ALLEGRA PRINT Franchise Complaints
Allegra Print franchise opportunity: Are you familiar with it?
If so, please share your experience, opinions or insights with a comment below.
The Allegra Print franchise website makes the unproven contention that owning a franchise greatly reduces risk of failure [we’ve added the bolding]:
“Owning a franchise offers most of the benefits of traditional business ownership with far less risk and provides additional aspects to assist with success. By buying into a franchise, you have the immediate backing of a recognized brand with a proven track record and business system. Franchise ownership provides:
“A proven idea for higher chance of success
“Reduced risk of failure compared to starting up an independent business of same type…
“Favorable view of franchising by lenders, as risk is reduced in a franchise system”
However, data released by the Small Business Administration (SBA) indicates that Allegra Print franchise owners who qualified for SBA-backed franchise loans have an disturbingly high loan failure rate of 25%.
That qualifies Allegra Print for inclusion in UnhappyFranchisee.com’s list of WORST FRANCHISES IN AMERICA (by SBA loan defaults)
Allegra Print franchise owners have an alarming 25% SBA default rate.
The apparent drop in Allegra Print franchises in recent years is also a franchise red flag.
| Allegra Print Franchise | |
| Allegra Print U.S. franchises in 2008: | 396 |
| Allegra Print U.S. franchises in 2012: | 264 |
| Growth in franchise units 2008 – 2012 (#) | -132 |
| Growth in franchise units 2008 – 2012 (%): | -33% |
| SBA loans granted since 2001: | 28 |
| SBA loan failure rate: | 33% |
| Sources: Entrepreneur (growth), Coleman report (SBA) |
The inability to repay an SBA-backed loan (or any franchise loan, for that matter) indicates a serious situation for the franchisee.
It’s likely that Allegra Print franchise owners who received SBA loans may have collateralized their franchise loan with their homes or other personal assets, and many were unable to repay those franchise loans… despite the serious incentive to do so.
Are you familiar with the Allegra Print franchise opportunity?
What do you think accounts for the SBA loan failure rate of Allegra Print franchise owners?
What steps should Allegra Print be taking to stop further franchise failures?
Has Allegra Print taken serious action to address the problems that led to these loan failures?
Please share a comment (anonymous is fine) or Contact UnhappyFranchisee.com.
If you are a Allegra Print franchise representative or employee, please feel free to leave a comment or email us at UnhappyFranchisee[at]gmail.com.
ARE YOU FAMILIAR WITH THE ALLEGRA PRINT FRANCHISE OPPORTUNITY? ARE YOU A CURRENT OR FORMER ALLEGRA PRINT FRANCHISE OWNER? PLEASE SHARE A COMMENT BELOW.
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October 10 2013
Good Morning-
I wanted to call to your attention what we believe is at minimum a corporate over reach and could be considered by many to be unfair and an injustice action by the Allegra Network home office.
On expiration of our 20 year franchise agreement at the end of June we found out the hard way, that the non-compete clause not only applied to a contract termination but also on the contract expiration.
Following some not so good advice from our attorney, we really believed that the Minnesota Franchise Statue 2860.4400 would provide us some coverage and leverage to negotiate the location restriction of the non-compete. After all, the home office declined the option to take over our lease and we already were quite some distance from any of the other centers. An important fact is that we have 12 other network franchises in our metro market. Our center was number 13.
When you consider the conditions of the non-compete (5 mile radius from any of the other 12 and 10 miles from our center) the actual areas left in the Twin Cities Metro area where we could relocate were restrictively limited.
We had completely “de-Allegra identified “ our building in and out, website, social media etc. Our website, and emails were given to another center the day after expiration, which is all fine and things that we expected. The big problem for us is that our lease here does not expire until 8/1/15. Our landlord has no tenant to replace us and we have no sub-lease candidate. We can’t pay two rents.
We have a had a leading commercial realtor working with us since April, but the conditions of the non-compete (5 miles from any other center and 10 miles from our previous address), have left the choices very few in the under 5000 sq. ft. size and with the concrete and 200 amp – 3 ph. (electric) we need for our 4 color 20 inch press.
The home office has filed, in Michigan court, a law suit against Joan and I stating that we somehow are still using the trademark – we absolutely are not – and the non-compliance to the non-compete – in which we admit we are, but because of the situation of our property.
To defend this in Michigan is very expensive,
We have faithfully paid them and the previous Insty-Prints group nearly $1,000,000 in royalties over the 20 years and owed them nothing on expiration. Allegra purchased all the Insty Prints contracts in 2003 and we converted to an Allegra in 2005.
The home office is claiming that our continued presence in Burnsville, MN is causing irreparable damage to the Allegra network’s brand and the other franchises in the area.
In 20 years of being an Insty-Prints and an Allegra, Joan and I cannot recall one competitive conflict with another franchise over an account or proposal for new business. We have always respected the other franchises and gone out of our way to help any one of the other franchises who needed help in anyway we could be of help.
We don’t wish ill-will on anyone, not locally or the home office we are just trying to feed our families and our employee’s families.
They are determined to bankrupt us…