2018 Printing News Annual Franchise Review: Hitting Home Runs in the Marketplace

If you’ve never been introduced to a franchise, you might find the whole concept intimidating. Franchises have made an impact on every segment of our society, from where you buy your coffee (Dunkin’ Donuts) to where you buy your lunch (Firehouse Subs), and even the gym membership you swore you were going to use this year (Planet Fitness). Almost our entire lived experience in the United States is run by franchises and the printing market is no different.

Entrepreneurs often find franchise organizations less intimidating than beginning their own business because of the structure and support network they provide. Corporations offer the framework for their launch from the get-go, providing standard operation manuals, ongoing training, as well as any necessary technology.

Besides the support and proven framework for success, franchises offer brand recognition while still providing a franchisee with the independence, flexibility, and benefits of an independently-owned business.

Whether a business owner fares better through a franchise or an individually owned enterprise is inconclusive, but we know that when franchise owners feel supported and equipped with the proper tools, they are more likely to succeed in the marketplace because they believe in the value of the services they’re providing. According to Rick Grossmann, author of Franchise Bible: How to Buy a Franchise or Franchise Your Own Business, this confidence results in higher productivity, increased consumer engagement, and better customer service.

With printing being a $785.0 billion dollar printing industry that is only expected to swell to $814.5 billion by 2022 according to a case study conducted by Smithers Pira, the idea of investing in a printing franchise might be on your mind as you consider how to secure a piece of this gigantic market. Printing News has done the research for you with our annual look into how the top printing franchises are faring these days.

There are five companies that run the game in the printing franchise world:

• Alliance Franchise Brands (comprised of Allegra, American Speedy Printing, Insty Prints, KKP Canada, Speedy Printing, and Zippy Print);
• AlphaGraphics;
• Franchise Services Inc. (which includes PIP, Sir Speedy, Multicopy, Signal Graphics, and EastNet Print);
• Fortusis, previously ICED (comprised of Kwik Kopy Printing, Kwik Kopy Business Centers, The Ink Well, Franklin’s Printing, and American Wholesale Thermography); and
• Minuteman Press International.

These five franchise brands combined had a total of $662,017,420 in sales over 2017. We reported last year that average sales per shop are on the rise, and that trend continues.
Ryan Farris, President, COO, and CTO of AlphaGraphics maintains that the largest growth is still digital print, with signs coming in second. In discussing how AlphaGraphics changed in 2017 compared to 2016, the franchise brand had a large increase in signs (as a percentage of growth) due to their focus on support and training within the market segment.

AlphaGraphics’ network of like-minded business owners actively share resources and connect to their community by providing print, marketing, and signage fulfillment services. Their global reach is impossible to ignore with a median gross sales that averages over $900,000 and locations across the United States, Brazil, China, Cyprus, Hong Kong, Mexico, Saudi Arabia, and the United Kingdom.

Richard Lowe, President and CEO at Franchise Services, Inc. (FSI) also attributes signage for growing their business 25% in the last year alone. With their wide array of brands, FSI has been helping entrepreneurs establish their vision of independence for over 40 years. This commitment to serving their franchisee network with the latest leadership tools and resources resulted in over 240 million in sales in 2017. A franchisor’s brand is its most valuable asset because consumers decide which business to frequent based on the quality they’re used to receiving. Fortusis, known as the ICED printing franchise umbrella until their adoption into the Fortusis brand in October, has a 50-year-old legacy that began with the Hadfield family and continues today under the leadership of CEO Curtis Cheney. The Fortusis brand includes Kwik Kopy Printing, The Ink Well, Franklin’s Printing, Kwik Kopy Business Centers, and American Wholesale Thermographers.

Consistent execution is expected across locations in any franchise and CEO Curtis Cheney brings that knowledge with him into the C-suite as he was previously General Manager of the award-winning Kwik Kopy Business Center in Salt Lake City.

Minuteman Press is another franchise brand with a rich history. Their customer service driven business model provides digital print, design, and promotional services to businesses. The brand has been recognized by Entrepeneur Magazine for the quality of their marketing and printing services for over 26 years.

“What sets Minuteman Press apart from other franchises is the mass purchasing power that we can provide to our franchise owners getting them the best prices in the industry. The ongoing local support that we provide to our owners is unmatched and most importantly the cap we have on the royalties that they pay,” said Bob Titus, President and CEO at Minuteman Press.

Alliance Franchise Brand’s Marketing and Print Division reports $258 million in new system-wide sales in 2017. This growth is led by a strategy of strategic acquisitions. They also boast over 600 locations between North America and the United Kingdom.

Mike Cline, Vice President of Franchise Development at Alliance Franchise Brands, attributes new technology for providing opportunities that weren’t possible before. “Brand size and scope, multi country footprint, powerful purchasing power also allows for competitive pricing with desired margins,” he explained.

Jay M. Groot, Vice President at Fortusis, similarly attributes emerging developments in digital printing of all sizes and categories to their growth this year.

In planning to grow the business in 2017, Farris from AlphaGraphics said they will continue to build and grow sales culture with an emphasis on market leadership.

Another major trend leaders at these franchise brands are looking at is a continued investment in human capital. Unanimously, our survey presented that hiring, training, and retaining employees is among the most important concerns for each franchise brand. Commoditization is also a high priority, while sustainability practices had mixed replies with 20% responding it is “not important” for them to increase sustainability in 2018.

Although taxes did not appear high on the list of the important factors in business for 2018, health insurance costs and maintaining competitive wages were. It appears that (as we reported in last month’s issue) human capital is among the most valuable asset these companies have, matched only by delivering satisfaction to customers across the world.