Updated September 15, 2021.
Detailed Estimates of AlphaGraphics Franchise Costs Based on Item 7 (Estimated Initial Investment) of AlphaGraphics’ 2021 Franchise Disclosure Document
For a New Business Center
1. Initial Franchise Fee: $48,950
- If you sign a Franchise Award Letter and subsequently sign a Franchise Agreement with AlphaGraphics, then any amounts paid under the Franchise Award Letter will be applied toward your initial fees.
2. Opening/Reopening Performance Package: $10,000
3. Center Development Package: $123,000 to $135,000
- If you are a New Business Center franchisee, you must purchase from AlphaGraphics either its “base” Center Development Package for $123,000 or its “premium” Center Development Package for $135,000.
- The Center Development Package includes the initial cost of your computer system and certain other equipment, signage, and supplies listed in Schedule H to the Franchise Agreement.
4. MIS System (PrintSmith Vision): $15,000
5. CRM System (Print Speak): $250
6. agOnline System: $1,500
7. Real Estate Deposits and Leasehold Improvements and Construction: $10,000 to $40,000
- The typical start-up Franchised Business Center site is approximately 1,800 to 2,500 square feet.
- The disclosed low-high range includes deposits and costs for Franchised Business Centers opened from 2018 through 2020 for the business centers in AlphaGraphics’ recommended size range, but not the purchase of land and building (because AlphaGraphics does not require you to purchase your premises).
- This range includes items related to leasehold improvements such as architectural and permitting fees, deposits, and other typical build-out costs. These costs can range significantly depending upon local markets and availability of suitable sites.
- Monthly rental rates could range between $1,800 to $5,000 based upon local market availability, size, condition, location of the property, and negotiations with the landlord.
8. Digital Printing Equipment: $0 to $3,600
- You must lease or purchase digital printing equipment that meets AlphaGraphics’ specifications. The digital printing equipment consists of one digital color printer with color print controller. AlphaGraphics recommends that you lease this equipment. This equipment is leased at a monthly cost of between approximately $950 and $1,200. In many cases, there are no lease payments due prior to opening your Center.
- The high end of the estimate is for three months of lease payments at the high end of the estimated monthly cost.
- You must purchase service contracts for all of the digital printing equipment. In addition, there is a per impression service charge.
- Should you choose to purchase the digital printing equipment instead of leasing, the cost ranges from approximately $38,128 to $49,748. Some Franchised Business Center franchisees elect to purchase additional digital printing equipment later.
- The costs indicated for the equipment package and the digital printing equipment may increase or decrease based on a variety of factors beyond AlphaGraphics’ control. These include, but are not limited to, pricing changes by the vendor, substitution of an alternative piece of equipment by the vendor, availability of the equipment from the vendor, and continued operation of the vendor.
- At times, AlphaGraphics may also see fit to change the Operations Manual and/or system Standards, which may change the required digital printing equipment. Such changes may impact the cost of digital printing equipment.
9. Finance Costs: $0 to $17,000
- You could incur these costs if you finance your initial investment.
10. Miscellaneous Opening Costs: $5,000 to $18,000
- This item covers miscellaneous opening costs and expenses, including utility deposits, licenses, attorneys’ and accountants’ fees, travel and living expenses that you will incur in training, and salaries prior to opening.
11. Additional Funds – 12 Months: $50,000 to $74,000
- This estimate includes your Royalties, AIM fees, and Managed Services Program fees. This estimate also includes insurance, supplies, and payroll costs, but not any draw or salary for you or your living expenses.
- If you hire a full-time employee to satisfy the 40 hours per week outside sales requirement, you might need additional funds.
12. Total (excluding real estate purchase or lease costs): $263,700 to $363,300
- To compile these estimates, AlphaGraphics relied on its franchisees’ experience in operating the same type of business, its experience in franchising the same type of business, and its franchisees’ performance.