Alphagraphics (printing services)

Build your future with the best in the business.

268 South State Street, Suite 300 Salt Lake City, UT 84111 www.alphagraphics.com This advertisement is not an offering. An offering can only be made by a prospectus filed first with the Department of Law of the State of New York and respective filing states. Such filing does not constitute approval by the Department of Law.

Planning For Your Future?

So Are We.

T

he technology of communications has evolved more rapidly over

Enter the gold standard of quick-

the last ten years than at any time since

print franchise stores: AlphaGraphics*.

Gutenberg revolutionized mass

As an AlphaGraphics franchise store

communication with the invention of

owner, you’ll be part of an organization

the printing press. Today, computers

recognized as the undisputed worldwide

and the Internet have completely

leader in on-demand digital printing, full

redefined how modern business

service offset printing and e-business

documents are designed, printed,

solutions. To business customers,

transmitted, and stored.

AlphaGraphics means unparalleled

Business-to-business printing services

personal service, consistent quality, and

must change profoundly with this digital

technical innovations such as AlphaLink®

revolution, or perish. Fortune 1000

WorldWide, which connects hundreds of

companies—even small and medium-

AlphaGraphics locations into a single

sized businesses — compete in a global

powerful network.

marketplace, and can no longer afford to

No wonder AlphaGraphics stores

entrust their document management

average higher reported sales revenues

to the small, independent print shop

than any other quick-print franchise.

down the street. They need quick-print

With its leading-edge document design,

service with a local presence but with

document management, and e-business

global reach, and electronic document

services, AlphaGraphics holds a well-

management capabilities.

earned reputation as number one in convenience printing, the fastest growing segment of the $115 billion printing industry. It all boils down to strong repeat business for AlphaGraphics franchise owners.

*“AlphaGraphics” and related logos are registered trademarks of AlphaGraphics, Inc.

Better Opportunities, Right From The Start.

Leading businesses across the U.S. and around the globe look to AlphaGraphics as their one-stop source for world-class designing, copying, printing, and digital document management. That means AlphaGraphics franchisees have a built-in advantage when it comes to attracting—and keeping—customers.

Think Local, Print Global With several hundred locations worldwide,

• Direct mail printing & fulfillment • CD-ROM mastering, duplicating, package printing & storage • Web site design, hosting & maintenance Further, you’ll benefit from AlphaGraphics’ leadership position in emerging segments of the printing industry, including: • Variable data printing • On-demand digital printing

AlphaGraphics has built a reputation for quality

• Internet file transfer and ordering

and customer service that independent quick-

• Global online distribution and archiving

print shops and most “chain” competitors can't

• Digital asset management

begin to match. Our secure AlphaLink network

• Distribute-then-print network

connects all stores, allowing documents to be

• Full service offset printing

transmitted reliably across international borders from one AlphaGraphics location to another, then printed locally…saving time, postage, and import duties.

As an AlphaGraphics franchisee, you’ll provide services needed by every business in your area: • Digital color printing • Digital publishing & scanning • High speed, high volume copying • High quality offset printing • Promotional business printing • Business forms printing

An Extraordinary Franchisee Relationship One source of AlphaGraphics’ growth is the remarkable nature of its relationship with franchisees. AlphaGraphics’ “franchisee-first” culture has been widely recognized. In fact, AlphaGraphics was the first franchise organization to receive ISO 9000 quality certification for franchise administration. Thanks to innovative ideas ranging from descending royalty plans to a succession planning program, hundreds of franchisees…people just like you…have found a home in AlphaGraphics.

“I began thinking about leaving the corporate world because I was tired of being a victim of circumstance.

Having been an AlphaGraphics customer got me thinking about a franchise. I asked myself two questions: Could I make money and did I have the experience? Not knowing anything about printing, I talked to a couple of owners; they said the support and training were definitely there. The most pleasant surprise has been that there were no surprises. I got what I expected—a forward-thinking business that changes with the times.”

Herb and Devra Collins, Tucson, AZ “There are two essential questions a prospective franchisee must ask: Will the franchise fee be worth it? And will paying royalties be worth it?

The answer to the first question is a resounding ‘yes.’

The AlphaGraphics operating systems make the difference. The training exceeded my expectations and allowed me to beat our year-one projections for sales, cash flow and profits. The answer to the second question depends on the franchisor’s ability to be my R&D and tech support team. AlphaGraphics helps the entire system get out in front with the latest technologies. Being part of AlphaGraphics is definitely worth it.”

Karen Brinker Greenwich, Connecticut “I was a management consultant in the consumer goods/retail industry, which gave me exposure to many different top-performing companies.

AlphaGraphics’ name came up over and over again. Our due diligence included visits to over a dozen locations and phone conversations with over 20 owners.

Every owner indicated that they would make the same decision if they had to do it all over again. The experience has been extremely rewarding.

The franchisor has lived up to our expectations in training, service, and support—very important given that our knowledge of this business prior to opening AlphaGraphics was zero!”

Mehul Patel, Stores in Dallas, TX

The Convenience Printing Market Segment is Growing.

Convenience printing is the fastest growing

Online procurement. By 2005, the Internet

segment of the $115 billion U.S. printing

will play a role in the generation of the vast

services market. The rising demand for

majority of print in the United States. Print

convenient digital printing is being fueled by

procurement that is Web-enabled is expected

several major trends, including:

to grow from 17% in 2000 to 80% in 2005.3

Overall growth. The overall U.S. print

This growing demand bodes well for those

market is projected to grow from $115 billion

positioned to provide the quality digital

to $140 billion between 2000 and 2005.1

printing businesses need. Alphagraphics

Segment growth. At the same time, the

average sales-per-shop is growing, and is

retail value of print-on-demand will grow from

nearly double the industry average.2

$21 billion to almost $48 billion.1 Increased outsourcing. Outsourcing continues as an important trend in corporate America. The document outsourcing market is expected to experience a 17% compound annual growth rate from 2000 to 2005.1 Supplier consolidation. Corporations are trying to reduce the number of suppliers with which they do business, including printers. The suppliers who remain must offer a greater range of services.1

“AlphaGraphics not only showed the greatest [sales] increase, it also set a new record...The rest of the field might want to find out what these folks are eating for breakfast.”

— Quick Print Magazine “Annual Franchise Review” April, 2002

Sources: 1 On Demand 2001 keynote address, Charles A. Pesko Jr., managing director, CAP Ventures, Inc. 2 Quick Print Magazine, “Annual Franchise Review”, April, 2002 3 Study by CAP Ventures surveying 300 print buyers and 200 print providers, 9/2000.

Unparalleled Training And Support.

T

he majority of our franchisees come to

you learn more about your clients' buying

transmit digital files for print-on-demand

the newest “tools of the trade,” long before

AlphaGraphics with no prior experience

habits, target those habits with selective

service anywhere in the world.

they’re available to other printshops.

Alphalink Direct is our proprietary

Through our technical expertise and world-

includes continuing on-site visits and

two-way link that lets your customers

wide presence, AlphaGraphics is able to offer

through every facet of the business. Starting

training by AlphaGraphics marketing

place orders and send digital documents

an expanded portfolio of products and services

with an intensive, four-week training

consultants.

securely from their business location to

well beyond that of our competitors.

in the printing industry. That’s why our

promotions, and measure responses. It also

comprehensive training program takes you

any AlphaGraphics store worldwide.

program at our World Headquarters in Salt

• Ongoing field support and consultation.

Lake City, you’ll learn how to manage your

The AIM program is complemented by

business, how to build a dynamic customer

regular, on-site strategic planning and

the first quick-print company to streamline

base, and how to handle day-by-day

coaching sessions with our expert sales

the connection between the customer’s

operational procedures. Plus you’ll receive

and marketing consultants.

desktop and the print shop. Configured to

vital real-world training in a state-of-the-art

• Innovative succession planning.

With AG PDF Express ,® AlphaGraphics is

generate Adobe PDF files that match each

working AlphaGraphics training facility.

Our Prospective Partners Program allows

print shop’s own output devices, it allows

• Extensive operational and management

employees to earn cash credits that can

customers to use AlphaGraphics print

tools. Our streamlined management

cover up to 80 percent of the

services from desktop or laptop computers

systems are well-documented, easy to

AlphaGraphics franchise fee. It’s a

anytime, anywhere.

understand, ISO compliant and designed

powerful incentive to help you attract

for efficiency and growth.

and retain quality employees.

• Targeted direct marketing program.

The AlphaGraphics Integrated Marketing

• AlphaLink franchise support network.

AlphaLink Worldwide is our proprietary

Program (AIM) is a key competitive

global extranet that connects you to

advantage that helps you develop and

every other franchisee and to our world

execute marketing programs targeted

headquarters. It allows for the free

specifically to your best prospects and

interchange of ideas among franchisees

current customers. AIM includes a

and provides access to support and

proprietary software program that helps

training programs. It is also used to

Looking To The Future?

So Are We. AlphaGraphics franchisees share another important advantage, one that's changing

Performance That’s Not Only Promised...It’s Certified.

AlphaGraphics delivers high-quality products to our customers; it’s a capability that has helped to set us apart in the past, and it’s a key to our future.

But don't take our word for it. In 1997, AlphaGraphics set out to become the first franchised system in the industry to earn ISO 9000 certification for its franchising process and for its store-level operating and performance-measuring systems. And we’re still the only one.

As new locations open with our

every day. It’s in our unmatched ability to

ISO 9000 quality systems already in place,

research, develop and plan the strategic

future customers—like yours—can be

technologies that keep us a quantum leap

confident that their projects will be

ahead of the competition.

completed on time and to their total

Our strong tradition of innovation means every AlphaGraphics location has access to

satisfaction. And these days, there’s no such thing as too many satisfied customers.

Invest in Your Future, with AlphaGraphics.

I

personally invite you to contact us to learn more about our worldwide network and its strategic position within a growing

industry. AlphaGraphics has over 30 years of hands-on experience helping franchise store owners provide excellent customer service and the latest available technologies to their business customers.

If you are enterprising, energetic, and willing to learn and apply our systems, tools and procedures, you may be the perfect candidate to own your own AlphaGraphics franchise.

We’re confident that our franchise owners are uniquely positioned to take advantage of a bright future. I hope you can be a part of it with us.

Michael Witte Chairman and CEO AlphaGraphics, Inc.

Contact us today. We’d love to give you the whole story on becoming an AlphaGraphics franchise owner.

Visit us online at www.alphagraphics.com, or call 1-800-528-4885. From outside the United States, call 801-595-7278.