Allegra Franchise

Financing Details

Alliance Franchise Brands offers limited direct financing to franchisees. Specifically, for those purchasing a MatchMaker Center, Alliance Franchise Brands allows the $15,000 Kickstart initial marketing deposit to be deferred by signing a promissory note. This note does not charge interest unless there is a default or transfer of the note, in which case interest would apply at a rate of 18% per year or the highest legal rate allowed. Beyond this specific deferral for the Kickstart marketing deposit, Alliance Franchise Brands does not provide any other direct or indirect financing, nor does it guarantee any franchisee's notes, leases, or other financial obligations.

Litigation Summary

Alliance Franchise Brands has disclosed three historical litigation matters, all of which concluded more than three years prior to the FDD issuance date of March 28, 2025. Two of these cases involved disputes with franchisees. In the first, a Signs By Tomorrow franchisee alleged breach of contract and duty of good faith against the franchisor's former affiliate, Sign & Graphics Operations LLC, related to the termination of a development fund; this case was settled in March 2018. In the second, Allegra Network LLC (the franchisor's former name) filed an arbitration demand against a former franchisee for unpaid amounts and failure to comply with post-termination obligations, while the franchisee counterclaimed with allegations of breach of contract and fraud; this dispute was settled in April 2018, with the franchisee agreeing to pay Allegra Network $100,000. The third matter involved an investigation by the Washington Attorney General, initiated in January 2018, concerning the use of no-poach provisions in franchise agreements. Alliance Franchise Brands entered into an Assurance of Discontinuance in October 2019, agreeing to cease including such provisions in future agreements and to amend existing ones. There is no currently active or recent litigation reported for Alliance Franchise Brands within the last three years.

Renewal Conditions

To renew their Allegra franchise, franchisees must provide timely notice to Alliance Franchise Brands. They are required to either maintain possession of their current Center premises or secure new, acceptable substitute premises. Regardless of the cost, Allegra franchisees must remodel or expand their Center to comply with the then-current System Standards. They must also timely sign a new franchise agreement and any other necessary documents, which may contain materially different terms and fee requirements than their previous agreement. Additionally, Allegra franchisees must achieve at least $300,000 in annual Gross Sales for two or more years, starting from the fourth full calendar year of their Center's operation. They must also sign a general release of claims (subject to state law) and, if required by Alliance Franchise Brands, transition their Center into a different brand concept.

Staffing Notes

Alliance Franchise Brands LLC requires that an Allegra, American Speedy Printing, or Insty-Prints center be managed by the franchisee or a designated Managing Owner, who must be a shareholder or owner with at least a 20% interest and serve as the chief executive officer if the franchisee is an entity. This individual must devote substantially all of their time to the full-time, on-premises supervision of the center. The Managing Owner is responsible for supervising, training, and evaluating employees to ensure competent and efficient customer service. Additionally, the franchisee has an ongoing obligation to hire and retain an outside salesperson, who cannot be the franchisee or Managing Owner. This salesperson must meet designated specifications and may attend initial training, though it is not mandatory for them to have an equity interest in the center. Employees with access to confidential information or participating in training programs must sign a Confidentiality and Non-Solicitation Agreement.