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