AlphaGraphics Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$53,450 - $391,189
Franchise Fee
$14,925
Total US Locations
227
Business Summary
AlphaGraphics operates business centers that offer custom print and marketing solutions to local businesses. These centers provide a strategic blend of multi-channel communication services including graphic design, offset and digital printing, bindery, mailing and fulfillment, large format graphics, traditional signage, vehicle wraps, promotional products, packaging, and digital marketing services. AlphaGraphics aims to serve businesses with comprehensive visual communication needs.
Corporate History
AlphaGraphics' predecessor, AlphaGraphics, Inc. of Tucson (AGIT), was founded in Arizona in December 1970 and began operating AlphaGraphics Printshops. AGIT started offering franchises in November 1979. In July 1980, AGIT changed its name to AlphaGraphics, Inc. The current franchisor, AlphaGraphics, Inc., was incorporated in Delaware in December 1986 and merged with AGIT that same month. AlphaGraphics Franchising, Inc., a subsidiary, offered franchises from 1980 to January 1992 but didn't operate any units. The current AlphaGraphics, Inc. began offering franchises in January 1992 and is the sole entity doing so in the U.S. AlphaGraphics also operated corporate-owned businesses from December 1986 until 2001, but currently does not operate any, though it reserves the right to do so in the future. The company is now a wholly owned subsidiary of U.S. Business Holdings, Inc., which is, in turn, a subsidiary of MBE Worldwide S.p.A. (Fortidia), an Italian company.
Financial Overview
Investment Range
$53,450 - $391,189
Franchise Fee (Low)
$14,925
Franchise Fee (High)
$49,750
Royalty %
7%
Marketing %
2.5%
Equipment Costs (Low)
$220,929
Equipment Costs (High)
$258,309
Working Capital
$62,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
AlphaGraphics' financial condition has been identified as a special risk that calls into question its ability to provide services and support to its franchisees. The company has negative working capital, meaning its short-term assets are less than its short-term liabilities. In 2024, AlphaGraphics had approximately -$3.53 million in working capital (Current Assets of $4,352,550 vs. Current Liabilities of $7,884,340), and in 2023, it was about -$3.63 million (Current Assets of $4,050,620 vs. Current Liabilities of $7,683,710). AlphaGraphics also shows a total stockholder's deficit of approximately -$292,706 in 2024 and -$333,385 in 2023. Despite these figures, the independent auditors have provided an unqualified opinion, meaning they believe the financial statements present AlphaGraphics' financial position fairly in all material respects.
Financing Details
AlphaGraphics does not offer any direct or indirect financing to its franchisees, nor does it guarantee any notes, leases, or other financial obligations. Franchisees are expected to secure their own funding, typically through third-party sources or by self-funding. AlphaGraphics can assist prospective franchisees by reviewing their personal financial statements and suggesting potential funding pathways and sources. The company may also offer blank templates for developing a business plan, budget, and cash flow projections, which can be useful when seeking loans. AlphaGraphics is listed on the SBA Franchise Registry, which may help speed up the SBA loan processing for its franchisees. However, AlphaGraphics explicitly states it has no written arrangements with, and receives no benefits from, any financial institutions or third-party lenders, and does not coordinate financing for franchisees.
Performance Metrics
Total US Locations
227
Franchised Units
227
Corporate Units
0
Avg Square Footage
1,650
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Summary
AlphaGraphics has one pending litigation case. In October 2024, AlphaGraphics sued former franchisees, Wendy Fletcher Race and Lloyd Wellington Race, in Colorado federal court. AlphaGraphics alleges that the former franchisees purchased and operated a competing business near another AlphaGraphics center, using AlphaGraphics' customer data and diverting customers. AlphaGraphics had previously terminated their franchise agreement due to breaches, including non-compliance with the post-term non-compete covenant. A stipulated injunction was entered in November 2024, enjoining the defendants from involvement with competing businesses within a 5-mile radius for two years and requiring the return of confidential data. The remaining monetary claims have been moved to arbitration. In arbitration, the former franchisees asserted counterclaims, alleging AlphaGraphics breached the Franchise Agreement and the implied covenant of good faith and fair dealing by terminating their agreement based on an uncured violation of the in-term non-compete clause. AlphaGraphics responded to the counterclaims in March 2025. No other litigation is required to be disclosed.
Bankruptcy History
AlphaGraphics has no bankruptcy history to disclose.
Agreement Terms
Training & Support Program
Franchise Requirements
Ideal Candidate Profile
AlphaGraphics seeks individuals for its franchise network. For those interested in the Conversion Pathway, AlphaGraphics requires at least five years of experience in the printing or graphics industry, coupled with owning an existing business for at least one year that has achieved a minimum of $300,000 in annual gross sales in the calendar year preceding conversion. All franchisees, or their approved Managing Owners, must commit to full-time involvement, actively managing the day-to-day operations or dedicating a minimum of 40 hours per week to outside sales calls for the business. This role requires significant management responsibility and prohibits engagement in other businesses that could conflict with their AlphaGraphics obligations.
Industry Experience Required
Yes
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Min Years Experience
5
Operational Details
Location Type
Commercial
Owner Participation
Full-Time
Territory Type
limited
Territory Size Requirements
AlphaGraphics defines its Protected Area for a single Franchised Business Center to contain approximately 4,000 total businesses, which are identified using a demographic mapping software service. This software analyzes factors like the number of businesses, employers, employees, and major industry groups within an area. For AlphaGraphics Area Development Agreements, Development Areas can be a portion of a city, an unincorporated area, or a single or multi-county or single-state area. These areas are delineated by geographic descriptions, maps, streets, highways, political jurisdiction boundaries, a specific radius, or a population range.
Staffing Notes
AlphaGraphics requires its business centers to be under the direct supervision of the franchisee or an approved Managing Owner who holds a controlling interest and completes the initial training program. The Managing Owner must work full-time. Alternatively, a Certified Manager (a non-owner who completed training) may manage the AlphaGraphics Business Center with written approval. The Managing Owner (or Certified Manager) must either actively manage daily operations while employing a salesperson for at least 40 hours per week for outside sales, or the Managing Owner must spend at least 40 hours per week on outside sales calls and have an approved production manager actively manage operations. Certain staff members, including Design & Production Specialists, Account Representatives (inside sales), and Account Executives (outside sales), are required to complete specific portions of the Initial Owner Training at the AlphaGraphics headquarters. The Operations Manual and System Standards may also detail qualifications, training, dress, and appearance standards for AlphaGraphics Business Center employees. Franchisees are solely responsible for all employment and personnel matters.