Alphagraphics Franchise Cost, Revenue & Review 2026
- Investment
- $298K – $384K
- Disclosed sales
- $1.5M
- gross sales, not profit
- SBA charge-off
- 28.9%
- on 346 loans
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
FranchiseVerdict summary · 2026
A Alphagraphics franchise requires a total initial investment of $298K – $384K, including a $50K franchise fee and an ongoing 7.0% royalty[2]. Per the 2026 FDD, average unit revenue was $1.5M[2]. SBA 7(a) loans show a 28.9% charge-off rate across 346 loans[1]. FranchiseVerdict grade: C (Average), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: low - issued within the last 12 months
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✓ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored7 of 8 headline figures on this page cite a page of the filing; the rest are marked “Not cited” beside the figure.
Overview
- Investment
- $298K – $384K
- 60th pct Business Serv…
- Avg gross sales
- $1.5M
- 15th pct Business Serv…
- Royalty
- 7.0%
- 21st pct Business Serv…
- Units
- 229
- 59th pct Business Serv…
- SBA charge-off
- 28.9%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Business Services · color = vs category peers
Green = favorable by >10% vs Business Services median · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $298K – $384K including a $50K franchise fee, 7.0% ongoing royalty.
- RETURNSAverage unit revenue of $1.5M/year (median $1.1M).
- RISKVerdict C (Average), verdict score 40/100 (higher is better). SBA loan charge-off rate of 28.9% across 346 loans (well above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- GROWTHPositive: net +2 franchised outlets in the latest year (6 opened, 4 closed); 20 signed but not yet open (Item 20).
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- AlphaGraphics, Inc.
- Parent company
- U.S. Business Holdings, Inc.
- FDD Item 1, page 8 of the 2026 FDD
- Ultimate parent
- WorldFly S.p.A.
- FDD Item 1, page 8 of the 2026 FDD
- Predecessor
- AlphaGraphics, Inc. of Tucson (AGIT)
- Prior franchisor entity
- CEO title
- Chief Executive Officer
- Paolo Fiorelli
- Incorporated in
- Delaware
- HQ
- 143 Union Boulevard, Suite 650, Lakewood, Colorado 80228
- Franchisor revenue
- $24.6M
- vs $23.8M prior year
Overview
About
Providers of customized print and marketing communication products and services to businesses, including multi-channel marketing campaigns, brand identity, graphic design, offset and digital printing, bindery, mailing and fulfillment, direct mail, large format graphics, signage, vehicle wraps, promotional products, packaging, and digital marketing
- CEO
- Paolo Fiorelli
- Headquarters
- Colorado
- Founded
- 1986
- FDD year
- 2026
Can you afford it, and what does the money buy?
Entry cost runs 156% above the typical business services franchise.
Source: FDD 2026 · Items 5–7
FDD Item 7 · 2026 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Initial franchise fee | $50K | $50K |
| Working capital (3–6 mo) | $50K | $74K |
| Equipment, build-out, other | $199K | $260K |
| Total initial investment | $298K | $384K |
Source: Alphagraphics 2026 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $298K – $384K
- Middle of category vs category
- Liquid capital req'd
- $50K – $74K
- Middle of category vs category
- Franchise fee
- $50K
- Top 40% of category vs category
- Royalty
- 7.0%
- Tiered by sales volume · typical 6–8%
- Ad fund
- 2.5%
- typical 3–5%
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 7.0% of gross sales |
| Marketing / ad fund | 2.5% of gross sales |
| Technology fee | $15K |
| Transfer fee | $50K |
What do units actually make?
Average unit sales run 122% above the business services norm.
Source: FDD 2026 · Item 19
Single-unit · not modelled
Returns at a glance
An FDD discloses gross sales, not profit, and the operating costs that turn one into the other are in no filing. We publish no modelled return for Alphagraphics until someone supplies them — yours, in the models below.
—
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
Total invested capital · disclosed
$403K
Item 7 initial investment plus working capital, as filed — the one figure here that needs no assumption.
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit, read against the 30–60% reference band · Yale SOM, Post-MBA Path Exhibit 2 (2023). Below that band a passive index fund likely outperforms; above it the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses, and it is the top line only — gross sales are not profit. No FDD discloses the operating costs that turn one into the other, so those fields start empty and nothing is modelled until you supply them from your own lease quote, labor market and build-out budget.
Returns model · single-unit ROIC
What would one Alphagraphics unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
A 25-unit return is built on a per-unit EBITDA. Fill in the operating costs in Model A above and this model runs on that figure, or take the whole scenario to the full ROI workbench, where the portfolio and LBO models accept your own per-unit economics directly.
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2026 FDD
Financial Performance
- Avg gross sales
- $1.5M
- Per unit, per year
- Median gross sales
- $1.1M
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- historical
- Sample size
- 215 outlets
- vs category median 37 · large
- Range (low → high)
- $140K→$9.5MCited, not corroborated — printed on page 80 of the 2026 FDD. Nothing else in our record independently restates or re-derives it.
- Cohort dispersion (min → max)
- Quartile band
- $442K→$2.9M
- Bottom 25% → top 25%
- Reporting year
- 2025
- Fiscal year the figures cover
- Source filing
- FDD 2026
- Disclosed in the 2026 filing, covering 2025
Compared against 296 Business Services brands
Revenue is 4.5x the investment midpoint. At typical franchise margins, this suggests a payback under 3 years.
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
Average unit generates $1.5M/year in gross sales. Median is $1.1M — top performers pull the average up, so a typical unit earns less. Revenue-to-investment ratio: 4.5x.
Fee burden
7.0% royalty + 2.5% ad fund.
Operator retention
System contracting at -3.4% CAGR over 3 years. Investigate whether closures are franchisor-driven consolidation or franchisee exits.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Business Services medians
How Alphagraphics Compares
Category median of published Business Services brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2026 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 229
- Opened
- 6
- Last reporting year
- Closed
- 4
- Terminated
- 4
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 1.7%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (3-yr)
- +0.9%
- Net unit change over 3 years
- 3-yr CAGR
- -3.4%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 4
- Not renewed
- 0
- Transferred
- 8
- Reacquired
- 0
- Franchisor bought back
- Signed, not yet open
- 20
- 0.09 per open outlet · Item 20 Table 5
- Projected new
- 14
- Franchisor's next-year forecast
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 346
- Loan volume
- $127.4M
- Median loan
- $350K
- 50th percentile
- Charge-off rate
- 28.9%
- on 346 loans · rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 71.1%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 38
- Defaults
- 77
- Typical loan rate
- 6.8%
- avg rate to borrowers
- vs industry
- N/A
- NAICS 3231
- Jobs supported
- 923
- 1.8 per loan
- Lender concentration
- 40%
- top lender's share
Borrower mix: 0% went to startups / new businesses, 100% to established operators
Vintage analysis
Alphagraphics charge-off rate by loan vintage
Top lenders financing Alphagraphics franchisees
Showing 3 of 38 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
A 28.9% charge-off rate means roughly 1 in 3 franchisees failed to repay their SBA loan. Investigate what changed.
What could kill this investment?
SBA loans charge off at 28.9% — 80% above the 16.0% national norm, i.e. higher lender-observed risk.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Litigation (Item 3)
Subject: the franchisor is a named party (plaintiff).
One pending action: AlphaGraphics sued former Georgia franchisees for breach of Franchise Agreement, misappropriation of trade secrets, and violation of post-term non-compete after they began operating a competing business using AlphaGraphics customer data; court entered a stipulated injunction and compelled remaining claims to arbitration (hearing scheduled Aug 2026); defendants asserted counterclaims for breach of implied covenant of good faith and fair dealing.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
What are you signing up for?
Ongoing fees run about 9.5% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2026 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | Protected territory |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory sizeℹ | Approximately 6,000 total businesses in Protected Area |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 5 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Mandatory arbitration | Yes |
| Arbitration location | City where franchisor's headquarters is located (Lakewood, Colorado) |
| Jury trial waiver | No |
| Governing law | Colorado |
| Litigation count | 1 |
View Item 3 litigation summary
One pending action: AlphaGraphics sued former Georgia franchisees for breach of Franchise Agreement, misappropriation of trade secrets, and violation of post-term non-compete after they began operating a competing business using AlphaGraphics customer data; court entered a stipulated injunction and compelled remaining claims to arbitration (hearing scheduled Aug 2026); defendants asserted counterclaims for breach of implied covenant of good faith and fair dealing.
Items 10, 11
Training & Operations
- Classroom training
- 66 hrs
- On-the-job training
- 5 hrs
- Training location
- Training facility at franchisor's headquarters; online self-directed e-learning offsite
- Ongoing training
- Required
- Time to open
- 6 mo
- From signing to launch
- Site selection
- franchisor approves franchisee-proposed site
- Franchisor financing
- Not offered
- Item 10
- POS system
- PrintSmith Vision (MIS System)
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: PrintSmith Vision (MIS System)
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Alphagraphics franchise?
The total investment to open a Alphagraphics franchise ranges from $298K – $384K, with an initial franchise fee of $50K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Alphagraphics franchise owners earn?
According to Item 19 of the Alphagraphics FDD, the average gross sales per unit is $1.5M. The median is $1.1M. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
Who owns Alphagraphics?
Alphagraphics is franchised by AlphaGraphics, Inc.. Its parent company is U.S. Business Holdings, Inc.. The ultimate parent named in the FDD is WorldFly S.p.A.. Source: FDD Item 1, 2026 filing.
What is Item 19 in the Alphagraphics FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Alphagraphics FDD and qualifies whose outlets they describe.
What is Alphagraphics's franchise failure rate?
Based on SBA 7(a) loan data, Alphagraphics has a charge-off rate of 28.9% across 346 loans, meaning 28.9% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many Alphagraphics franchise locations are there?
As of their most recent FDD filing, Alphagraphics has 229 total units in the United States, including 229 franchised units and 0 company-owned units. 6 new units were opened in the latest reporting year.
Is Alphagraphics a good franchise to buy?
FranchiseVerdict rates Alphagraphics as a C-grade franchise with a verdict score of 40 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.