Updated October 22, 2019.
Detailed Estimates of AlphaGraphics Franchise Costs Based on Item 7 (Estimated Initial Investment) of AlphaGraphics’ 2019 Franchise Disclosure Document
For a New Business Center
1. Initial Franchise Fee: $48,000
- 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: $7,500
3. MIS System (PrintSmith Vision): $15,000
4. CRM System (Print Speak): $250 to $750
5. agOnline System: $1,500
6. Real Estate Deposits and Leasehold Improvements and Construction: $10,000 to $40,000
- The typical start-up Franchised Business Center site is approximately 2,000 to 3,000 square feet.
- The disclosed low-high range includes deposits and costs for Franchised Business Centers opened from 2015 through 2017 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.
7. Equipment, Furniture, Fixtures, Signs, Inventory, Remodeling, and Decorating Costs: $99,400 to $158,818
- The amount listed is an estimate based on currently known costs and equipment specifications, not including sales tax, and includes the cost of your new Franchised Business Center equipment package.
- The equipment package is typically financed through a third party and covers the basic decor and millwork package, computer equipment, software (excluding an MIS System License Fee of $15,000 and agOnline System Fee of $1,500), miscellaneous supplies, printing and bindery equipment, inventory, and interior and exterior signs.
- You are required to purchase or lease a durable large-format printer, wide-format laminator, and vinyl cutter/plotter. The typical cost for this sign and graphic equipment can range from approximately $25,000 to $35,000.
- The equipment purchased must meet AlphaGraphics’ specifications. There are variables within the décor and signage packages that are determined solely by the size, location, and layout of the Franchised Business Center that may impact the package costs.
- You must also lease digital printing equipment that meets AlphaGraphics’ specifications. The digital printing equipment consists of one digital color printer with color print controller. This equipment is leased at a monthly cost of between approximately $2,400 and $3,500.
- You must purchase service contracts for all of the digital printing equipment. The typical monthly service base on this equipment is approximately $300. 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 $35,000 to $55,000. Some Franchised Business Center franchisees elect to purchase additional 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 package. Such changes may impact the cost of the equipment package.
8. Finance Costs: $10,000 to $17,000
- You could incur these costs if you finance your initial investment.
9. 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.
10. Additional Funds – 12 Months: $18,000 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.
11. Total (excluding real estate purchase or lease costs): $214,650 to $380,568
- 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.