an investor
group including Michael Marcantonio, former v.P.
of Domino’s Pizza, thomas S. Monaghan,
founder of Domino’s Pizza and members of the
management team.
our leadership team was among the first to
believe industry pundits who predicted a long term
evolution in the graphic communications industry
— from printing and signs to full service marketing
communications. in fact, allegra network’s
aggressive plan to help transition our franchise
members from printers to full service marketing
providers dates back to 2005 when the company
launched “think Beyond ink” at its international
convention. this diversification initiative assisted
our franchise members in expanding their service
offering from digital and offset printing to include
value-added services such as variable data, signs
and banners, promotional products and mailing
services as well as marketing consultation,
strategic planning and creative development.
our success and that of our franchise members
is a direct result of living our corporate mission;
to enhance the value of the businesses we
serve. this booklet will introduce our business
opportunities, explain the strengths of the markets
we serve, and describe the many ways we help our
franchise members succeed.
while this booklet will anticipate and answer many
of your questions, it certainly won’t answer them
all. with that in mind, we encourage you to contact
us to arrange an initial phone conference. there’s
no obligation, of course. and, it’s the best way to
learn if one of our business models in the exciting
world of marketing and graphic communications
is your route to the advantages and fulfillment of
independent business ownership.
Thank you for your interest.
*As ranked in Franchise Times Magazine, October 2009.
a multi-Billion Dollar market opportunity
virtually every small and medium-sized business
and institution (e.g., medical, education,
government and non-profit organizations) requires
digital or printed promotional and informational
materials of the type offered by allegra® Marketing
• Print • Mail centers. a high percentage of
allegra customers will generate frequent reorders
of consumable printed materials and promotional
products. what’s more, full-service allegra clients
are often placed on a retainer compensation
system when ongoing marketing program
management services are desired.
typical allegra customers range from those
requiring printing and mailing services only, to
those looking for strategic planning and
implementation of all phases of their marketing
communications programs.
conservatively speaking, the national markets for
these services per u.S. census Bureau information
(2007) are in the billions:
• graphic design services: $8.4 billion
• Marketing consulting services: $21 billion
additional figures from the census Bureau depict a
considerably larger market:
• advertising, public relations and related
services: $89 billion
• Printing and related support activities (selected):
$60 billion
Conclusion? Demand for the products and services
provided by this franchise concept is enormous.
now for the details on the business model to
capture a healthy, local share…
mar
keti
ng s
ervi
ces
The AllegrA MArkeTing • PrinT • MAil opportunity at a glance
you will determine the scope of
capabilities you provide and with
the help of your regional operations
director — offer as many or as few
as you desire, then add additional
services at your own pace.
Here’s the full list of services that can be offered:
STRATEGIC AND TACTICAL
PLANNING
• Market research
• Strategic consulting & planning
• tactical planning & executions
• ad planning & media buying
• Direct-marketing
campaign planning
• web-based promotional planning
CREATIVE DEVELOPMENT
• copywriting
• event planning
• graphic design
• logo design
• email marketing
• web site design & development
HIGH-IMPACT COMMUNICATION
TOOLS
• advertisements (print,
broadcast, online)
• Brochures and pamphlets
• Business forms
• Business cards & stationery
• Direct mail campaigns
• e-mail marketing
• event & meeting materials
• logo designs/corporate
identity kits
• newsletters & e-newsletters
• owner manuals
• Posters & banners
• Promotional/logo products
& apparel
• Sales sheets
• Standard & oversized postcards
• technical documents
• trade show graphics
• training manuals
• web-to-print solutions
ADVANCED PRODUCTION AND
FULFILLMENT SERVICES
• Database management services
• variable-data printing
• one- & two-color printing
• Full-color offset printing
• F ull-color, short-run digital printing
• high-volume copying
• web-to-print solutions
• Bindery services
• complete finishing services
• Mailing services
• Pick-up and delivery services
• Print fulfillment services
Allegra Marketing • Print • Mail centers provide graphic design, printing, mailing, and strategic marketing consultation services, as well as sales promotion products to small and medium-sized businesses, non-profits, and institutions.
CREATIVE & CONSULTING SERVICES
THROUGH THE ALLEGRA MARKETING
RESOURCE CENTER
the allegra Marketing resource center
(Mrc) is a headquarters-based resource for
helping franchise members a little or a lot with
market research, marketing communications
planning, copywriting, design and other project
development functions.
For allegra® Marketing • Print • Mail centers
without in-house staff or local resources, a
telephone call or e-mail connects them to a
host of subject-matter experts and creative
talent to plan and implement client programs
and projects.
Participating franchise members gain access
to a wealth of professional reference materials
and specialty marketing programs to promote
their ability to deliver strategic insight and top
quality materials.
the Marketing resource center enables all
our members to participate in the huge
demand for marketing services whether they
are starting a brand new center or purchasing
an existing business.
A PROVEN BUSINESS MODEL
the allegra® business model is among the most successful in all
of franchising, and for many good reasons. it offers you access
to a large and stable market that needs what you sell. it can
provide significant income and equity growth that’s controlled
by you. it’s a business that involves creativity, as well as the
satisfaction of producing high-value products to drive customer
success. equally as important, it’s a career choice that allows an
excellent work/life balance with B2B business hours.
Three ways to own an Allegra center include:
Allegra MatchMaker® Program
unique to franchising, we help entrepreneurs enter the industry
by purchasing an existing independent marketing and print
business and converting it to an allegra center through our
MatchMaker® program.
with an established customer base, experienced staff and
proven track record in the market, our MatchMaker® program
offers distinct advantages over most franchise opportunities.
our staff, in particular our seasoned mergers and acquisitions
managers, play a lead role in helping marketing and print
business owners sell, and new owners succeed.
New Allegra Center
an allegra® Marketing • Print • Mail center is a B2B start-up
opportunity to build your business from the ground up. usually
situated in approximately 1,500 to 2,000 square feet of space
located in an area containing other commercial companies.
while these allegra centers provide businesses and institutions
with a full range of marketing services, unlike the other models,
there are no offset printing presses on site.
typical beginning staff includes a graphic design/print
production/mailing services professional, a customer service/
sales representative, and the operating owner who concentrates
on general business management and sales. this opportunity
typically offers a lower investment than our MatchMaker®
program.
Existing Allegra Center
candidates buying existing franchise centers enjoy the benefits
of purchasing an allegra branded location, while having the
opportunity to make that business their own with the support of
our proven business systems. contact us to learn if an existing
allegra center may be for sale in your area.
Four reasons to investigate Further
1. Exclusive benefits from an established and financially healthy franchisor
as an allegra network franchise member, you’ll be
part of a stable franchise company with impressive
longevity and one-of-a-kind programs.
• a franchise model that’s proven for more than
three decades.
• Supported by a perennial top 200
franchise company.
• Supported executive management with more
than 100 years* combined franchising and
graphic communications expertise.
• an investor group with substantial financial
reserves and ready access to capital.
• top-rated training, support and management
guidance for every aspect of the business —
financial, operational, marketing and sales.
• royalty (sliding scale of 6%-0%) and Marketing
Fund (1%) caps. royalties are based on receipts
(the actual money collected) versus sales.
• national contracts Program: we negotiate
special pricing, services and other discounts
from more than 200 selected supplier partners
to drive local competitive advantage for you.
• Partnering with a franchisor that has
successfully completed nearly 200 mergers
and acquisitions.
2. Outstanding Profit Potential
as you consider the earnings potential1 of an
allegra® Marketing • Print • Mail franchise,
consider these important points:
• a business with multi-million dollar sales
potential from a single location.
• 21.7% of our centers (67 locations) exceed
$1 million in sales.
• 6.8% of our centers (21 locations) exceed
$2 million in sales.
• average annual sales for allegra centers in
2009 was $878,880.
• Median profitability2 for high profit centers
is 19.44%3.
• Median number of employees is 6.
• typical client base involves several dozen
diverse customers — volatility and risk tend to
be low compared to businesses dominated by
a few customers.
1. Detailed information
regarding earnings
potential, center
count, sales volume
and average sales can
be found in Item 19 of
the FDD.
2. This is the percentage
of profit retained
by the franchisee,
including owner(s)
salary, benefits and
taxes, plus the net
income or minus the
net loss.
3. For all centers
par ticipating in
Allegra Network’s
2009 Operating
Ratio Study.
*See item 2 of Franchise Disclosure Document
3. A Business That Allows A Personal Life & Provides Professional Fulfillment
More than 75 percent of our new franchise members have come
from corporate america. these individuals wanted the control
over their own destiny that business ownership affords. they also
wanted to flee the long hours, constant travel, office politics and
bureaucracy that often come with the corporate life. they wanted
to “get a life” when they changed careers, as well as build long-
term equity while enjoying a very comfortable living today. these
goals are all within easy reach.
as a Business-to-Business (B2B) enterprise, center hours are
typically limited to an 8:00 to 5:30 day, Monday through Friday.
Sure, some extra hours are required the first couple years
and from time to time to provide top customer service. But,
compared to any retail or other Business-to-consumer (B2c)
franchise, the ability to strike a healthier work/life balance is
almost infinitely greater with our model. consider, too, that most
of your customers will be other leaders and managers within
the business and institutional community. you’ll not only form
business relationships, but personal relationships as well. this
is another dimension of the professional character of owning an
allegra® Marketing • Print • Mail.
Finally, consider that the staff you’ll manage will be experienced
professionals who have sought a career in the graphic
communications industry. it’s unlikely you’ll face the
rapid turnover and constant training required in
other small businesses where a career path
doesn’t really exist. all of these factors
combined make allegra® Marketing
• Print • Mail a business that
can be both financially
rewarding, as well as
personally fulfilling.
4. An Unmatched Support System Drives Future Success
Perhaps the single most important reason to seriously consider
an allegra franchise is access to people and programs that have
proven their ability to drive future growth and success.
it’s trite, but true. we don’t succeed unless you do. and we’ve
developed more than 50 industry-leading support programs to
foster your success. a small sampling is listed below and on the
following page.
TRAINING
• three full weeks of start-up training: two at allegra network
headquarters; the other at your center’s location.
• top-rated training, support and management guidance
for every aspect of the business — financial, operational,
marketing and sales. this also includes specialized industry
sales training — face-to-face and online — through
allegra network university.
Four reasons to investigate Further continueD
MARKETING & SALES DEVELOPMENT
• award-winning, high-performance marketing support
programs from teleprospecting and lead generation direct
marketing to public relations and web optimization. these are
turnkey programs proven to drive business your way.
• Marketing Resource Center: allegra network headquarters-
based professional service organization for members to
develop and implement customer marketing programs
and projects — advice, copywriting, graphic design, web
development, and more. a new business development
strategy to drive long-term growth in every local market.
• Acquisition Program: if desired, we’ll help you aggressively
grow your business with acquisitions of a competitor or a
complementary service business. we’ll find, evaluate and
qualify prospects for purchase, then assist with price and
terms negotiation, as well as closing and transitioning
the accounts into your business. our model allows
significant growth in single-unit operations compared
to other franchises.
TECHNOLOGY
• leading-edge digital technologies to support a wide range of
customer needs.
• help desk support with fast answers on equipment selection,
computer systems, pricing, and more from our best-in-class
technology group.
PROFIT MASTERYTM AND OPERATIONS
• innovative Profit Mastery Program for ongoing financial
modeling and performance improvement, including “peer
based” Performance group interactions.
• Personal business consulting – you will work with a regional
operations director with extensive industry experience on
virtually all facets of the business. Many are former franchise
members who have successfully built and sold
their businesses.
EXIT STRATEGY SOLUTIONS
• Resale Program: also unique in franchising, when it’s time
to transition away from your business, our Development
Department identifies buyer candidates, qualifies them
and guides you and the new owner through the steps to
successfully sell your business.
Financial requirements
FRANCHISE FEE
SOFTWARE AND EQUIPMENT
includes PoS software, digital printing, mailing
service and sign-making equipment (typically
leased).
TRAINING
Meals and lodging for those attending the training
program.
FIXTURES, FURNITURE AND INSIDE SIGNAGE
includes counters, shelving and the decorative
items necessary to give the facility the standard
allegra center appearance.
LEASEHOLD IMPROVEMENTS, CONSTRUCTION,
REMODELING AND DECORATING
covers the expenses associated with preparing the
space for occupancy, such as electrical work, dry
wall, carpeting and decorating.
EXTERIOR SIGNAGE
covers all necessary exterior signage (varies by
location and building design).
GRAND OPENING, MARKETING AND
BRAND IDENTIFICATION
includes lobby remodeling, MarketBuilder,
iSite, conversion and initial marketing expenses.
DEPOSITS AND INSURANCE
includes rent and utility deposits, as well as
general business insurance, licenses and permits,
plus rent for the first month.
DOWN PAYMENT
INVENTORY
WORKING CAPITAL
estimated cash to operate the center while the
business or receivables are being established.
The initial investment for a new Allegra Marketing • Print • Mail center ranges from $166,000-$525,000* and $254,000-$508,000* for a MatchMaker® center. Both include working capital and all start-up expenses, but do not include living expenses. Qualified candidates typically require a minimum of $200,000 of available cash and must be able to document a minimum of $500,000 net worth. The initial investment includes the following:
* Range indicates leasing and/or buying and depends
on choices or types and the amount of in-house
equipment capability desired. Equipment costs
for MatchMaker® centers will be minimal since
majority will already be in place.
The specific investment ranges are outlined in the
Allegra Advantage Franchise Disclosure document
in item 7.
here’s What our Franchise memBers have to say…
“the programs and services from the home office are tremendous. that’s
part of the reason we decided to go with allegra. we felt like their model was
supportive of the day-to-day success of the franchisee. you don’t find that in
every franchise organization.”
CRAIG DOUGLAS, ALLEGRA Owner
SPRING BRANCH, TEXAS
“i have realized my income expectations. i’ve exceeded my expectations.
that’s the beauty of owning this business — it’s really as limitless as you want
it to be. if you focus and work hard and grow your business, the more you
produce, the more income you earn. it’s a very simple model.”
WALTER MCGINN, ALLEGRA Owner
OTTAWA, CANADA
“i can’t really tell you what it might be like in another franchise, but i can
tell you that with this franchise, you get the kinds of support that i think an
entrepreneur needs to succeed. the support that allegra gives in teaching
us how to read financial statements, Performance groups, the Profit Mastery
Program has helped us tremendously. as a member of the network, you also
have access to lots of people who have been through this before. you can
learn as much from them as you do from the home office.”
JERRY AND SUE LOW, ALLEGRA Owners
BROOKLYN PARK, MINNESOTA
“what made me choose allegra over other business opportunities was that
i felt that it was a good model. it fit my comfort level in running a business
without a lot of cookie cutter structure. each allegra can be customized to the
area that you’re in, the kind of businesses that you serve, and really to your
own temperament. if you want to do more marketing or you want to expand
into other areas, it’s easier to do that than, say, maybe in another franchise
model. when i started analyzing the financials, i also realized that the
profitability and sales potential was very good compared to other industries
that i looked at.”
PAT FINNEY, ALLEGRA Owner
SEATTLE, WASHINGTON
the allegra netWork opportunity aWaits: take the next step.
you’ve had a chance to review our allegra® Marketing •
Print • Mail offering and benefits of becoming part of
our network of nearly 500 members.
as a next step, we encourage you to speak with one of
our development managers on any questions you may
have regarding this franchise opportunity. During the
course of the call we’ll ask about your goals and be
prepared to answer all your additional questions about
us. there’s no obligation and of course, all inquiries are
handled with complete confidentiality.
This adver tisement is not
an of fering. An of fering
can only be made by a
prospectus filed first
with the Depar tment of
Law of the State of New
York. Such filing does not
constitute approval by
the Depar tment of Law.
F-4115; F-6451allegra network llc47585 galleon DrivePlymouth, Mi 48170248.596.8600www.allegrafranchise.comwww.allegranetwork.com