Allegra Network seeks Springfield franchisee

Allegra Network envisions two of its print shops in Springfield and 11 throughout Missouri by 2008.

Company officials say they have good reason.

Allegra Network identified Springfield as one of several Missouri cities where the number of businesses is disproportionate to the number of print shops, said Darryl Buchanan, the company’s vice president of franchise development.

The presence of manufacturing, health care and real estate in Springfield is also a factor, Buchanan said.

Allegra’s pitch is aimed at “downsized corporate executives” and corporate veterans looking for a change of pace. Company officials said about three-quarters of its franchisees have a corporate background.

“These are people who are highly qualified and well-educated, and now in a different set of circumstances, have decided they may want to go into business for themselves,” said Tina Virga, Allegra’s communications manager.

Under its conversion print center business model, Allegra matches prospective franchisees with independent printing company owners looking to sell their businesses. Advantages include an established customer base, experienced staff and immediate cash flow, Buchanan said.

Over the past decade, the company’s franchise members have purchased more than 160 independent printing businesses, contributing more than $50 million in incremental sales.

Allegra offers its franchisees an array of support programs and tools, including a valuation study to determine what the existing business is worth and training that covers software technology, marketing and customer service.

‘Way too long’

Allegra’s standard franchise agreement is 20 years, which independent print shop owner Joy Adams said is a long time if the parent company doesn’t live up to expectations.

“If you don’t get good support from the franchiser, it’s not worth it,” said Adams, who owns Digital Print, Ink in Springfield with husband Dave.

The full-service print and design business began as a Kwik Kopy franchise in 1979, but Adams said the 25-year agreement was “way too long.”

In the final years of the agreement, the Adamses were paying as much as $60,000 to their franchiser even though they were learning more about their business at trade conferences. After a year-and-a-half extension at a reduced rate, the couple formally left the company in December and formed DPI.

Andy Cobb, who owns Traders Printing commercial printing shop in downtown Springfield, said he’s never been confronted with a buyout offer from a franchiser like Allegra. He said he’s not interested, because sole proprietorship has too many benefits.

“We can cut more corners than they can with pricing and rush orders,” Cobb said. “The big guys have too many rules and regulations.”

Return on investment

Allegra franchisees initially invest between $155,600 and $429,000 when opening a conversion print center, which typically produces between $500,000 and $2.5 million in business annually, Buchanan said.

Allegra’s other franchise model assists entrepreneurs interested in opening one of the company’s digital print centers.

The concept was launched in 2003 to meet the growing demand of small- to medium-size businesses for digital printing, signage and mailing services.

The cost to start a digital print center is about $90,000, and the total investment ranges from $199,956 to $291,373, according to www.allegranetwork.com.

The shops rarely exceed 2,000 square feet and are run by no more than three employees.

The network

Nationwide, Allegra has about 16 conversion print center franchises and about 10 digital print center franchises. Another 15 Allegra franchises are in the works, Buchanan said.

The company has an ambitious goal of 420 franchises by 2010, Virga said.

Allegra Network – formerly American Speedy Printing Centers Inc. – was founded in 1976 and opened its first franchise the next year.

Today, the company links more than 600 locations. Its printing division includes six brands – Allegra Print & Imaging, American Speedy Printing, Instant Copy, Insty-Prints, Speedy Printing and Zippy Print. The company also acquired the Signs Now brand in January 2005.

Allegra Network ranked 272 on Entrepreneur magazine’s Annual Franchise 500 this year, down from a peak of No. 54 in 2003. Last year, the company ranked 153 on the magazine’s global franchiser list, down slightly from No. 90 in 2004.