Highlights of Allegra Centers’ Item 19 Financial Performance Representations (2013 FDD)

• As a franchise member, you will market a full range of printing and marketing communication services to businesses and the general public.

Explanatory Notes for Part A – System-wide Sales

• The following is a comparison of system-wide sales in calendar years 2011 and 2012.

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  For purposes of calculating system-wide sales, Allegra, American Speedy Printing, and Signs Now centers report sales based on receipts and Insty-Prints centers report sales based on revenue from sales.

• If a center fails to report sales numbers, the franchisor estimates the sales number for the purpose of calculating system-wide numbers. The estimated sales number equals 110% of the average of the 3 monthly sales numbers last reported by the center.

• As of January 2010, the franchisor required all Allegra Printing & Imaging Centers to operate under the Allegra name.

Explanatory Notes for Part B – Allegra Centers’ Sales for 2012

• The following information includes 2012 annual sales data for the 193 Allegra Centers located in the United States and Canada that were in operation for at least 3 full calendar years as of December 31, 2012.

• Sales refers to Total Monthly Receipts from sales conducted at, from, or through the Center.

• If an Allegra Center fails to report sales numbers, the franchisor estimates this number for the purpose of calculating system-wide numbers. The estimated sales number equals the Total Monthly Receipts for the same period or, if not available, 110% of the average of the 3 monthly Total Monthly Receipts numbers last reported by the center.

• These figures do not include sales of other brands.

• This includes one corporate-owned Allegra Center but does not include the 210 Allegra Centers in existence as of December 31, 2012 that have not been open 3 full calendar years.

Explanatory Notes for Part C – Post-Resale Sales Performance for Centers Sold Between January 1, 2004 to December 31, 2012

• This data includes sales of Centers by existing franchisees to new franchisees that closed after January 1, 2004 and prior to December 31, 2011.

• As of December 31, 2012, 44 Centers had been operated by new franchisees for 1 year or more.

• As of December 31, 2012, 42 Centers had been operated by new franchisees for 2 years or more.

• As of December 31, 2012, 40 Centers had been operated by new franchisees for 3 years or more.

•  As of December 31, 2012, 34 Centers had been operated by new franchisees for 4 years or more.

• For purposes of this calculation, “sales” were determined based on the receipts of each Allegra and American Speedy Printing center, and based on revenue from sales of each Insty-Prints center.

• To obtain the sales fluctuation for each Center, the franchisor compared the sales for the first full calendar year after the resale to the sales reported on the last financial statement received from the franchisee (which was annualized if such statement covered a partial fiscal year) before the resale. For example, if the resale closed at the end of April and the last financial statement received was for the first quarter of the fiscal year, the first quarter numbers were annualized for purposes of this comparison.

• These averages also take into consideration Centers that have an increase as well as a decrease in annual sales post-resale.

• Sales of 14 Centers (32%) met or exceeded the 7.94% increase. Sales of 30 Centers (68%) had sales fluctuation lower than 7.94%.

• Sales of 14 Centers (33%) met or exceeded the 11.09% increase. Sales of 28 Centers (67%) had sales fluctuation lower than 11.09%.

• Sales of 13 Centers (33%) met or exceeded the 21.11% increase. Sales of 27 Centers (67%) had sales fluctuation lower than 21.11%.

• Sales of 11 Centers (32%) met or exceeded the 32.36% increase. Sales of 23 Centers (68%) had sales fluctuation lower than 32.36%.

Part A – System-wide Sales

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