Risk Score
Pending analysis
Investment Range
$7,030 - $27,695
Min Cash Required
$6,000
Total US Locations
526
Business Summary
Proforma Franchises specialize in the sale and distribution of printed business products and services. This includes items like business forms, commercial printing, specialty advertising, packaging, apparel, point-of-purchase displays, and multi-media services. Proforma business owners operate primarily in a business-to-business setting, utilizing the Proforma System which includes business management software, e-commerce solutions, accounting, order processing, and marketing support. A key part of the Proforma System is that Proforma handles customer invoicing and vendor payments on behalf of the franchisees.
Corporate History
Proforma's history began in 1978 when its predecessor, Proforma, Inc., started operating a business similar to the current franchises. Proforma, Inc. was incorporated in 1981 and began offering franchises in 1985. In 1993, the business transitioned into an Ohio joint venture partnership, which then reorganized into PFG Ventures, L.P. in 1999. From 2010 to 2015, an affiliate, GSL Distribution, Inc., operated a company-owned Proforma franchise.
Financial Overview
Investment Range
$7,030 - $27,695
Minimum Cash Required
$6,000
Royalty %
8%
Marketing %
1%
Equipment Costs (Low)
$700
Equipment Costs (High)
$7,000
Working Capital
$9,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
PFG Ventures maintains strong financial health. Its audited financial statements show that it consistently meets its specified financial ratios and net worth levels, as required by its credit agreements with U.S. Bank. There are no disclosed concerns about Proforma's ability to continue as a going concern. The company has positive net income of $5,470,900 in 2023 and $7,795,100 in 2022, and cash and cash equivalents of $9,427,100 in 2023.
Financing Details
Proforma does not offer any direct or indirect financing for the initial franchise fee. It also does not refer franchisees to lenders or guarantee any loans. However, Proforma assists franchisees by invoicing their customers and paying suppliers from the collected receivables. At its discretion, Proforma may advance funds to pay suppliers before receiving customer payments. These advances are facilitated by Proforma's own line of credit with U.S. Bank, which requires franchisees to pledge their receivables and other assets as collateral.
Performance Metrics
Total US Locations
526
Franchised Units
526
Corporate Units
0
Franchising Since
1985
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Proforma has no litigation history to report. The franchise disclosure document states that no litigation is required to be disclosed in Item 3, covering both pending actions and litigation against franchisees commenced in the past fiscal year.
Bankruptcy History
Proforma has no bankruptcy history to report. The franchise disclosure document states that no bankruptcy information is required to be disclosed in Item 4.
Agreement Terms
Renewal Conditions
Proforma's franchise agreements do not have a set expiration date and therefore do not have renewal conditions. The agreement term is indefinite and continues until either Proforma or the franchisee terminates it as outlined in the agreement.
Training & Support Program
Franchisor Assistance
Proforma offers its franchisees comprehensive support both before and after opening. For pre-opening, Proforma provides customized online or on-site training on business operations, electronic access to its Confidential Operations Manual, a proprietary business management software license, and access to optional selling system tools. Ongoing support includes marketing and sales techniques, standard sales service support via telephone consultations for strategies and vendor information, and assistance with customer invoicing and supplier payments. Franchisees also receive monthly reports on gross billings, receipts, and outstanding customer balances, along with cash flow analysis and marketing materials. Additionally, Proforma offers various optional services like lead generation programs, appointment setting, sales presentation tools, staff recruitment, and a credit insurance program, among others.
Initial Training Hours
80
Training Location
Franchisor headquarters in Cleveland, OH or Tampa, FL, at the franchisee's location, or remotely online
Ongoing Support
Proforma offers its franchisees continuous support once their business is operational. This includes providing marketing and sales techniques, standard sales service support via telephone consultations for strategies and vendor information, and assistance with customer invoicing and supplier payments. Franchisees also receive monthly reports on gross billings, receipts, and outstanding customer balances, along with cash flow analysis and marketing materials. Optional services such as lead generation programs, appointment setting, and personal business success coaching are also available.
Franchise Requirements
Ideal Candidate Profile
Proforma seeks franchisees who have significant experience in the printed business products and services industry. This includes individuals who have either sold at least $500,000 of industry products in the past year, or worked full-time as a sales representative or direct sales support for at least three years within the previous five years. Proforma also welcomes existing business owners in the industry who have a controlling interest in a business that has operated for at least 12 months and achieved sales of at least $500,000. Additionally, individuals who have worked for an experienced Proforma franchisee and generated $1,000,000 in annual Gross Volume of Business are considered ideal candidates.
Industry Experience Required
Yes
Management Experience Required
No
Sales Experience Required
Yes
Technical Skills Required
No
Min Years Experience
3
Operational Details
Location Type
Hybrid
Owner Participation
Hands-On
Territory Type
Non-Exclusive
Staff Count
1
Territory Size Requirements
Proforma franchisees do not receive an exclusive territory, nor a specific location, radius, population, or account size. Proforma franchisees may operate their businesses from their homes or from commercial establishments and can relocate at any time or from any number of locations without needing franchisor approval, although they must inform the franchisor of all locations and relocations. There are no options, rights of first refusal, or similar rights to acquire additional Proforma franchises. The Proforma franchise is a non-exclusive license. While Proforma franchisees can call on any potential customers they wish, the franchisor may implement an account resolution and market optimization policy that restricts where, to whom, or by what media a franchisee may sell products and/or services. This policy may include granting exclusive rights to other franchisees for customers they have developed and restricting franchisees from soliciting certain prospective customers. Proforma may also restrict teleprospecting, Internet, and direct mail marketing activities to specific Postal Zip Codes and may limit the use of the Internet to franchisor-owned, prescribed, or approved sites. Proforma reserves the right to compete with franchisees through company-owned outlets or other distribution channels, with or without using its principal trademarks, and without compensating the franchisee. Proforma's current policy is to establish at least one Proforma franchise owner per every 5,000 businesses in any market to achieve at least a 10% share of that market's revenue from the sale of products and services, though exceptions to this policy may be made.
Staffing Notes
Proforma franchisees typically start as the sole employee, operating and managing the business themselves. Additional staff can be hired as the business grows, but any person hired to operate or manage the franchise requires Proforma's written consent and must complete specified training. All employees operating the franchise must sign a confidentiality agreement with an indefinite term.