Franchise Opportunity

Transcription

1 Franchise Opportunity in 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

2 Welcome to allegra network Of the more than 3,000 global franchisors, Allegra Network ranks within the world s top 200 franchisors according to Franchise Times magazine. Among business-tobusiness (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 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 2010 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.

3 A Multi-Billion Dollar Market Opportunity marketing services 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

4 The Allegra Marketing Print Mail Opportunity at a Glance 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. 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 marketing Web site design & development HIGH-IMPACT COMMUNICATION TOOLS advertisements (print, broadcast, online) Brochures and pamphlets Business forms Business cards & stationery Direct mail campaigns 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 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 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.

5 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.

6 Four Reasons to Investigate Further 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 participating in Allegra Network s 2009 Operating Ratio Study. 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 potential 1 of an Allegra Marketing Print Mail franchise, consider these important points: a business with multi-million dollar sales potential from a single location. 34.1% or 61 businesses exceed $1 million in sales**. average annual sales for Allegra centers in 2010 was $1,058,234**. Median profitability 2 for high profit centers is 18.49% 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. *See item 2 of Franchise Disclosure Document ** For all Allegra branded centers

7 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 longterm 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. 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. 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.

8 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 headquartersbased 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. PROFIT MASTERY TM 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. 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.

9 Financial Requirements The initial investment for a new Allegra Marketing Print Mail center ranges from $172,348-$455,784* and $259,314-$520,814* 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: 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 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. 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). * 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 Franchise Disclosure document in item 7.

10 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

11 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.

12 Allegra Network LLC Galleon Drive Plymouth, MI This advertisement is not an offering. An offering can only be made by a prospectus filed first with the Department of Law of the State of New York. Such filing does not constitute approval by the Department of Law. F-4115