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Allegra Franchise Sales, Costs & Profits (2023)

As for many printing franchise, Allegra has reduced its footprint over the years: from 260 franchises 10 years ago, the Allegra now has just over 190 franchises in the US today.

Still a leader in the printing industry, Allegra has added additional marketing services to its scope over the years to stay competitive in a market switching to digital alternatives.

So should you start a new Allegra franchise in 2023? Is this a good business?

By looking at the financials from the latest FDD, Allegra sure seems like a great business. Indeed, you would need to invest a mere $293,000 to set up a new shop, whilst the average turnover per year is $1,143,000..! Impressive, no?

In this article we’re looking at Allegra and its latest FDD to find out how much it (really) costs, and how profitable the business really is. Let’s dive in!

Key stats

Franchise fee$45,000
Royalty fee1.0-6.0%
Marketing fee2.0%
Investment (mid-point)$293,000
Average sales$1,143,000
Sales to investment ratio3.9x
Payback period4 years
Minimum net worth$250,000
Minimum liquid capital$100,000
Source: Franchise Disclosure Document 2023
Allegra franchise business plan template

Allegra Franchise Business Plan

All the stats: startup costs, profits, breakeven, etc.

5-year financial projections built with the FDD

Excellent 4.8/5 based on 70 reviews

Excellent 4.8/5 based on 70 reviews

About Allegra

Allegra Marketing Print Mail is a full-service marketing, mailing and printing company headquartered in Plymouth, Michigan. Its centers offer direct mail services, custom printing, graphic design, marketing and promotional services and more to businesses and institutions.

Allegra Marketing Print Mail was founded in 1976 and began franchising in 1977. The company has 192 franchises in the US and 52 international locations, especially in Canada.

Allegra Marketing Print Mail has positioned itself as an important player in the $178 billion North American print and marketing services industry. Today, it provides passionate and interested franchisees an opportunity to serve their communities through multiple pathways and by providing printing and marketing solutions to a wider array of sectors, such as marketing and business communication services, email marketing, printing and mailing, etc.

Allegra franchise pros and cons

The Pros:

  • In-house financing: The franchisor provides its franchisees with a variety of in-house financing options as well as third-party financing through partnerships with third-party lenders. Franchisees get financing for startup costs, franchisee fees, equipment and inventory and ongoing costs.
  • Exclusive territory protection: The franchisor allows the franchisees to operate their franchise in an exclusive territory. It does not authorize any other Allegra Marketing Print Mail franchises or operate related brands in the protected location.
  • Franchise training and support: The franchisees benefit from extensive classroom and online training. They are trained about the business concept, growth strategies, products and services, hiring and training qualified staff and compliance. It also offers them continuous support to run their centers smoothly.
  • Marketing and publicity: Allegra provides its franchisees with marketing and advertising channels to help them boost sales and improve profitability. These include regional advertising, ad templates, national media, email marketing, loyalty program apps and local store promotions.
  • Flexible franchise concepts: The franchisor offers its franchisees various franchise options to choose from, such as Allegra Marketing*Print*Mail Centers, the MatchMaker program and more, allowing franchisees to establish their centers quickly and sustain their legacy while expanding their customer bases.
  • Site selection: The franchisor offers its franchisees site selection assistance to identify a viable business location. It also helps them with the designs, lease negotiations and construction of their centers.

The Cons:

  • Not a passive investment opportunity: The franchise does not allow for absentee ownership. Franchisees are required to actively take part in the daily operations and management of their centers.
  • Not a part-time business: The franchise cannot be operated on a part-time basis. They must be open full-time, at least following the standard B2B working hours of 9am–5.30pm
  • Not a home-based opportunity. The franchise cannot be operated from home or a vehicle. Franchisees must establish a fixed office facility within or near their franchise premises.

Allegra franchise costs

You would have to invest on average $293,000 if you chose to open a Allegra franchised shop under the MatchMaker programme; and $181,000 under the Advantage programme instead.

The investment covers all the start-up costs you may need to open an Allegra franchised shop. You must pay the franchisor. In addition to the $10,000–$45,000 initial franchise fee, the investment also covers:

  • Formulation costs: utility deposits, leasehold improvements, exterior signage, professional fees, training expenses, etc.
  • Equipment: software, equipment, etc.
  • Initial Marketing: Marketing and Brand Identification, Kickstart Initial Marketing Deposit, etc.
  • Operating costs: rent deposit, insurance, professional fee, additional funds for 12 months, etc.

Here’s the full breakdown of costs per shop format:

Startup costs (Matchmaker Centers)

Type of ExpenditureAmount
Initial franchise fee$45,000
Formulation costs$7,706 – $55,640
Equipment $6,150 – $133,128
Initial Marketing $15,000 – $28,883
Operating costs$55,595 – $206,100
Total$129,451 – $456,751
Source: Franchise Disclosure Document 2023

Startup costs (Advantage Centers)

Type of ExpenditureAmount
Initial franchise fee$10,000
Formulation costs$4,200 – $42,115
Equipment $6,150 – $133,128
Initial Marketing $7,500 – $25,727
Operating costs$2,900 – $121,100
Total$30,750 – $332,070
Source: Franchise Disclosure Document 2023
Allegra franchise business plan template

Allegra Franchise Business Plan

All the stats: startup costs, profits, breakeven, etc.

5-year financial projections built with the FDD

Excellent 4.8/5 based on 70 reviews

Excellent 4.8/5 based on 70 reviews

Allegra franchise fees

The initial franchise fee for a Allegra franchise is $45,000

In addition to the initial franchise fee, you must pay to the franchisor a royalty fee of 1.0-6.0% of revenues, as well as a variable marketing fee of 2.0% of revenues.

Allegra franchise revenue

On average, an Allegra franchise makes $1,143,000 in sales per year.

This number is the average sales per franchise center for 149 of the 188 franchised centers that operated in all of 2022. This is a +16.6% year-on-year increase vs. 2021 ($980,000, 148 units).

Allegra franchise profits

On average, Allegra franchises make $186,000 in profits per year (16% EBITDA margin).

We calculated this number using the information available in the Franchise Disclosure Document 2023. Luckily, Allegra Marketing Print Mail provides detailed information on the cost structure of its franchised-owned centres, which we have summarized below.

Profit and lossAmount% of sales
Gross Profit$762,20467%
Operating Expense$(290,598)25%
Capital Asset Cost*$(73,249)6%
* operating leases, depreciation & amortization, interest expense
** earnings before corporate tax
Source: Franchise Disclosure Document 2023

Important note: surprisingly, the FDD includes depreciation and amortization above EBITDA (which is a non-cash expense and therefore below EBITDA). Therefore, we have adjusted the profit and loss above to reflect that: instead of the 10% EBITDA margin as per the FDD we estimate EBITDA is in fact ~16% of sales.

Is Allegra a good franchise investment?

We found Allegra franchises have an excellent 4 years payback period on average.

In other words, you would reimburse your investment within 4 years if you were to invest and start a new Allegra franchised business. This assumes a 7% net profit margin, in line with the 10% EBT as calculated earlier.

To be clear: a 4 years payback is excellent and as such Allegra is a great investment (at least from a financial standpoint). It’s also in line with printing shop franchises that have a 3-5 years payback on average, as per our own benchmarks.

Allegra franchise business plan template

Allegra Franchise Business Plan

All the stats: startup costs, profits, breakeven, etc.

5-year financial projections built with the FDD

Excellent 4.8/5 based on 70 reviews

Excellent 4.8/5 based on 70 reviews


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