Franchise News Release: Salt Lake City, UT - (Nov-15-2003)

AlphaGraphics Captures Quick-Print Industry With Unstoppable Growth; Former Corporate Execs Help Guide Promising Future of Global Printing Franchise

Officially leading the pack in individual store sales, with many of its 284 locations generating at or near $1 million annually, AlphaGraphics is living up to its tagline, "Printshops of the Future" with leading edge technology, ISO 9001:2000 designation and ongoing partnerships with thousands of small to medium-sized businesses worldwide.

"The jury is in," said Keith Gerson, Vice President of Global Development. "Clearly, AlphaGraphics has emerged as the frontrunner in individual stores sales and year-to-year system growth, and we've become a magnet for the highest caliber, corporate-minded franchisees. We've acquired individual operators throughout the country and outshined all of our competitors with stellar services and leading edge technology. Our global network has the capabilities to store and print materials on demand, which makes us an ideal print business partner."

With former CEOs and other first-rate displaced corporate executives running the show (approximately 90 percent of its franchisees fall into that category), AlphaGraphics has successfully combined digital technology with traditional ink-on-paper to forge ongoing partnerships with small-to-medium-sized businesses around the world. With more than 284 locations in 14 countries, AlphaGraphics has now firmly established itself as the leading worldwide provider of designing, copying, printing and digital publishing services. In fact, it just signed an agreement with a master licensee for the Russian Federation.

Individually, AlphaGraphics boasts the highest annual reported per store sales average of any other quick-print Franchise in its category. A 2002 audit reported that AlphaGraphics stores open three or more years averaged annual sales of $1,021,908, while stores open two or more years averaged $997,294 sales annually. AlphaGraphics locations open one or more years reported an average of $981,020 in annual sales.

Gerson attributes the system-wide franchise growth and individual store success in large part to ISO 9001:2000 certification, the newest standard for the industry that signifies AlphaGraphics has met international quality management and assurance standards. AlphaGraphics remains the only franchisor and franchisee network to have this designation.

"As a result of our ISO commitment, we've got the best metrics in the business for the lowest error rates and the best on-time delivery, clearly the hallmark of a "quick-printer," Gerson said. "In 1999, we became the only franchise organization to receive ISO 9002 certification for franchise administration, which includes selling, opening, training, operating and supporting of franchises. That says mountains about our credibility, with customers and potential franchisees."

AlphaGraphics supports its franchisees with two sets of operations consultants - one that focuses on the franchisees top-line, the other that focuses on profitability. Field consultants contact stores weekly and visit monthly. Regional consultants visit quarterly.

Also, with such a significant share of AlphaGraphics' franchisees coming from high-level positions at IBM, Kimberly Clarke, Polaroid, Playtex and others, the company utilizes the collective expertise of its corporate-minded franchise pool to drive the brand's future. A Network Leadership Council made up of franchisees meets with AlphaGraphics' executives periodically to identify system-wide issues, devise solutions, predict trends and strategize for the future.

Tapping into their skill sets and expertise, the franchise has successfully turned its 'Bricks, Clicks, and Mortar' strategy into a real competitive advantage, developing market-leading e-business solutions to enhance its core business.

"Our top-notch franchisees have significantly contributed to our formula for success," Gerson said. "With their respected input, we emerged from the digital revolution a strong leader, supplementing our core competencies with the equipment and skills necessary to meet the evolving communications needs of our business partners. We invested millions to equip the e-commerce portion of the AlphaGraphics' equation for franchisees and customers, and it's paying off."



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